In a judgment delivered on March 31, 2023, the Supreme Court of Nigeria, led by Justice Mohammed Lawal Garba, ruled in favor of the Attorney-General of Lagos State in a long-standing legal dispute with National Sports Lottery Ltd. and NSL Lottery Management Co. Ltd.
![](https://thenigerialawyer.com/wp-content/uploads/2025/01/8th-Annual-Conference-of-the-Nigeria-ILA.jpg")
![](https://thenigerialawyer.com/wp-content/uploads/2024/11/TheNigerialawyer-WhatsApp-Channel1.jpg")
The case, which has spanned nearly two decades, centers on whether lottery operators licensed by the Federal Government must also obtain licenses from state governments to operate within their jurisdictions.
The dispute originated in 2005 when the Attorney-General of Lagos State filed a suit at the Lagos State High Court seeking a declaration that the respondents could not operate a lottery business in Lagos without obtaining a license under the Lagos State Lotteries Law, 2004. The state argued that operating without state licensing undermines local regulatory authority and revenue collection.
The respondents, however, challenged the Lagos court’s jurisdiction, arguing that lottery operations fall under the Exclusive Legislative List, making it a matter solely under the Federal Government’s control.
The Supreme Court was tasked with answering two primary questions:
- Whether the action filed by the Lagos State Attorney-General amounted to challenging an executive or administrative action of the Federal Government.
- Whether the Court of Appeal was right to refuse to consider other critical issues raised in the appeal after determining jurisdiction.
Justice Mohammed Lawal Garba, in his lead judgment, clarified that the Lagos State Government was not challenging the validity of the federal license issued to the respondents. Instead, the case focused on whether the respondents must comply with state licensing laws while operating within Lagos State.
The court ruled that:
- The Lagos State High Court has jurisdiction to hear the case as it pertains to compliance with state laws.
- The Court of Appeal erred in declining to consider all issues raised in the appeal after ruling on jurisdiction.
The Supreme Court emphasized that even if the Federal Government grants a license for a nationwide lottery operation, operators must still comply with state-level regulations where they conduct their business.
Furthermore, the court ordered the case to be remitted to the Chief Judge of Lagos State for proper determination at the Lagos State High Court.
“The suit is simply one that is entirely based on the interpretation and application of the 2004 Lagos State Lotteries Law in relation to the respondents’ operation, conduct, and carrying out of lottery business in Lagos State. The issue does not challenge the validity of the federal license,” Justice Garba noted.
This ruling sets a precedent affirming the regulatory authority of state governments in matters not explicitly covered under the Exclusive Legislative List. It also underscores the need for businesses operating across states to adhere to local laws in addition to federal regulations.
The Supreme Court’s decision represents a victory for state autonomy in regulatory matters and emphasizes the principle of federalism enshrined in Nigeria’s Constitution.
IN-THE-SUPREME-COURT-OF-NIGERIA TheNigeriaLawyerThe case is now expected to proceed at the Lagos State High Court for final resolution.
A new serial publication with broad title "Civil Litigation Serial" has launched to provide concise resource guide for civil litigation practitioners. The first volumes are now available for purchase through a network of independent booksellers across Nigeria. Call 07051822705 ______________________________________________________________________ Nominations Open For Legal Leaders Awards 2025, Celebrating Excellence In Istanbul ![](https://thenigerialawyer.com/wp-content/uploads/2024/06/Legal-Leaders-Awards.jpg")
______________________________________________________________________
[A MUST HAVE] Evidence Act Demystified With Recent And Contemporary Cases And Materials
