Hot SourceThe Chamber of Indigenous Business and Investors (CIBI), led by Alistair Nelson, has taken issue with an investigative report by the Fourth Estate and the Media Foundation for West Africa (MFWA), describing their findings on the National Lottery Authority’s (NLA) agreement with KGL Technology Limited as misleading and ethically questionable.
The Fourth Estate and the Media Foundation for West Africa (MFWA), report alleged that the NLA had effectively handed over a business worth more than GHS 3 billion annually to KGL in return for just GHS 170 million a year. According to the investigation, the contract, signed in 2024, spans 15 years with an automatic five-year renewal.
On 6 February 2025, the immediate past Director-General of the NLA and current Member of Parliament for Akuapem North, Samuel Awuku, delivered his maiden statement in Parliament, calling for measures to maximise lottery proceeds for national development. Citing international examples, including the use of lottery funds in constructing the Great Wall of China, he urged Ghana to adopt global best practices to combat illegal lottery operations and boost revenue through innovative fiscal strategies.
However, the Fourth Estate report claimed that during his tenure at the NLA, Mr Awuku had approved the most lucrative of the Authority’s businesses, the 5/90 online lottery, for exclusive operation by KGL at what critics have described as a giveaway price.
The investigation traced the contract back to 2019, when then-Director General Kofi Osei Ameyaw first signed a three-year agreement with KGL.
When that expired in 2022, Mr Awuku and his board extended it for 10 years. In 2024, before the new term had run its course, the board, chaired by Gary Nimako Marfo, signed a fresh 15-year contract with KGL, granting the company exclusive rights to operate the 5/90 lottery via USSD short code, renewable automatically for another five years.
Two further agreements allowed KGL to operate the 5/90 lottery in Nigeria and Côte d’Ivoire for 10 years each.
Figures cited by the Fourth Estate suggest that in 2024, KGL earned over GHS 3 billion from its operations—more than GHS 250 million monthly, while paying the NLA only GHS 157.6 million for all three contracts. This amounted to just 5.2% of KGL’s declared revenue.
Critics argue this arrangement contravenes the National Lotto Act, 2006 (Act 722), which reserves lottery operations exclusively for the NLA and only permits private companies to act as Lotto Marketing Companies (LMCs). Under the law, all sales revenues must pass through the NLA’s Lotto Account, with the Authority paying LMCs a commission, typically 25%. In KGL’s case, however, revenues bypassed the Lotto Account, and the company paid the NLA what the contract termed a “revenue share” of just 5.2%.
The Fourth Estate also highlighted a decline in the NLA’s income, from GHS 366 million in 2015 to GHS 296.58 million in 2023. Sources suggested the Authority’s financial situation in 2024 had not improved.
Defending the deal, Mr Awuku insisted he had left the NLA in a stronger financial position, claiming he renegotiated KGL’s payments from GHS 26 million to GHS 173 million. However, he admitted that under his leadership the NLA had no access to KGL’s sales data, raising questions about how payments were calculated.
KGL Group Chairman, Alex Apau Dadey, told the Fourth Estate that while the company made over GHS 3 billion in 2024, it paid GHS 87 million in taxes to the Ghana Revenue Authority, GHS 176 million to the NLA, and retained only GHS 70 million as profit. He declined to provide detailed expenditure figures, saying: “That data, you are not going to get it.”
Mr Dadey further argued that the NLA lacked the technical capacity and resources to manage such a system independently. “This is not a kid’s game. The government doesn’t have the capacity to do what we do. This is technology, and we hold the highest data in this country,” he said.
The Fourth Estate’s request for comment from the NLA’s immediate past board chairman, Gary Nimako Marfo, was declined, with Mr Marfo directing journalists to the minutes of the board.
CIBI, however, dismissed the Fourth Estate’s findings as sensational and reflective of a poor grasp of how the lottery industry functions. The Chamber maintained that the report overlooked key facts and data from the NLA, accusing the investigative outlet of “gross ignorance” and unethical journalism.
Below are details of the NLA-KGL 15-year Contract as explained by CIBI;
KGL Technology Limited is not the only company having a 15-year agreement with the National Lottery Authority (NLA). For the avoidance of doubt:
1. Lots Services Ghana Limited had a 15-year contract with NLA in 2013, subject to automatic renewal of another 15 years after expiration.
2. Simnet Ghana Limited had a 10-year contract with NLA in 2015, subject to automatic renewal for another 10 years after expiration.
3. Alpha Lotto Limited and some Private Lotto Operators signed a 10-year contract with NLA in 2024, subject to automatic renewal after expiration.
4. All the Lotto Marketing Companies currently doing business with NLA in the Kiosks and using Point of Sale Terminals (POSTs) were issued licenses in 2006 in accordance with Section 58 (Transitional Provisions) and 57 of the National Lotto Act, 2006 (Act 722). These Lotto Marketing Companies have been in operation for the past 19 years.
5. There are also Lotto Receivers who were previously working with the then Department of National Lotteries (DNL), and these Lotto Receivers were admitted as Lotto Marketing Companies under the Act 722. These companies have been doing business with the National Lottery Authority (NLA) for the past 40-50 years.
Contract of KGL
KGL Technology Limited has no “Contract” with the National Lottery Authority (NLA).
The arrangement between NLA and KGL is a Licensing Agreement issued by the Board of the National Lottery Authority (NLA) in accordance with Sections 5, 6, 7, 8, 9, 10, 11, 12, 13, & 14 of Act 722, and Regulations of 12 & 13 of L. I. 1948.
All licensing agreements issued by NLA to Lotto Marketing Companies, Collaborators and Private Lotto Operators have NEVER gone through the procurement process since they are NOT procurement contracts but rather licensing agreements in accordance with Act 722 and L.I. 1948.
Therefore, it is very misleading for the Fourth Estate and Media Foundation for West Africa (MFWA) to conclude that the NLA-KGL deal is a contract. That is highly unprofessional and unethical, rendering the submission unacceptable.
NLA Gave Away A GHS 3 Billion Business to KGL for Peanuts
For the avoidance of doubt, the National Lottery Authority (NLA) was NOT operating any GHS 3 billion business before KGL started operating in Ghana. The highest gross revenue ever generated by NLA before KGL was GHS 401, 711, 318 (400 Million Ghana Cedis) in 2017. As a matter of fact and backed by data, the NLA has NEVER generated GHS 3 billion annually since its establishment in 1957.
The National Lottery Authority (NLA) used 8 years to generate GHS 2, 766, 159, 507 (2.7 billion Ghana Cedis), and out of the GHS 2.7 billion, the NLA used GHS 1, 378, 104, 374 (1.3 billion) to pay winning tickets to the staking public.
Below are the revenues generated by the National Lottery Authority (NLA) from 2013 to 2020 before the active operationalization of the KGL licensing agreement:
2013 – GHS 255, 229, 663
2014 – GHS 315, 918, 378
2015 – GHS 365, 529, 893
2016 – GHS 397, 750, 549
2017 – GHS 401, 711, 318
2018 – GHS 381, 038, 324
2019 – GHS 349, 220, 308
2020 – GHS 299, 761, 074
Total Revenue generated by NLA for 8 years (2013-2020) = GHS 2, 766, 159, 507(2.7 billion).
Therefore, Fourth Estate Lied to the public about annual revenue of a GHS 3 Billion business of NLA being given away to KGL based on the aforementioned data.
Below are the Lotto Prizes Payments made by NLA from 2013-2020:
2013 – GHS 122, 407, 648
2014 – GHS 156, 414, 997
2015 – GHS 172, 349, 847
2016 – GHS 203, 687, 057
2017 – GHS 209, 545, 892
2018 – GHS 179, 326, 708
2019 – GHS 171, 375, 506
2020 – GHS 162, 996, 719
Total Payments of Lotto Prizes (Winners of National Lotto) for 8 years = GHS 1,378,104,374 (1.3 billion).
This should inform the Fourth Estate and Media Foundation for West Africa (MFWA) that Lotto money is NOT the same as revenue generated by GRA. NLA used 8 years to generate 2.7 billion and pay 1.3 billion to the winners of the National Lotto within that same 8-year period.
GHs 170 million Peanuts Paid by KGL to NLA
So far, the NLA-KGL deal is the best at the NLA, and the following are the facts.
1. From 2013-2020(8years), NLA paid only GHs 182, 009, 000(182 million Ghana Cedis) to the Consolidated Fund. Below is the breakdown of payments to the Consolidated Fund by NLA:
2013 – GHs 25, 000, 000
2014 – GHs 11, 850, 000
2015 – GHs 33, 270, 000
2016 – GHs 16, 000, 000
2017 – GHs 30, 000, 000
2018 – GHs 33, 927, 000
2019 – GHs 16, 962, 000
2020 – GHS 15, 000, 000
The above figures indicate that, the annual payment of GHS 170 million by KGL to the Consolidated Fund through NLA exceeds all the individual figures paid by NLA itself to the Consolidated Fund from 2013-2020.
For the avoidance of doubt, the amount of money paid by KGL to NLA from 2019-2024 (5years) EXCEEDS the amount of money paid by NLA itself to the Consolidated Fund from 2013-2024 and this is the ABSOLUTE FACT.
Therefore, everything shows that the NLA-KGL deal is one of the best regardless of the propaganda by the Fourth Estate and Media Foundation for West Africa (MFWA).
Does NLA Have the Capacity to Operate the 5/90 USSD Short Code?
1. In accordance with Act 722 and L. I. 1948, the NLA cannot sell lottery products/tickets directly to the staking public as a Lotto Marketing company.
2. The NLA has to depend on Lotto Marketing Companies or Collaborators or Private Lotto Operators to sell lottery products/tickets to the public.
3. Under Act 722 and L. I. 1948, NLA has no power to pre-finance Lottery operations.
Is KGL the Only LMC ever to Have Operated 5/90 USSD?
1. In 2008, NLA in partnership with a private company operated NLA 5/90 USSD termed as “Mobi Game 2 Sure” but the project FAILED.
2. In 2015, NLA in partnership with a private company operated “Mobile 5/90” but the project FAILED.
3. In 2019-2020, NLA in partnership with a company operated NLA 5/90 USSD(*890#) but the project FAILED.
4. In 2020- 2021, Alpha Lotto Limited started the illegal operations of NLA 5/90 USSD(*896#) but the short code was legally shut down by NLA and NCA.
Why Exclusive License to KGL?
1. The National Lottery Authority(NLA) has NEVER given multiple USSD and Web Online lottery license agreements to Lotto Marketing Companies or Collaborators or Private Lotto Operators to operate one lottery game or product.
2. All License Agreements based on USSD and Web Online are Exclusively preserved for the operation of one particular lottery product.
Below are some of the examples of USSD and Web Online EXCLUSIVELY operating a specific lottery product or game:
(a). 787 is exclusively for Wotiriyie Lottery
(b). 766 is exclusively for Atena
(c). 959 is exclusively for NLA 5/90
(d). 446 is exclusively for Daywa Lotto 5/39
(e). 946 is exclusively for Pick4/Pick1
(f). 987 is exclusively for Lucky 3
Therefore, it is extremely FALSE that KGL is unfairly enjoying a monopoly of NLA 5/90 USSD and Web Online.
Payments to the Lotto Account
1. In fulfilment of Section 32 of Act 722, KGL makes quarterly payments to the NLA for onward submission to the Lotto Account as a requirement for the pre-financing of the lottery operations.
2. In alignment with Regulations 13 and 14 of L. I. 1948, KGL is empowered to pay winners of National Lotto via the *959# short code.
3. In fulfillment of Section 2(4) of Act 722, KGL is responsible for all the losses on the *959# short code, and all the losses of KGL throughout the operations of NLA 5/90 USSD and Web Online will NOT be compensated by the State or from the Lotto Account provided for under Section 32 of Act 722.
Conclusion
It is very imperative for the Fourth Estate and Media Foundation for West Africa(MFWA) to understand that, the operations of KGL never started from GHS 3 billion, and also, if KGL stops operations, that supposed GHS 3 billion business would NEVER be automatically available for the State.
Also, we would like the Fourth Estate and Media Foundation for West Africa(MFWA) to remember that NLA has ZERO(0) investments when it comes to the:
1. Cost of IT infrastructure and its periodic maintenance.
2. Cost of daily payment of WINNING TICKETS to the staking public. KGL has been responsible for all the Liabilities and Risks associated with the operations of 5/90 USSD.
3. Cost of Marketing
4. Cost of Technical Fees
5. Daily operating FEES charged by MTN, Telecel and AirtelTigo
Payments of Taxes to GRA by KGL
From 2019-up-to-date, KGL has NEVER defaulted in the payment of taxes to the Ghana Revenue Authority(GRA), and the records are available at the Ghana Revenue Authority(GRA).
Finally, the investigation by the Fourth Estate and Media Foundation for West Africa (MFWA) is completely bogus, and is believed to have been executed with malicious intentions.
….Signed…
Mr Alistair Nelson
Executive Director
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