The Director-General of the Cross River State Lotteries and Gaming Agency, Mr. Michael Eja, says the newly introduced reciprocity licensing framework by the Federation of State Gaming Regulators of Nigeria (FSGRN) will expand revenue streams for state governments and strengthen investor confidence in Nigeria’s gaming sector.
Speaking with journalists in Lagos, Eja explained that the federation — which currently has 25 member states — designed the reciprocity system to eliminate duplicate licensing, enhance regulatory efficiency, and promote a unified investment climate for gaming operators.
A Single License for Multiple States
According to Eja, the new framework ensures that any gaming license issued must be jointly endorsed by all member states.
This means operators can now run their businesses seamlessly across participating states without applying for separate licenses in each jurisdiction.
He also highlighted that the revenue-sharing model guarantees every state benefits financially while still maintaining its powers of regulation, monitoring, and enforcement under state laws.
“The real innovation here is in the revenue model.
Eja stated.
By harmonising licensing and sharing revenues, states will see a measurable increase in internally generated revenue (IGR) while providing clarity and certainty to investors,”
Gaming Industry Revenue Potential
Eja noted that the reciprocity framework could transform Nigeria’s gaming industry into a multi-billion-naira revenue source for sub-national governments, given the sector’s rapid growth and investor interest.
He called on state governors, attorneys-general, and lawmakers to support the initiative, emphasizing that it could position Nigeria among Africa’s leading regulated gaming markets.
Compliance Reminder for Businesses
The DG also urged banks, telecommunications firms, and food & beverage companies planning promotional campaigns in Cross River State during the festive season to obtain the necessary licenses from the Agency before launching such activities.
“This measure is to ensure proper regulation, safeguard consumer interests, and prevent avoidable litigation,
Said the DG
Background: Why the FSGRN Framework Matters
Until recently, Nigeria’s gaming regulations — covering lotteries, sports betting, and casinos — were fragmented.
Each state had different licensing requirements, forcing operators to apply separately in multiple states, leading to higher fees, more paperwork, and long waiting times.
For example, a license from the National Lottery Regulatory Commission (NLRC) did not authorize operations in Lagos State without an additional license from the Lagos State Lotteries and Gaming Authority, as required under the Lagos State Lotteries and Gaming Authority Law 2021.
Section 33(3) of that law prohibits anyone from conducting a game of chance in Lagos without obtaining a state-issued license.
In November 2024, the Supreme Court ruled that the NLRC no longer has nationwide regulatory authority. Its jurisdiction now covers only the Federal Capital Territory (FCT), granting states full control over gaming regulation.
To restore order, 25 states formed the Federation of State Gaming Regulators of Nigeria (FSGRN) to harmonize the sector and make licensing simpler and more transparent.
The Subnational Reciprocity Licensing Framework introduces a single license known as the Universal Reciprocity Certificate (URC) — allowing gaming operators to operate across all participating states under one unified approval.
