Connect with us

Markets

Nigeria Loses N25b Yearly to Importation of Foreign Lottery Technology

Published

on

lottery
  • Nigeria Loses N25b Yearly to Importation of Foreign Lottery Technology

The acquisition, deployment and maintenance of lottery technologies in Nigeria are causing the country a yearly loss of about N25 billion.

This was disclosed in Lagos by the Managing Director and Chief Executive Officer of Lotgrand – operator of Grandlotto Yellow Terminal brand – Niyi Adekunle, whose company promotes the lotto business in Nigeria with the Machine Number Series (MNS).

The loss, in essence means that the sector requires indigenous technology, both software and hardware to curb the increasing capital flight.

Accordingly, lotteries are extremely thrilling, and “promise players good profit”. As such, lottery operators strive to make these games even more fun by utilising technology.

“We can save huge foreign exchange for the benefit of the economy if our technology sector can support our business with the right technology software and hardware,” Adekunle stated.

Before now, experts have argued that the development of a nation is not only tied to available human capital but equally on its social and economic resources. According to the experts, several developed countries consolidated on these natural endowments to re-write their history on sound economic footing worthy of emulation by the global community.

Lottery therefore, they say, is a social resource that has positively changed the economic fortunes of several nations.

A Guardian 2015 report titled: ‘Another push for economic growth through lottery’, revealed that in South Africa, for instance, 82 per cent of the population play lottery, at least, once in a week.

In 2012 alone, lottery share of funds to the country’s finances was put at about N141.3 billion.

Morocco is another country, the report noted to be reaping large from lottery promotions. With a population of 35 million, the country got a posted revenue contributions to the Central government to the tune of $15 million in 2012, an equivalent of N2.6 billion.

In Niger Republic, more than 45 per cent of the population play lottery because the citizens are aware that over the years, lottery proceeds are being used by the government to fight desertification and for the provision of bore holes for rural communities even as several lottery winners continue to enjoy sponsorship to Mecca to perform Holy pilgrimage year-in-year-out.

According to Adekunle, Grandlotto Yellow Terminal brand, technology hardware component alone constitutes 40 per cent of lottery operators’ technology spends. “Payment for the acquisition of software licenses and support services constitute another 20 and 40 percent of our annual technology budget spends respectively,” he explained.

Adekunle explained that the game has more followers than online casino and “it is easy to play”.

Amid a highly competitive digital landscape in the lottery industry in the country, Adekunle projected that the operators’ yearly spends on technology would witness an exponential increment in 2017.

“I see more players in the industry spending huge on instant game inventory management systems, lottery gaming systems, retail point-of-sale technology, mobile apps, USSD platform, data and communications links and internet platforms,” he added.

While forecasting the growth rates in mobile lotteries sales in 2017, he said smart operators are now adopting the USSD codes to attract new set of target market and obtain a higher percentage of infrequent players and net new audience.

An ICT expert, Razack Olaegbe, further provided insight into the issue, saying that Nigeria has the capacity to develop local technologies. “It is just that local innovators are not looking in that direction. All of them are focusing on fintech, no one is exploiting the opportunities in lottery technology.”

On the success of lottery operations in the country, Olaegbe said the local lottery system has been successful with one lottery company paying over N500 million bonus to one winner in a single game with others companies paying a combined N1 billion a year in bonus. Lotto, sports betting, casino, online betting, among others all generate more than N25 billion a year across the country.

According to him, the industry is growing but under reported industry. “The economic recession has exposed more people to playing lotto, sport betting, online betting and casino. The bonus paid by all the lottery operators is more than N25 billion.”

Adekunle challenged indigenous IT players to focus their innovations on the lottery industry and compete for a big chunk of the market share so that the local economy can reap from the hyper growth of the lottery industry.
He lamented that with the country’s high level of sophistication and global view, the country has remained “net importer of lottery technologies”.

The 2015 Guardian report, quoted the Director-General of National Lottery Regulatory Commission (NLRC), Adolphus Ekpe, as saying that the commission was poised to sanitise the industry and rid it of illegal operators as well as make the legal operators play by the rules.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Crude Oil Pulled Back Despite Joe Biden Stimulus

Published

on

Oil 1

Crude Oil Pulled Back Despite Joe Biden Stimulus

Crude oil pulled back on Friday despite the $1.9 trillion stimulus package announced by U.S President-elect, Joe Biden.

Brent crude oil, against which Nigeria’s oil is priced, pulled back from $57.38 per barrel on Wednesday to $55.52 per barrel on Friday in spite of the huge stimulus package announced on Thursday.

On Thursday, OPEC, in its latest outlook for the year, said uncertainties remain high in 2021 with the number of COVID-19 new cases on the rise.

OPEC said, “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.”

Governments across Europe have announced tighter and longer coronavirus lockdowns, with vaccinations not expected to have a significant impact for the next few months.

The complex remains in pause mode, a development that should not be surprising given the magnitude of the oil price gains that have been developing for some 2-1/2 months,” Jim Ritterbusch, president of Ritterbusch and Associates, said.

Still, OPEC left its crude oil projections unchanged for the year. The oil cartel expected global oil demand to increase by 5.9 million barrels per day year on year to an average of 95.9 million per day in 2020.

But also OPEC expects a recent rally and stimulus to boost U.S. Shale crude oil production in the year, a projection Investors King experts expect to hurt OPEC strategy in 2021.

Continue Reading

Crude Oil

OPEC Says Uncertainties Remain High in 2021

Published

on

Nigeria's economic Productivity

OPEC Says Uncertainties Remain High in 2021

The Organization of the Petroleum Exporting Countries (OPEC) on Thursday said global uncertainties remained high going forward in 2021 but kept its oil demand forecast unchanged.

In the cartel’s latest oil outlook for 2021, oil demand is expected to increase by 5.9 million barrels per day year on year to 95.9 million barrels per day. The prediction was unchanged from December’s assessment.

However, OPEC and allies, said: “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.

Crude oil rose to $57 per barrel this week after incoming US President Joe Biden announced it would inject $1.9 trillion stimulus into the world’s largest economy.

But the recent rally in the commodity and stimulus announcement is expected to boost US crude oil output and disrupt OPEC+ production cuts strategy for the year.

The 2021 supply outlook is now slightly more optimistic for U.S. shale with oil prices increasing, and output is expected to recover more in the second half of 2021,” OPEC said.

Still, OPEC, in its forecast “assumes a healthy recovery in economic activities including industrial production, an improving labour market and higher vehicle sales than in 2020.”

“Accordingly, oil demand is anticipated to rise steadily this year supported primarily by transportation and industrial fuels,” the group said.

Continue Reading

Crude Oil

Brent Crude Oil Rose to $56.25 Per Barrel

Published

on

oil

Brent Crude Oil Rose to $56.25 Per Barrel

Oil price surged following the declaration of Joe Biden as the President-elect of the United States of America last week after Trump’s mob invaded Capitol to disrupt a joint Senate session.

Also, the large drop in US crude inventories helped support crude oil price to over 11 months despite the second wave of COVID-19 crushing the world from Asia to Europe to America.

Brent crude oil, against which Nigerian Crude oil is priced, rose to $56.25 per barrel on Friday before pulling back to $55.422 per barrel on Monday during the London trading session.

Experts attributed the pullback to the rising number of COVID-19 cases in Asia with about 11 million people already locked down in Hebei province in China.

Covid hot spots flaring again in Asia, with 11 million people (in) lockdowns in China Hebei province… along with a touch of FED policy uncertainty has triggered some profit taking out of the gates this morning,” Stephen Innes, chief global market strategist at Axi, said in a note on Monday.

China, the world’s largest importer of crude oil, has joined the United Kingdom and others declaring full or partial lockdown to curb the second wave of COVID-19.

Continue Reading

Trending