NIGERIA Trends and Developments Contributed by: Tiwalola Osazuwa, Peretimi Akinmodun, Lazarus Uwa Kalu and Mubaraq Popoola, ǼLEX
Introduction Nigeria’s technology, media, and telecommu - nications (TMT) industry is undergoing signifi - cant transformation, driven by advancements in innovation, evolving regulations and shifts in economic policy. As one of Africa’s largest and most vibrant markets, Nigeria continues to posi - tion itself as a hub for digital innovation. These changes have created new opportunities and challenges, underscoring the need for regula - tory and judicial measures aimed at protecting consumer safety, fostering clarity and promoting sustainable growth without stifling innovation. This chapter aims to provide insights into recent regulatory and judicial actions, as well as broader trends reshaping Nigeria’s TMT sec - tor. It explores their implications for businesses, consumers and policymakers and offers insights into how these developments are shaping the industry’s future. Lotteries and Gaming Supreme Court decision on regulation of lotteries in Nigeria On 22 November 2024, the Supreme Court delivered a landmark judgment, nullifying the National Lottery Act 2005 (the “NLA”), which had established the National Lottery Regula - tory Commission (the “NLRC”) as the author - ity primarily responsible for regulating lotteries across Nigeria. Prior to this decision, the NLRC’s authority often overlapped with state-level reg - ulatory frameworks, particularly Lagos State, which enacted the Lagos State Lotteries and Gaming Authority Law 2021 (the “LSLGA”). This dual regulatory framework created con - fusion for operators, who sometimes faced overlapping compliance obligations at both the federal and state levels. The Supreme Court’s judgement resolved the long-standing tension
by declaring that the regulation of lotteries and games of chance is the exclusive right of the states. The decision is expected to have far- reaching implications for operators and regula - tors alike. State empowerment and localised regulation The judgment empowers states to enact regula - tory frameworks tailored to their local realities and socio-economic contexts. The localisa - tion of lottery regulation should also allow for consumer protection measures tailored to local needs, enhancing oversight and addressing issues like underage gambling and fraud. How - ever, due to the varying level of sophistication and administrative structure across the states, the implementation of local lottery laws may pose challenges in less capable states. States will therefore need to strengthen institutional capacity, develop comprehensive legislation and establish robust enforcement mechanisms to effectively implement the decision and max - imise its benefits. Increased complexity for operators Decentralisation creates challenges for opera - tors, who must now navigate diverse regulatory regimes across the various states in relation to licensing and compliance requirements. Inevi - tably, this will increase administrative burdens and operational costs for multi-state businesses. Practicality of regulating remote operations Modern lotteries and gaming companies rely heavily on technology to offer services remotely across multiple states. Accordingly, operators licensed in one state (eg, Lagos State) but offer - ing services remotely to customers across other states may fall under the jurisdiction of multiple state regulators, leading to conflicts of authority and possible regulatory overlap and conflicting legal requirements. Indeed, one of the key ben -
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