National Lottery Fund Spends Revenue on Developmental Projects – CSOs Tell House of Reps
The Center for Peace, Transparency, and Accountability (CPTA) says the National Lottery Trust Fund (NLTF) spends a larger percentage of its Internally Generated Revenue (IGR) on construction, education and other intervention projects.
The Executive Director of the CPTA, Comrade Patrick Ogheneyero, disclosed this on Thursday in Abuja, refuting the allegation of misappropriation of funds by the NLTF.
The House of Representatives Committee on Finance had alleged that the NLTF failed to justify the spending of its internally generated revenue in 2022, adding that the agency spent the money without budgetary approval.
Debunking the allegation, CPTA said there was no single evidence to prove that an act of misappropriation was committed by the NLTF while discharging its enshrined mandate.
According to the CPTA, the NLTF’s actions are in line with the provisions of the Act that established the agency as overseer and revenue generation body around the gaming industry in Nigeria.
Specifically, Section 40 of the National Lottery Trust Fund Act gives its management the power to use the fund as an intervention fund in specified areas of vital human interests aimed at improving the citizens lives and welfare through provision of infrastructural facilities across various developmental sectors.
According to the Act, the management needs only the approval of the Board of Trustees of the fund to spend the money it generated.
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Section 40 of the Act reads thus; “The proceeds of the Trust Fund established under section 35 of this Act shall be applied, from time to time – the Trust to fund projects approved by the President, on the recommendation of the Board of Trustees, to be in the interest of the Nigerian community and such projects shall include but not limited to projects for the advancement, upliftment and promotion of sports development, education, social services, public welfare and relief, and management of natural disasters in Nigeria,”
“It is against this background that the CPTA wishes to make its position clear on this matter. Thus;
“Firstly, instead of the House Committee members on Finance to subject NLTF management to media trial without giving them adequate opportunity to make a defense, it will be of good national interest for the Committee to go back to the floor of the House to make amendments on the provisions of the Act that established NLTF and gave it such power to spend IGR without National Assembly approval, provided they think it is the better way to go in as much as it concern the interest of teaming Nigerian populace.
“Secondly, it is also pertinent that before the Committee threw such tantrums into the public and caused unnecessary chaos, they ought to first investigate whether the NLTF spend the money outside its jurisdiction as against those areas approved and outlined in the Act that established the Fund.
“Thirdly, it is on record that a larger percentage of the money spent by the NLTF were used in conducting Zonal Intervention Projects (ZIPs) and National Assembly members’ constituency projects of which the Committee and the rest of floor members are true beneficiaries.
“Finally, it is of paramount importance to stressed that, the Committee ought to know that 40% out of the entire revenue being generated by the Fund are deducted from source and domicile in the Central Bank of Nigeria (CBN) as stipulated by the finance Act.”
