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Romanus Ugwu, Abuja
Miffed by what they described as harsh operational environment and multiple heavy taxation, Licensed Lottery Operators have pleaded with the Federal Government for intervention, lamenting that they had led to the collapse of 60 per cent of lottery firms in the country.
The group complained that lottery operators are collapsing under the heavy weight of taxes imposed by government at the federal, state and local government levels, in addition to other mandatory financial demands by the authorities.
Addressing newsmen in Abuja, the Chairman, Licensed Lottery Operators Forum (LLOF), Chima Onwuka, stated that the operators have concluded plans to convene a stakeholders’ meeting to address the challenge confronting the business in order to chart way forward.
“For a lottery company to operate in Nigeria, you would pay the National Lottery Commission N150 million for a licence; Lagos State government takes N200 million for a licence for five years.
“Ogun State charges N40 million while Oyo requires N60 million and other states have their fees. In Lagos, every terminal also pays N20,000 per annum, apart from VAT, taxes and other levies,” he noted.
Onwuka argued that there was need to amend the Lottery Act to distinguish between jackpot and fixed odds, adding that it will enable the operators to decide on the one to focus on.
“There is a clear distinction in the laws that govern the game, what we have now is the law on jackpot, nobody is talking about fixed odds. If the law recognizes the differences between the two, the operators would be able to decide the one they want to do.
“The necessary distinction was not made in the law when it was crafted; we want the law to be amended to address these concerns,” he appealed.
Onwuka, who described the lottery as a major source of revenue for the government, noted that the authorities must, however, invest in infrastructure to grow the business and by extension, the revenue accruable to the federation.
“Lottery is a major source of revenue for the country but the government has failed to invest in it. In other countries, only one or two operators run the lottery business but in Nigeria, there are about 26 operators out of which over 60 per cent have closed up,” he said.
