Dr Vincent Olatunji, the national commissioner/CEO of NDPC, represented NDPC, Mr Lanre Gbajabiamila, director general, NLRC, represented NLRC, and Mr c, director general of SMEDAN, represented SMEDAN during the signing of the MOU at the Headquarters of SMEDAN and NLRC respectively.

The partnership with SMEDAN seeks to promote data protection within the Small and Medium Enterprise ecosystem, with approximately 40 million SMEs.

The MoU establishes a framework for collaboration, including the formation of a working group to focus on capacity building in data protection.

This initiative aims to educate SMEs on adopting appropriate technical and organizational measures towards safeguarding data privacy.

Dr Olatunji who expressed optimism about the implementation of the memoranda with the two strategic agencies assured stakeholders that the trusted use of data will guarantee short, medium and long term growth.

 “You have almost 40 million players within this sector alone, imagine the exponential growth we can bring in if people can carry out transactions on the basis of trust and confidence. It is good that we are here today, to put pen into paper, we have to work together to ensure that there is privacy in what you are doing in the sector.”

The MoU between the NLRC bolsters the collaboration between the two Commissions. The DG, NLRC, Mr Lanre Gbajabiamila, expressed gratitude for NDPC’s ongoing support and also underscored the importance of safeguarding personal data within the gaming ecosystem.

The MoU formalises the commitment to uphold data protection laws and implement best practices in data storage and processing.

Dr Olatunji reiterated the significance of this partnership, emphasising the need to protect the personal data of approximately 60 million data subjects within the gaming sector.

He stressed the importance of training NLRC staff and stakeholders on data protection principles to foster a culture of compliance.

He said,

“We are looking at an ecosystem with about 60 million people who regularly exchange and process data, this is one sector that cannot be overlooked. SMEDAN has 40 million Nigerians monitored under them, we have almost half of the population.”

“When we talk about the interests and freedom of all Nigerians, we have to ensure that the personal data of over 220 million people are adequately protected and processed in line with extant regulatory framework, ” he added.

Mr Lanre Gbajabiamila, the director general, NLRC, expressed appreciation to the NDPC for their ongoing work.

“The change that the establishment of NDPC has brought to the gaming value chain is commendable, we are not taking this MoU for granted. International partners come here to see what we do and make comments that are welcoming to show that we are on the right part which is acceptable to the industry for operations to come in.

“We would also like to collaborate with you in conducting joint awareness campaigns and capacity building on data governance.

Mr Charles Odii, the DG, SMEDAN, expressed appreciation for NDPC’s readiness to collaborate. He emphasised the significance of data protection and complying with the Nigeria Data Protection Act, 2023, in preparing for international business.

He said, “SMEDAN is out to prevent exposure of our data for selfish and malicious operations.  We have to show that the data we are mining in Nigeria is protected according to our data protection law.”

“We cannot be a development agency if we are not teaching small businesses the right thing to do. In developing small businesses, we need to upskill and sensitise them. We will go into the nooks and crannies of Nigeria to make them understand that if you process data then you must abide by the data protection laws in Nigeria,” he added.

These collaborations mark significant milestones in NDPC’s mission to promote data protection and privacy across diverse sectors in Nigeria. The commission remains committed to fostering partnerships that uphold the rights of individuals and ensure the responsible handling of personal data.

However, there have been growing concerns and criticisms regarding the effectiveness and efficiency of the commission in fulfilling its objectives.

It then becomes imperative to now examine the reasons why stakeholders in the industry feel that the NLRC should be scrapped.

This position is mostly based on various aspects such as the lack of transparency and accountability in the commission’s operations, inefficient utilization of funds for social development, inadequate regulation and oversight of gambling activities, high incidences of fraud and scams in the industry, negative impact on small-scale gaming operators and local businesses, lack of interest by the commission on responsible gambling initiatives and lack of international best practices in gaming/gambling regulations.

By exploring these issues extensively, a lot more light will be shed on the need for reform and alternatives to improve the Nigerian gambling sector.

The NLRC was established in 2005 with the aim of regulating and overseeing lottery and other gaming activities in the country.

Its establishment was seen as a way to generate revenue, promote transparency, and protect consumers in the industry. Though the establishment of the commission was purely accidental, as it was initially set up to manage the funds generated from the Sports Lottery concept that was set up at that period.

The main objectives of the NLRC then became to ensure the integrity of lottery/gaming operations, protect the interests of players, and generate funds for social development programs.

The commission also took up the responsibility of issuing licenses, monitoring gambling activities, and enforcing compliance with regulations.

One of the major concerns with the National Lottery Regulatory Commission is the lack of transparency in the licensing and permitting process, the allegations of mismanagement as well as lack of financial accountability of funds for CSR and Good Cause. There have been little or nothing to show where the funds intended social development programs are spent.

Above all these is the fundamental issue of the near absence of a clear cut plan to encourage Responsible Gambling and tackle menace of problem gambling in the country.

As the month of November is globally observed as commemorative month for Responsible Gambling, it is noteworthy to explain how Responsible gambling promotes a healthy balance between entertainment and potential financial loss.

This is because Problem gambling can have severe financial implications for individuals and their families. Many gamblers who struggle with addiction end up in debt, squandering their savings and assets. The financial strain caused by problem gambling can lead to negative consequences such as poverty, bankruptcy, strained relationships and mental health complications.

Responsible Gambling therefore, is exclusively the role of an interested industry regulator…a trait of which NLRC has been grossly lacking in.

At the launch of an Online betting platform BETBABA in Lagos recently, the managing director of the company, Francis Ifie, noted that irresponsible gambling and betting have caused serious issues for gambling addicts and people who suffer from gambling-related harm. At the time, he called out NLRC for failure to should impose strict rules to make sure that betting companies are in line with strict measures that will fight the further spread of problem gambling and gambling-related harm.

According to him;

“it is important that Nigerian gambling operators have facilities on their betting platform that promote safe and responsible gambling, and it is imperative that NLRC should have been more focused on such a regulation”.

Because responsible gambling goes beyond promoting a safe and enjoyable experience while minimizing the potential harms in gambling, it also goes a long way to showcase the social responsibility side of the industry by encouraging the use of parts of the funds the regulator is entitled to, to promoting good causes, CSR and other values in the society.

This brings up another of the key reasons why the National Lottery Regulatory Commission should be scrapped, which is the poor utilization of funds generated from the gaming industry that has a direct impact on social development programs in Nigeria. Insufficient funding and misallocation lead to the underfunding of vital initiatives, such as healthcare, education, and infrastructure development.

This not only hampers the progress of these programs but also undermines the potential benefits that the gaming industry could bring to society.

In addition to the forgoing, the National Lottery Regulatory Commission has been criticized for its weak regulatory framework and inadequate enforcement mechanisms owing to the perceived unconstitutional framework on which the commission’s existence lies.

Without delving much into the egregious wordings of the Constitution of the federal republic of Nigeria, it is important to note that issues pertaining to the powers of the federal government in exclusive list and concurrent list, did not give the powers to regulate gambling to the federal executive.

Therefore setting up a federal agency to undertake the role of gambling regulation for the entire country is already a mis-application of the law. But as this particular matter is already before the Supreme Court, such will be left in the hands of the Honourable Justices to sort out.

The lack of effective compliance, monitoring and enforcement actions further weaken the commission’s ability to regulate the gambling industry.

This is obviously as a result of the diversity of the country, which makes it certain that regulation of gambling can not be the responsibility of a central agency but rather the individual states where such gambling practices are allowed.

Looking at international best practices and success stories in gambling regulation, it becomes clear that alternative approaches can yield more effective results.

Various countries like South Africa, Kenya, Tnazania and Bostwana, have implemented successful gambling regulatory reforms, showcasing models that prioritize transparency, accountability, stringent security measures as well as concerted efforts at promoting responsible gambling.

By the statutes that most African regulatory bodies under the auspices of The Association of Gaming Regulators in Africa, adhere to, has always been in the area of testing and certification, responsible gambling, curbing illegal gambling, training and research. Instructively ‘Licensing’ is not one of those in focus for regulators as is being done in Nigeria through the NLRC.

To address the challenges faced by the NLRC, alternative approaches should be considered. Empowering state and even local governments to play a more active role in oversight, licensing and regulation that can lead to better outcomes.

Also implementing transparent and accountable gaming regulatory frameworks, coupled with encouraging innovation and technology adoption, can also bring much-needed improvements to the sector.

By exploring these alternative approaches, Nigeria can pave the way for a more efficient and trustworthy gaming system.

In conclusion, the NLRC faces significant issues in transparency, accountability, fund utilization, and regulation of gambling activities.

These challenges undermine the commission’s effectiveness and compromise its ability to fulfil its objectives. Scrapping the commission and implementing reforms that address these issues could lead to more efficient and beneficial gambling/gaming industry in Nigeria.

*Ejiofor Agada, a social/political and technology industry commentator, writes from Abuja. He can be reached via ejiofor.agada@gmail.com

[Featured Image Credit]

The Super Rewards Campaign is a customer-focused initiative designed by Ecobank Nigeria to reward customers’ loyalty and consistent use of the bank’s electronic payment platforms.

This edition of Super Reward campaign, tagged, ‘Season 3.1,’ rewarded 100 customers monthly since November, 2022 with cash prizes of N50,000, while four customers won N1 million each at the end of the three-month campaign which ran between November 2022 to January 2023.

The four winners are Mr John Sokeipiriala, Ahmed Said, Onashile Obafemi, and a couple with a joint account, Mr David Edokwe and Mrs Ifeoma Edokwe.

Speaking at the cheque presentation in Lagos, Head, Consumer Banking, Ecobank Nigeria, Mrs Korede Adeniyi, said the scheme was introduced by the bank to reward customers’ loyalty, adding that it was also to promote the use of its electronic payment channels that offered convenient banking.

According to her, “This is the third edition of our reward initiative which started about two years ago. The feedback from our customers have been quite impressive. It is not just to encourage people to save but also transact on our digital channels.  Today, you and I know that with the cash scarcity, the digital banking channels have become very helpful. So today, we’re rewarding four customers who won N4m. We have also rewarded 100 customers with cash prizes of N50,000 monthly during the period of the campaign.”

Commenting on the dynamics of the scheme, Daberechi Effiong, Head, Asset Products, Ecobank Nigeria, said the conditions to qualify for the scheme were made simple and easy to ensure both new and existing customers of the bank participate and get rewarded.

According to her, “new customers were expected to open an account with a minimum of N5,000 and maintain the deposit for a 30-day period”. “Same applies to existing customers, who only need to fund their active account with a minimum of N5,000 or reactivate their dormant account with a minimum of N5,000 and maintain the deposit for a 30-day period.”

One of the joint account winners, Ifeoma Ezokwe, said she and her husband did not expect they would win a promo from the bank.

She said, “When we got married, we decided that joint account is one of the things we’re going to inculcate into the marriage, and we’ve been operating the accounts very well. For more than 12 or 13 years we’ve been running the joint account”.

“When they called us for this, we felt, this was just beyond our expectation. We were just running the account normally as a business transaction. So, this is what we get as a reward for running the account very well, and I’m very happy. We want to say thank you to Ecobank, they’ve been with us for a long time.”

The presentations was witnessed by officials from Federal Competition and Consumer Protection Commission (FCCPC) and National Lottery Regulatory Commission (NLRC) who also applauded the transparency of the exercise.

Prof. Umar Danbatta, the Executive Vice Chairman of NCC, noted that the MoU, which will impact the gaming industry, is in sync with the Commission’s Strategic Vision Plan (SVP) and is in a bid to promote fair practices in the industry for the protection of telecommunications consumers in relation to lottery and gaming activities.

He said the collaboration is in line with the provisions of Commission’s SVP, 2021-2025, which provides for facilitation of strategic partnership and collaboration with other bodies to enhance service delivery.

He explained, “The initial MoU expired in 2022, amendments and modifications have been made since no MoU is cast in stone, especially given the industry’s dynamic nature.”

Mr Lanre Gbajabiamila, the Director General of NLRC, expressed confidence that the MoU will yield favourable outcomes in curbing illegal online gambling as he shared his hope that NCC and the Lottery Commission will achieve their intentions in the interest of gaming stakeholders.

He noted how unapproved lottery and gaming activities and practices undermine the integrity of domestic and global gaming markets to the detriment of stakeholders in addition to undermining consumer confidence in these markets, hence the collaboration with the Commission to arrest such tendencies.

Earlier in his opening remarks, the Executive Commissioner (Stakeholder Management), Barr. Adeleke Adewolu disclosed that the MoU was designed to address recent technology information-sharing capabilities, and consumer satisfaction and to enhance areas of co-regulation in line with the Federal Government’s digital economy mandate.

The new MoU replaces one that was first signed by both organizations, which expired in 2022.

It provides complementary approaches to deter unapproved lottery/gaming practices on telecommunications platforms through information and intelligence sharing in recognition of how unapproved lottery and gaming activities and practices undermine the integrity of domestic and global gaming markets to the detriment of stakeholders in addition to undermining consumer confidence in these markets.

Under the agreement, following requests from NLRC, NCC shall endeavour to block or disable illegal lottery gaming operators on the telecommunications service providers’ platform in Nigeria and NLRC.

The document was developed by a Joint Implementation Committee (JIC) comprising representatives of NCC and NLRC to implement the MoU and other matters that promote collaboration between both organizations in their regulatory functions.