House of Representatives Committee that investigated the activities of telecom operators in Nigeria has told the National Lottery Regulatory Commissions (NLRC) to end all existing lottery contracts between Nigerian operators and GSM companies.

According to news outlet This Day, Hon. Ahmed Abu, Chairman of the committee, said that the existing contracts that are now suspended were created in a breach of the National Lottery Act, therefore making them illegal. The breach involved a controversial sharing formula for lottery proceeds among stakeholders.

The bone of contention was that the National Lottery Act had already stipulated how revenues realised from lottery should be shared among stakeholders.

This Day reported that the revenue stipulated was 50% to the winner, 30% to the operator and 20% to the regulators. However, Nigerian lottery operators teamed up with GSM companies in order to further improve their winnings, and in doing so broke the law.

Moreover, the telecoms collected 70% of the total share, only leaving operators and the local commission with 30% to share between them. At the same time, operators said that they weren’t involved when deciding the number of shares that the telecoms collected.

In a meeting with the officials involved, Abu told the parties that they would have to find an amicable solution or else have it resolved in a public hearing. Abu also said that both parties should end the contracts with an immediate effect.