Decentralisation of lottery regulation poses security challenges, investor says

Abayomi Nurain Mumuni, a chieftain of the ruling All Progressives Congress in Lagos state and renowned global security expert, has declared that decentralisation of lottery regulation poses security challenges in the country.

Mumuni, who is the Chief Executive Officer of MorRich Lottery Limited, made this declaration via a petition addressed to the National Security Adviser, Nuhu Ribadu – a copy of which was forwarded to journalist.

Recall that the Supreme Court had last Friday nullified the National Lottery Act 2005 enacted by the National Assembly sequel to the suit filed in 2008 by Lagos and other states. The Court in a unanimous judgement consisting of seven members in its ruling held that the National Assembly has no power to legislate on issues relating to lottery and games of chance.

But, Mumuni in the petition entitled “Addressing Security Concerns Following Supreme Court Judgment on Lottery Regulatory Independence”, disclosed that the ruling has raised significant concerns regarding the implications of allowing state governments to manage lotteries, particularly in the context of online gaming.”

He added that online lotteries and gaming present unique challenges that require a comprehensive approach to security.

Mumuni, a member of the intelligence and security team, an arm of Tinubu/Shettima Presidential Campaign Council (PCC), for 2023 Presidential election, added that decentralization of lottery regulation poses serious security challenges.

“I am writing to bring to your attention the recent Supreme Court judgment concerning the regulatory independence of lotteries in Nigeria. This ruling has raised significant concerns regarding the implications of allowing state governments to manage lotteries, particularly in the context of online gaming.

“As you are aware, online lotteries and gaming present unique challenges that require a comprehensive approach to security. The decentralization of lottery regulation poses risks related to:

“Know Your Customer (KYC) Challenges: Effective KYC processes are crucial for identifying participants and preventing fraudulent activities. State governments may lack the uniform guidelines and resources established by the central government, leading to inconsistencies that can be exploited.

“Cybersecurity Threats: The proliferation of online platforms heightens the risk of cyber- attacks. Insufficient security measures at the state level can expose sensitive information and financial data, making participants vulnerable to cybercriminals.

“Money Laundering; Lotteries are often exploited for money laundering activities. Without stringent regulatory oversight by the central government, state-run lotteries may become conduits for illicit financial flows, undermining national security efforts.

“Regulatory Disparities: The creation of a fragmented regulatory landscape can lead to varying standards across states, complicating enforcement and compliance measures. This lack of uniformity could hinder the fight against organized crime and other associated threats.

“Given these challenges, I urge the National Security Adviser to consider advocating for a more centralized approach to the regulation of lotteries and online gaming in Nigeria. This would enable the establishment of robust KYC protocols, enhanced cybersecurity measures, and uniform anti-money laundering frameworks that are critical for safeguarding the integrity of our financial systems.

“Collaborative efforts between the central government and relevant stakeholders will be essential in addressing these issues effectively. I recommend convening a forum to discuss these matters in detail and identify actionable strategies that ensure the security and proper regulation of lotteries in Nigeria.

“However, the Supreme Court Judgement failed to addressed the aforementioned, which may basically result into future Armageddon and propelled multiple litigations against the Federal Government. Thank you for considering this crucial issue. I look forward to your response and the opportunity to contribute to this vital discussion”, the petition reads.