GGAGG Calls for Shutdown of NLA Over Alleged State Capture and Private Enrichment

The Good Governance Advocacy Group Ghana (GGAGG) has issued a press statement urging the immediate shutdown of the National Lottery Authority (NLA) due to alleged state capture and private enrichment. According to GGAGG, the NLA has been deliberately collapsed to pave the way for its takeover by a private enterprise, KGL.

Allegations of State Capture

The group alleges that the current arrangement between NLA and KGL is illegal and unethical, with KGL being granted exclusive rights to operate the 5/90 lottery game in the digital space, violating Act 722. This decision, made in 2021, is said to be driven by political state capture and private enrichment, furthering the troubles faced by NLA.

Consequences of Inaction

GGAGG warns that if this situation continues, Ghana stands to lose billions in public revenue annually, collapse of legal and regulatory authority at NLA, undermining of fair competition and market access, violation of Act 722, and erosion of public confidence in democratic governance.

Demands for Reform

The group is calling on the current Managing Director of the NLA to take urgent and public steps to:
Cancel the Exclusive License: Cancel the illegal exclusive license granted to KGL
Restore Legal Compliance: Restore compliance with Act 722
Independent Audit: Commission an independent forensic audit of all contracts and transactions between NLA and KGL
Re-establish NLA’s Sovereignty: Re-establish the NLA as a sovereign state institution, free from private capture and political interference

Failure to take these corrective actions must lead to the immediate shutdown or dissolution of the NLA, as it no longer serves its lawful purpose nor the people of Ghana. [1]

Below is the full release;

Good Governance Advocacy Group Ghana (GGAGG)

THE CREATION OF A SPECIAL PURPOSE VECHICLE FOR STATE CAPTURE
Good Morning Ladies and Gentlemen of the 4TH arm of government, I stand before you, today, as a patriotic Ghanaian, in shock, tremor, trauma, heartbroken and highly disturbed, as I deliver one of the greatest state-capturing scandalous deals ever to have hit our beloved vulnerable country, Ghana, our motherland.
For me, patriotism, vigorous support for our dear country is very key to the collective success and progress of our dearest country.
As a patriotic citizen, I find my work as a public advocate and an investigative journalist a service to God and Ghana; our motherland.
My work involves;
1. Probing specific topics,
2. Uncovering wrongdoing,
3. Exposing hidden information,
4. Extensive research,
5. Painstaking analysis,
6. In-depth investigation, etc.
All aimed at revealing facts that might otherwise remain hidden from the general public thereby protecting the rights and interests of individuals, entities, etc. who may be unable to advocate for themselves.
Ladies and Gentlemen of the media, I am discussing the National Lottery Authority (NLA) which is under siege by what I call a criminal syndicate that was formed in the erstwhile Nana Addo Dankwa Akufo-Addo- Bawumia led government with the sole aim to totally take over a State-owned company through an illegal means.
Friends, as you may be aware, National Lottery Authority (NLA) date back to 1958, during the presidency of Dr. Kwame Nkrumah, Ghana’s first President. That year, the government established the Department of National Lotteries (DNL) under the Lotteries Act, 1958 (Act 37), with the primary objective of generating revenue for the state through a legal and regulated lottery system.
Operating under the Ministry of Finance, the DNL directed profits from lottery operations toward public sector development projects, including initiatives in education and healthcare.
REFORMS
In 2006, a major reform was undertaken to modernize and restructure lottery operations in Ghana. Parliament the passed the National Lottery Authority Act, 2006 (Act 722), which replaced the DNL with the National Lottery Authority (NLA).

Under Section 2 of the reformed Act, National Lotto Act, 2006 (Act 722), “the core objective of the NLA is to raise revenue for national development through the regulation, supervision, and conduct of lottery and related games in a responsible and transparent manner.” Sadly, the NLA has abandoned this legal and moral obligation.
The reform granted the NLA greater autonomy and a more commercially oriented mandate. The NLA was tasked not only with conducting national lotteries but also with regulating and supervising all lottery operations in the country.
Under the new reform, the NLA was established as a corporate entity with a Board of Directors and a Director-General, enjoying operational independence while remaining under the policy oversight of the Ministry of Finance.
Under Act 722, the National Lottery Authority (NLA) is mandated to work with license entity known as Lotto Marketing Companies (LMCs) for the resale of its products. The Act requires that LMCs pre-finance the purchase of lottery products from the NLA before reselling them.
Following this reform, the NLA recognized the need to leverage technology to enhance and automate its operations. To achieve this, it began seeking Technical Service Providers (TSPs) capable of deploying innovative digital solutions.
In 2008, the NLA engaged SIMNET Ghana Limited—its first Technical Service Provider. SIMNET, a company majority-owned by the Social Security and National Insurance Trust (SSNIT), was brought on board as part of a broader modernization initiative. This partnership marked a significant shift from analogue lottery draws and sales processes to a centralized, digitized platform designed to streamline and improve operational efficiency.
In 2015, NLA added Lots Limited as a second Technical Serive Provide to further enhance it digital operations.
With both SIMNET and LOTS actively supporting its modernization agenda, the NLA significantly strengthened its technical capacity to drive and expand its lottery operations.
The Beginning of NLA’s Collapse
From its inception up until 2017, the National Lottery Authority (NLA) consistently operated profitably and contributed to the State’s Consolidated Fund. In 2006, the NLA ran lottery games only on Saturdays, but by 2017, it had expanded to operate seven days a week. During this period, the NLA was known for promptly paying winnings to its stakers and commissions to its Lotto Marketing Companies (LMCs).
However, the Authority’s gradual decline began during the tenure of the New Patriotic Party (NPP), marked notably by the appointment of Kofi Osei-Ameyaw as Director-General.
The leadership of Kofi Osei-Ameyaw as Director-General of the National Lottery Authority (NLA), spanning from 2017 to 2021, was widely regarded as a turning point that marked the beginning of a period of significant institutional decline.
While his appointment initially came with high expectations for reform, modernization, and
revenue growth, his administration was ultimately characterized by a series of controversial
decisions, administrative lapses, and governance challenges that contributed to the erosion of the NLA’s operational efficiency, stakeholder trust, and financial stability.
Under Osei-Ameyaw’s, the working relationship between the NLA and its core stakeholders— particularly Lotto Marketing Companies (LMCs), Technical Service Providers (TSPs), and internal staff—deteriorated significantly. Several LMCs also reported being unfairly treated, with some losing their licenses or contracts abruptly and without due process.
These actions caused widespread dissatisfaction among LMCs, many of whom play a crucial role in the marketing and distribution of NLA products. The breakdown in these relationships disrupted sales channels, reduced efficiency, and ultimately affected revenue generation.
Osei-Ameyaw’s administration also became known for entering into a number of controversial agreements with third-party vendors, particularly in the area of technology and digitization.
While modernization was a key goal, many of these contracts were signed without adequate
transparency or clear value justification. Some appeared to overlap with existing services or
created unnecessary redundancies, leading to suspicions of mismanagement and favoritism.
These deals placed further financial strain on the organization and raised questions about procurement integrity and strategic planning.
The most damaging of all, was the NLA’s growing inability to meet its financial obligations during this period. There were repeated delays in the payment of lottery winnings to stakers as well as commissions to LMCs.
These delays not only harmed public confidence but also disrupted the income of thousands of people who relied on timely payments from the NLA.
By the time Osei-Ameyaw left office in 2021, the NLA—once a thriving and reputable state-owned enterprise known for its contributions to the national coffers—was grappling with serious financial, operational, and reputational challenges.
All that happened under Osei Ameyaw was delibreate and was purposely meant to collapse the state owned enterprise to pave way for it capture by a private entrepresie.
The Coming in of KGL to further Collapse NLA for Takeover
KGL entered the lottery market, before Osei-Ameyaw left office, with a private product known as Lucky 3, which failed to succeed commercially. Subsequently, KGL sought to sell the traditional 5/90 game and did so in violation of Act 722, to which KGL was issue with a penalty NLA.
Sammy Awuku’s tenure as Director-General of NLA starting in August 2021 following the resignation of Kofi Osei-Ameyaw, was expected to mark a reform phase and restore stability to the Authority.
The Final Nail in the CofÞn
Instead of reversing the decline, Sammy Awuku’s administration continued and even deepened some of the structural and policy issues that had plagued the NLA, further contributing to its ongoing collapse.
Rather than engaging KGL lawfully through a transparent LMC framework, Sammy Awuku Ñ in violation of Act 722 Ñ granted KGL exclusive rights to operate 5/90 in the digital space.
This is the beginning of the creation of the speical purpose vechicle for state capture.
This decision, made in 2021, was not driven by national interest but by political state capture and private enrichment – futhering Osei Ameyaw’s already existing troubles for NLA.
Since then, NLA has collapsed and ceased to function as an independent public regulator. The institution now borrows money from KGL to survive.
Legal Violations: How KGL’s State Capture Agenda Contravenes Act 722
The current arrangement between NLA and KGL is not only unethical Ñ it is illegal.
1. Section 2(2) of Act 722 states clearly that “the Authority shall be the only body responsible for the conduct of the National Lotto.”
2. Section 15 reinforces this, declaring that “the Authority is the sole institution authorized to issue coupons for the National Lotto and shall determine the number, type, and denomination of such coupons.”
3. Section 5(1) goes further to specify that only a Licensed Marketing Company (LMC) can sell coupons on behalf of NLA in return for a commission Ñ no other private entity has this right under the law.
Despite this, KGL Group has been granted exclusive rights to sell 5/90 lottery games digitally, a role that directly violates all three of the above provisions. KGL is neither the NLA, nor an LMC under the law, yet it currently:

<span;><span;>- Sells National Lotto products (specifically 5/90),

<span;><span;>- Collect proceeds of NLA’s without pre-finance nor logging such procceds with NLA

<span;><span;>- Pays winning in contravention with the law

This entire arrangement is illegal and amounts to a privatized takeover of a public mandate. It has not been sanctioned by any legislative reform, nor by a public competitive process.
The Cost of Inaction: Billions in Lost Revenue
NLA has massive untapped potential. If restored to legal and transparent operation, it could:
– Generate at least GHS 6 billion annually in revenue,
– Deliver over GHS 3 billion in gross profit, and
– If properly optimized, earn up to GHS 12 billion in revenue, with as much as GHS 5
billion in profits annually for national development.
These funds could significantly boost the Consolidated Fund, helping finance critical sectors such as healthcare, education, infrastructure, and youth employment.
Instead, a private monopoly now benefits from what should be national income.

What Ghana Stands to Lose if This Continues:
– Billions in Public Revenue Lost Annually
– Collapse of Legal and Regulatory Authority at NLA
– Undermining of Fair Competition and Market Access
– Violation of Act 722 and Entrenchment of State Capture
– Erosion of Public Confidence in Democratic Governance
Our Demands
We are calling on the current Managing Director of the NLA to take urgent and public steps to:
1. Cancel the illegal exclusive license granted to KGL.
2. Restore legal compliance with Act 722, particularly Sections 2(2), 5(1), and 15.
3. Commission an independent forensic audit of all contracts, transactions, and liabilities between NLA and KGL.
4. Re-establish NLA as a sovereign state institution, free from private capture and political interference.
Failure to take these corrective actions must lead to the immediate shutdown or dissolution of the NLA, as it no longer serves its lawful purpose nor the people of Ghana.
End the KGL monopoly. Restore the NLA. Or shut it down.