The Federation of State Gaming Regulators of Nigeria (FSGRN) has voiced strong opposition to the Federal Competition and Consumer Protection Commission’s (FCCPC) proposed Sales Promotion Regulations, 2026. The federation warned that the new provisions represent an attempt to reintroduce federal lottery regulation through the “back door.”
The FSGRN contends that the proposed regulations by the FCCPC would allow the federal agency to exert control over activities that fall strictly under the mandate of state gaming regulators. This move is viewed by the federation as an encroachment on the constitutional powers granted to states to manage and regulate gaming and lottery activities within their respective jurisdictions.
The dispute highlights a growing tension between federal consumer protection agencies and state-level authorities over the oversight of the multi-billion naira gaming industry. The federation expressed its concerns regarding the FCCPC Sales Promotion Regulations, 2026, arguing that the framework would enable the federal commission to regulate promotional games of chance, which are fundamentally lottery-based activities.
Conflicts over regulatory jurisdiction
The FSGRN’s objection centres on the specific language used in the FCCPC’s proposed framework. The federation maintains that many sales promotions offered by businesses in Nigeria include elements of chance, such as lucky draws or promotional prizes, which are inherently lottery-style operations. By categorising these as “sales promotions,” the FCCPC would effectively be performing the functions of a lottery regulator, a role the federation says belongs to the states.
In Nigeria, the regulation of gaming is a complex interplay between federal and state laws. While the federal government maintains certain oversight roles, individual states have established their own regulatory boards to oversee the licensing, taxation, and monitoring of gaming operators. The FSGRN, which represents these state bodies, argues that the FCCPC’s move threatens to create a dual-regulation environment, causing confusion for operators and legal uncertainty for investors.
Industry observers suggest that if the FCCPC proceeds with the 2026 regulations without significant amendments, the gaming sector could face a period of intense litigation. Operators currently licensed by state boards may find themselves subject to conflicting rules from the federal commission, potentially leading to fines or license revocations if they fail to comply with new federal standards that overlap with state mandates.
The FCCPC’s primary mandate is to protect consumers from unfair trade practices and ensure healthy competition in the marketplace. From the commission’s perspective, regulating sales promotions is a necessary tool to prevent fraudulent schemes and ensure that promotional activities do not exploit vulnerable consumers through misleading tactics.
However, the FSGRN argues that these consumer protection goals should not come at the expense of the existing regulatory order. The federation has called for a collaborative approach, urging the FCCPC to engage with state gaming regulators to ensure that the new rules do not overlap or conflict with state-level jurisdictions.
The standoff remains unresolved as the 2026 regulations move through the administrative process. Stakeholders in the gaming and retail sectors are monitoring the situation for any changes to the proposed provisions or signs of high-level mediation between the federal and state governments.
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