Presidency clears NLA-KGL deal but calls for improved revenue terms

The Director-General of the National Lottery Authority (NLA), Mohammed Abdul-Salam, has disclosed that negotiations are ongoing to review and potentially renegotiate a key contractual agreement with KGL Technology Limited, following a directive from the Presidency.

Speaking in an interview on Channel One TV on April 21, Mr Abdul-Salam outlined the steps taken so far, indicating that the review process had involved multiple state institutions, including the Ministry of Finance, the Attorney-General’s Department and the Presidency.

He explained that the matter was initially referred to the Attorney-General by the NLA board to obtain legal clarity on the agreement, after which the Presidency directed the formation of a committee to undertake a comprehensive review of the contract.

According to him, the committee has completed its work and submitted its findings, leading to a directive from the Presidency affirming that the NLA acted within its legal mandate in entering into agreements with private sector partners such as KGL to support regulation and operations within the lottery industry.

Despite this endorsement, the NLA boss indicated that concerns remain over the financial terms of the arrangement, particularly the revenue-sharing structure, which the Authority believes does not adequately reflect the State’s interests.

Mr Abdul-Salam stressed that the NLA is seeking improved financial returns from the agreement, noting that the ongoing negotiations are aimed at securing a more favourable share of proceeds for the State.

He said the review process was extensive and required engagement at the highest levels of government, underscoring the importance of ensuring that public-private partnerships within the lottery sector deliver optimal value.

The outcome of the renegotiation is expected to have significant implications for revenue mobilisation within the gaming industry, as well as broader efforts to strengthen oversight and accountability in state-linked commercial agreements.