The National Lottery Authority (NLA) has paid its first dividend to the government since 2017, presenting a GH¢10 million cheque to the Ministry of Finance for onward payment into the Consolidated Fund.
The payment marks the return of direct dividend contributions by the Authority to the state after several years, with the NLA management saying ongoing reforms are expected to significantly increase its contribution to national revenue.
Presenting the cheque to Finance Minister Dr Cassiel Ato Forson, Director-General of the NLA, Alhaji Mohammed Abdul-Salam, said the payment demonstrated that reforms at the Authority were beginning to yield results.
He said the NLA was reviewing its commercial arrangements with private lottery operators to ensure that revenue-sharing agreements reflected international best practice and what he described as the state’s rightful position as owner and regulator of the national lottery.
“We have undertaken a deliberate programme of reform,” he said, adding that the Authority was committed to ensuring that the national lottery delivered greater value to the state.
NLA expands revenue monitoring
Board Chair of the NLA, Mr Frederick Amissah, said the Authority was introducing independent real-time revenue monitoring across its licensing channels to make transactions more visible, verifiable and accountable.
He said the NLA was also moving towards an open and competitive licensing framework designed to end exclusivity, attract credible operators and broaden the Authority’s revenue base.
The reforms are expected to create additional revenue streams, including a proposed Sports Fund Lottery being developed in collaboration with the Ghana Sports Fund.
The dedicated daily draw is expected to support sports development while generating additional resources for national development.
Alhaji Abdul-Salam said the GH¢10 million payment should be regarded as the beginning of a renewed contribution to the national purse, with payments expected to increase as the reforms mature.
He also disclosed that the NLA Board had approved GH¢2 million to support the MahamaCare policy as part of the Authority’s social interventions.
Government seeks bigger returns
Dr Forson said the dividend was significant because it marked the resumption of payments to the state after years of absence.
He recalled that during his tenure as Deputy Finance Minister from 2013 to 2016, the NLA regularly declared dividends to government.
According to him, the Authority had not presented a dividend to the Ministry of Finance from 2017 until the latest GH¢10 million payment.
The Finance Minister said government would work with the NLA and the Attorney-General’s Office to review existing commercial agreements that he believes have resulted in an excessive share of lottery revenues going to other entities.
He said the review was expected to be completed this month.
Dr Forson stressed that the state expected substantially more than GH¢10 million from the NLA.
“The taxpayer deserves more than GH¢10 million by far. It is a good start, but you have to do more,” he said.
He also urged the Authority to concentrate on its core mandate and avoid undertaking activities that could amount to quasi-fiscal operations.
He said surplus funds generated after meeting the NLA’s operational requirements should largely be transferred to government, which has the mandate to provide public goods and social services.
NLA law to be modernised
Dr Forson further announced plans to review and modernise the legal framework governing the NLA, noting that its enabling legislation had not been amended since 2006.
He said officials of the Ministry of Finance would work with the Authority to identify gaps in the existing law and make proposals to bring the legislation in line with the requirements of a modern national lottery regulator.
The Minister commended the NLA Board and management for the reforms and urged the Authority to sustain the renewed focus on improving its contribution to the national purse.
Source: businesspostonline
