The Presidency backs NLA-KGL Contract – NLA BOSS

The National Lottery Authority (NLA) has the legal mandate to enter agreements with private partners like KGL Technology Limited, but the current revenue-sharing structure must be improved to give the State a larger share.

That’s the update from NLA Director-General Mohammed Abdul-Salam, who spoke on Channel One TV’s _Face to Face_ on Tuesday, April 21, following President John Dramani Mahama’s directive to review the controversial NLA-KGL contract.

Review Process Completed
Abdul-Salam said the review process involved “several levels of engagement” with key state institutions, including the Ministry of Finance, the Attorney-General’s Department, and the Presidency.

The process began after the NLA board wrote to the Attorney-General for clarification on its position regarding the KGL agreement. The Presidency then directed the formation of a committee to conduct a comprehensive review.

“Those processes have been walked, there is a completion,” Abdul-Salam confirmed.

Presidency: NLA Has the Mandate
According to the Director-General, the Presidency has since issued a directive affirming that the NLA is “within its mandate” to enter agreements with KGL and other private firms for regulatory and operational purposes in the lottery sector.

That clarification settles questions about the legality of NLA partnering with private operators on the 5/90 digital lottery.

But Revenue Share Still an Issue
Despite the mandate, Abdul-Salam stressed that concerns remain over how much the State earns from the current deal.

“In terms of the revenue share… the NLA needed to gain much more from that contractual agreement than it is presently having,” he said. “The State stands to benefit.”

Renegotiation Underway
With the committee’s work done, negotiations are now ongoing to secure “an improvement in the share of the State in terms of what monies come to us,” Abdul-Salam added.

The goal, he said, is a more favourable revenue structure that increases returns to the national purse while maintaining the operational partnership.

Background
The NLA-KGL agreement, which gives KGL Technology Limited control of the 5/90 lottery’s digital and USSD channels, has faced public criticism over alleged monopoly and limited transparency. President Mahama recently ordered a review and possible renegotiation of the deal amid calls from political leaders and industry players to open the sector to competition.

Tuesday’s comments suggest the government intends to keep the partnership model but rebalance the financial terms.

What’s Next
The NLA did not give a timeline for concluding the renegotiations. However, Abdul-Salam’s remarks indicate the review phase is over and talks are now focused strictly on revenue.