Cross River State Lotteries Agency endorses unified licensing
With millions of Nigerians betting weekly and the market growing rapidly, the new licensing framework arrives at a crucial time when states look for reliable revenue sources.
Nigeria.- The Cross River State Lotteries and Gaming Agency has thrown its weight behind the Subnational Reciprocity Licensing Framework recently adopted by the Federation of State Gaming Regulators of Nigeria (FSGRN), which allows gaming operators to obtain a single licence valid in all 25 member states, rather than applying separately in each jurisdiction.
While addressing the press on October 2, 2025, Michael Eja, Director-General of the agency, said that the new licensing system will greatly increase state government revenues while simplifying operations for gaming companies across the country.
The framework was developed to reduce costs and speed up processes for businesses involved in lotteries, sports betting and other gaming activities. States will maintain their individual regulations and oversight while transparently sharing revenues from licensing fees among themselves.
Eja explained: “The real innovation here is in the revenue model. By harmonising licensing and sharing revenues, states will see a measurable increase in internally generated revenue (IGR) while providing clarity and certainty to investors.”
He emphasised the importance of timing, noting that the gaming industry’s rapid growth and increasing interest from foreign investors create an opportune moment to implement the framework. He believes the unified system will attract long-term investments, generate jobs and build trust in the sector.
The framework was formally agreed upon by FSGRN members on May 7, 2025 in Lagos, with an incentive offered for early adopters: fee waivers for 2025 licences for companies already licensed by the defunct National Lottery Regulatory Commission. Last month, FSGRN added further details, introducing a flat 11 per cent tax on gross gaming revenue starting in 2026 and an annual licence fee of ₦100 million (€58,400).
These measures are designed to support public projects like schools and roads, which Eja referred to as “good causes”. For local communities, particularly in states like Cross River, this system could translate to increased funding for essential services without placing additional tax burdens on residents.
The move also eases expansion for gaming companies into both urban and rural markets by cutting through red tape that previously hindered cross-state operations.
Eja noted that regulatory standards remain strict, and will also see banks and telecom companies running holiday promotions secure licences to protect consumers and prevent legal disputes. He urged governors and lawmakers to fully support the plan, stating: “This puts us on the map as a place where business thrives under fair watch.”
With millions of Nigerians betting weekly and the market growing rapidly, the new licensing framework arrives at a crucial time when states look for reliable revenue sources. The Cross River agency already enforces local gaming laws rigorously, and Eja expects the national coordination to further improve oversight for all stakeholders.
