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MPs criticise lottery operator Camelot over problem gambling

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MPs criticise lottery operator Camelot over problem gambling

A cross-party group of MPs has called for ministers to consider action against the national lottery operator, Camelot, arguing a move towards app-based games rather than traditional draws risks worsening problem gambling and reducing the amounts given to good causes.

The move from Conservative and Labour MPs comes after Camelot’s most recent results showed that two-thirds of sales growth in 2020 and 2021 came through so-called instant win games, primarily online, a process in part caused by Covid lockdowns. Overall, mobile sales rose from £1.606bn in 2020 to £2.482bn in 2021.

Ministers have previously expressed concern that the lottery’s shift towards more online games could become “a gateway to problem gambling”, with the minimum age for taking part increased this year from 16 to 18.

The MPs said that 9% of proceeds of instant win games, comprising scratchcards as well as online games, go to community causes, against 31% of draw-based game sales. They said the proportion of overall sales contributed had fallen from 28% in 2012-13 to 21% in 2020-21.

Camelot, which is bidding to keep the lottery licence it has held since it began in 1994 beyond 2023, rejects the criticism, saying the growth of online sales also includes traditional draws bought via the app, and is part of a wider shift in gambling patterns. It also notes that overall sums given to good causes have continued to increase, and argues its record on problem gambling is good.

But Alexander Stafford, the Conservative MP for Rother Valley and one of seven “red wall” Tories who have previously warned about Camelot’s business model, said it was “time to get someone in who can run the national lottery properly and who can be more true to its founding values”.

He said: “People trust the national lottery as a brand and want to get behind its charitable mission statement. But these controversial instant win games are herding people towards a more dangerous form of gambling, putting vulnerable people at risk.”

Camelot’s annual report, released in June, hailed the growth in app-based sales due to a new home screen “with personalisation, leveraging machine learning to serve more relevant games to players based on their play behaviour”, noting also “increased traffic to the digital channels due to Covid-19”.

Carolyn Harris, the Labour MP who chairs the all-party group on gambling-related harms, said ministers should intervene to change Camelot’s approach.

She said: “This beggars belief, particularly in a year when many people have struggled and charities are crying out for funding. That so little money from the lottery is going to charity is sickening and the government must see to it that this cannot happen again.”

A Camelot spokesperson said app-based games had existed since 2015, with sales growing in line with wider trends, and that app-based gaming had increased generally amid the pandemic restrictions, given that fewer people went to shops.

They said: “By giving people a choice of safe and enjoyable games that they want to play, by making those games attractive and generous to players, and by enabling people to play in ways that suit them best, we’re generating record monetary returns to good causes from ticket sales, record prize money to players and record payments in lottery duty to the Treasury – all in a responsible way.”

The Gambling Commission, which regulates the lottery, argues that app-based games need a higher return of prizes than draws to attract players, and that it was more important that the overall sum given to good causes was increasing. It says it is satisfied that Camelot’s games are comparatively low risk.

The Canadian-owned Camelot faces competition from three other would-be lottery operators to take over the licence from 2023: the Czech-owned Sazka Group, which runs lotteries in its home country as well as Greece, Italy and Austria; the former Daily Express owner Richard Desmond; and Sisal, which has operations in its native Italy as well as Spain, Morocco and Turkey.

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Nigeria’s total debt hits N87.37trn in Q3 2023 — DMO

Director General of Debt Management Office (DMO), Ms. Patience, on Friday, disclosed that the country’s debt stock stands at N87.37 trillion as at 30th September 2023.

Ms. Oniha who disclosed this during the interactive session held at the instance of House Committee on Appropriations chaired by Hon. Abubakar Bichi, however, noted that while justifying the rationale behind the borrowing spree, she informed the Parliament that projects implemented by Federal Government during the three previous recessions were funded through borrowing.

She said: “Let me speak a bit about public debt as you requested in the letter inviting us

“The first point is that we have run budget deficit for many years for which the DMO has been raising funds locally and internationally to support the budget.

“The point I would like to make is that as the level of borrowings increases you have to service them so debt services increase also.

“Again, we run budget deficits because we have projects and programmes in the budget that the government wants to run. If we go back from 2015 and 2016, we know we have been through about two or three recessions. So, a lot of that bringing the economy out of recession was funded from borrowing.

“The DMO’s role is to manage that debt and make sure it is sustainable and that there is no default because borrowing is not a bad thing but when you borrow you use it well.

“Debt has been growing largely from new borrowings. You see the MTEF for instance that you have approved, it has borrowings in each of the years of 8.7, 10.2 and N11.58 trillion just to buttress the point that as you increase the funds the debt stock grows.

“So, it also also growing because we have issued Promissory Notes and again like I said, Ways and Means advances. We usually like to say that debt stock relative to our GDP is not the issue.

“That has grown from 23 percent in March to about 40 percent in June. The same way the debt stock grew.

“But we need to do, to focus on debt service revenue which is very high. That is why I said the discussions about revenue, we cannot stop talking about them enough.

“So, apart from trying to generate as much revenue as we should, what else should we be doing? We are advocates for a number of initiatives being taken. Should be privatized if those projects can be better managed. You can attract capital. Do the private-public partnership so not everything is on the budget. Because when you put everything on the budget, you cannot get a deficit for which you need to borrow.

“We should strongly support the Fiscal Reform and Tax Policy Committee, we really need to get that working to change the story of us.

“For this year 2023 the DMO was to provide about N8.8 trillion, 7 trillion of that is domestic; meaning we borrow it here on naira. And then there is 1.7 trillion that ordinarily in normal times, we would have issued Euro bonds or from other sources.

“So, out of the domestic of 7 trillion as we speak, we have raised the full amount. So, you can say we have raised a significant amount to fund this budget.

“If the international markets had been covered and we were investing in counties with similar ratings like Nigeria by now we would also have issued a Euro bond.

“We have been extremely supportive of funding the budget and the operations of government,” Ms. Oniha noted.

While speaking on funding of some of the proposed infrastructural projects, she disclosed that the present administration is to ensure direct support with the SUKUK.

According to her, “This year some of that 7 trillion we issued it by way of SUKUK and you will soon begin to see the roads across the FCT.

“Having spoken to what is in the 2023 of which we have raised 7 trillion out of the 8.8 trillion. So we know that in 2024, from the MTEF there is 8.749 trillion.

“So, the levels of borrowing are still high but I think as the MTEF is a rolling document, as the picture looks better on revenues maybe the numbers would be lower.”

Speaking earlier, Chairman, House Committee on Appropriations, Hon. Abubakar Bichi explained that the interactive session with heads of MDAs was aimed at addressing strategies for the rising inflation, reducing the burden of Nigeria’s debt profile, sectoral budgetary allocations, and the dynamics of budget releases.

“Others are economic diversification strategies, revenue generation forecasts, and any useful information that will facilitate the enactment of the bill and effective implementation of the Appropriations Act, 2024.

“Amidst concerns to address the infrastructural gap in the country, eliminate poverty, and generally achieve the 8-Point Renewed Hope Agenda, there is a need to ensure that all loose ends to revenue are tied, as this can have a gross impact on the government’s ability to implement the 2024 Appropriation Bill when passed.

“While the revised MTEF and FSP showed that revenue-generating efforts by the present administration are already yielding fruit, more needs to be done to ensure that government-owned enterprises optimize their revenue-generating potential.

“In light of the above, this interaction is designed to engage relevant stakeholders to provide insight on the perspective of the budget and enable the Committee to play its coordinating role in ensuing allocative efficiency in the 2024 appropriation process,” Hon. Bichi noted.

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PenCom Recovers N24.8b UnremittedFunds

The National Pension Commission, PenCom, recovered N24.8 billion of funds unremitted by employers in the third quarter of 2023.

Oguche Agudah, Chief Executive Officer of Pension Funds Operators’ Association of Nigeria made the declaration on Friday in Lagos.

He spoke at a media parley with the theme: “At the dawn of 20 years of pension reform, what are the gains?”

Mr Agudah said PenCom recovered N23.3 billion of such funds in the third quarter of 2022, while it recovered N2.23 billion in the third quarter of 2021.

He said also that the pensions industry recorded an Asset under Management of N17.35 trillion in the second quarter of 2023.

It made investments of N349.97 billion in infrastructure in the second quarter of 2023, up from the N333.02 billion invested in the corresponding quarter of 2022, Agudah added.

Investments in infrastructure, he also said, represented 2.02 per cent of total investments made in the second quarter of 2023.

Mr Agudah said the industry also invested N1.54 trillion in the equities market in the third quarter of 2023.

This, he explained, represented 8.88 per cent of total investments, as against the N964.84 billion invested in the corresponding quarter of 2022.

He said the pension industry would focus more on micro-pensions and revise its investment guidelines in 2024 when it celebrates the 20th year of pension reforms.

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Nigeria, China sign pact on $150m battery plant

The Federal Ministry of Power and the China Ministry of Ecology and Environment, on Friday, supervised the signing of an agreement for the construction of a $150m lithium-ion battery manufacturing plant in Nigeria by a Chinese firm.

Parties in the deal signed the agreement in Dubai at the United Nations Climate Conference, also known as COP28, according to a statement issued in Abuja on Friday by the Rural Electrification Agency.

The statement read in part, “The Rural Electrification Agency of Nigeria and the National Agency for Science and Engineering Infrastructure are poised to make a significant stride in climate action by signing a groundbreaking cooperation agreement with the SHENZEN LEMI Technology Development Company.

“The agreement was signed on December 8, 2023, under the leadership of the Nigerian Federal Ministry of Power and the China Ministry of Ecology and Environment.

“The partnership will facilitate the establishment of a lithium-ion battery manufacturing and processing factory in Nigeria. This initiative is backed by a $150m investment from LEMI, with operations scheduled to commence in phases, starting from the second quarter of 2024.”

The REA stated that the Chinese Ministry of Ecology and Environment, in collaboration with the Federal Ministry of Power in Nigeria, expressed enthusiasm for being part of the agreement.

“The signing of the cooperation agreement is anticipated to serve as a pioneer initiative for the Light and Belt Initiative in Africa, aligning with global efforts to drive climate technology development and transfer.

“This collaboration will strengthen NASENI’s mandate under the agency’s new leadership to manage the research and development of capital goods, production and reverse engineering to enhance local mass production of standard parts and services for the nation’s technological advancement with a special focus on the Nigerian electricity sector.

“Furthermore, the collaboration underscores REA’s commitment to bridging the climate technology gap and combating the adverse effects of climate change. It also aligns with Nigeria’s ambitious goals of achieving universal electricity access by 2030 and net-zero emissions by 2060,” the agency stated.

It further explained that the partnership would foster the development and transfer of climate technology, promote indigenous industrialisation, facilitate commercialisation, enhance public-private cooperation, and contribute to job creation, economic growth, and the extractive industry in Nigeria.

“Recognising the crucial role of energy storage in the transition to renewable energy sources, the investment in lithium-ion energy storage manufacturing signifies a significant step towards achieving a low-carbon economy,” the REA stated.

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