The Chamber of Indigenous Business & Investors (CIBI) has sharply criticised The Fourth Estate and the Media Foundation for West Africa (MFWA), accusing them of engaging in poor and unethical journalism in their recent investigative report on the National Lottery Authority’s (NLA) partnership with KGL Technology Limited.

According to the Fourth Estate, the NLA had awarded a lucrative GHS 3 billion business to KGL in exchange for just GHS 170 million annually under what it described as a 15-year contract signed in 2024.

But in a strongly worded response signed by Mr. Alistair Nelson, Executive Director of CIBI, described the report as “misleading, sensational, and grossly ignorant of lottery operations,” insisting that the NLA-KGL relationship is not a contract but a licensing arrangement legally backed by the National Lotto Act, 2006 (Act 722) and its regulations.

Licensing vs. Contract Dispute

CIBI stressed that KGL Technology Limited does not hold a procurement contract with the NLA but rather a license issued by the Authority’s Board, in line with sections 5–14 of Act 722 and Regulations 12–13 of L.I. 1948.
“All licensing agreements issued by NLA have never gone through procurement because they are not contracts but licenses,” the statement noted.

The group further pointed out that several companies, including Simnet Ghana Limited, Lots Services Ghana Limited, Alpha Lotto Limited, and long-standing Lotto Marketing Companies, already operate under similar long-term agreements with the NLA, some dating back decades.

The “GHS 3 Billion Business” Claim

CIBI also dismissed claims that the NLA had handed over a GHS 3 billion business to KGL.

It cited official revenue data showing that the NLA’s highest annual revenue was GHS 401 million in 2017, while between 2013 and 2020, the Authority generated a total of GHS 2.7 billion — an average of GHS 345 million per year.

During the same period, NLA paid out GHS 1.3 billion in winnings.
“The NLA has never generated GHS 3 billion in any single year since its establishment in 1957,” the group said.

Payments to the State

CIBI argued that the licensing arrangement with KGL has yielded far better returns for the state than the NLA’s own operations in the past. From 2013 to 2020, the NLA paid GHS 182 million into the Consolidated Fund. In comparison, CIBI noted, KGL has been paying GHS 170 million annually since 2019 — far surpassing NLA’s historical contributions.

Monopoly and Capacity Issues

Addressing concerns about exclusivity, CIBI clarified that each USSD and online lottery license has always been reserved for a single operator per product, citing examples such as *787# for Wotiriyie Lottery and *959# for NLA’s 5/90 game.

The group also emphasised that under Act 722, the NLA cannot directly sell lottery products or pre-finance operations, hence the reliance on licensed collaborators like KGL.

It added that KGL shoulders all operational risks, including IT infrastructure, marketing, payment of winnings, and daily fees to telecom providers.

Conclusion

CIBI described the Fourth Estate/MFWA report as “bogus and malicious,” urging the media organisations to correct the record.
“The NLA-KGL deal is one of the best arrangements in the Authority’s history,” the group concluded.