NIGERIA– The Federation of State Gaming Regulators of Nigeria (FSGRN) has strongly criticized provisions contained in the Federal Competition and Consumer Protection Commission’s (FCCPC) Sales Promotion Regulations, 2026, arguing that they threaten the constitutional authority of states to regulate lotteries, betting, gaming, and games of chance.

In a statement, the federation said the regulations appear to grant the FCCPC licensing, approval, and supervisory powers over promotional lotteries and gaming activities, functions it maintains are exclusively within the jurisdiction of state governments.

The FSGRN described the move as inconsistent with Nigeria’s constitutional framework and contrary to the Supreme Court judgment delivered on November 22, 2024, in the case between the Attorneys-General of Lagos State and the Federation. According to the federation, the ruling affirmed the authority of states to legislate and regulate lotteries and games of chance within their territories and invalidated aspects of the National Lottery Act, 2005, that sought to extend federal control over state gaming activities.

The federation argued that lotteries, betting, gaming, and other games of chance fall under the residual legislative powers of states as provided by Section 4(7) of the 1999 Constitution. It stressed that promotional lotteries or prize draws do not lose their legal character simply because they are framed as marketing campaigns, consumer reward programs, or sales promotions.

According to the FSGRN, the FCCPC regulations extend beyond consumer protection into areas traditionally reserved for gaming regulators. The group raised concerns over provisions requiring mandatory registration of sales promotions with the FCCPC, payment of regulatory fees, issuance of registration certificates, and powers to suspend or revoke approvals.

The FSGRN further criticized references within the regulations to the National Lottery Regulatory Commission (NLRC) and the National Lottery Act, arguing that they fail to reflect the legal implications of the Supreme Court’s 2024 judgment. It warned that requiring operators to obtain additional federal approvals for activities already regulated by states would create regulatory duplication, increase compliance costs, and discourage investment.

The FSGRN also argued that any attempt by federal agencies to reclaim gaming regulatory powers through subsidiary legislation would undermine constitutional federalism, the rule of law, and the authority of the Supreme Court.

Consequently, the federation has called for the immediate review and amendment of the FCCPC Sales Promotion Regulations, 2026. It urged regulators to remove provisions that it believes encroach on state regulatory powers, as well as references to the National Lottery Act and the NLRC where they imply federal jurisdiction over lottery activities within states.

The federation further called on the Attorney-General of the Federation to ensure that all federal agencies comply with the Supreme Court ruling and respect the constitutional boundaries between federal and state powers.

Despite its objections, the FSGRN reaffirmed its commitment to collaboration with federal institutions on consumer protection and industry development. However, it maintained that it would take all lawful steps necessary to defend the constitutional rights of its member states and preserve state authority over gaming regulation in Nigeria.