Director-General, LCCI, Mr. Muda Yusuf
| credits: www.myfinancialintelligence.com

The Registered Trustees of the Lagos Chamber of Commerce and Industry has asked a Federal High Court in Lagos to stop the National Lottery Regulatory Commission from impossing lottery levies on its member companies who embark on periodic sales promotional activities to motivate their customers.

Sued alongside the NLRC are the National Lottery Trust Fund and the Lagos State Lottery Board.

The plaintiff has asked the court to detemine, among others, “whether or not the periodic sales promotions organised by the plaintiff’s member companies to build brand loyalty and product awareness constitute ‘lottery business’ within the contemplation of the provisions of sections 17, 19 (1)(2) (3), 29 and 34 (1)(e) of the National Lottery Act, 2005 as well as Sections 12(1), 14 (3) (e) and 46 (1) (a) of the Lagos State Lotteries Law Cap L89, 2004.

“Whether or not the plaintiff’s member companies are lincensees having regard to the provisions of sections 7(b), 17, 18, 19, 20(1), 25 (1) and 27 of the National Lottery Act, 2005 and sections 12 (1), 14 (1), 15 and 16 of the Lagos State Lotteries Law, Cap L89, 2004.

“Whether having regards to the provision of Section 7 of the National Lottery Act, 2005, Section 9 of the Lagos State Lotteries Law Cap L89, 2004, part 2 of the Schedule to the Taxes and Levies (Approved List for Collection) Act, Cap T2, Laws of the Federation of Nigeria, 2004, the 1st to 3rd defendants can validly classify consummer sales promotion as lottery and impose lottery levies or dues on the plaintiff’s member companies in respect of sales promotional activities undertaken by them for their customers.”

The plaintiff filed the suit through its lawyer, Mr. Joseph Nwabike (SAN) on behalf of “over 2,000 companies across the various sectors of the Nigerian economy, including but not limited to the manufacturing, agriculture, mining, telecommunications, oil and gas, banking and other financial institutions, advertising, construction, aviation and transportation.”

The plaintiff asked for an order of the court setting aside all demand notices, assessments and/or computations of lottery levies and dues made by the defendants and their agents on its member companies for consumer sales promotional activities undertaken by them.

The plaintiff also prayed the court to restrain the defendants from acting pursuant to the National Lottery Act, 2005, the Lagos State Lotteries Law, Cap L89, 2004 and any related law to impose lottery levies on the its member companies on account of their consumer sales promotional activities.

The plaintiff further asked the court to grant a perpertual injunction restrainingg the agents of the defendants from harrassing, intimidating and shutting down its member companies’ offices on account of refusal or failure to remit lottery levies or dues imposed on them by the defendants for their periodic consumer sales promotional activities.

The plaintiff has, through an ex parte application, sought the leave of the court to serve the originating summons on the defendants outside the jurisdiction of the court.

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