NLA makes GH₵5.2m profit in 2yrs, clears GH₵17.1m debt – Awuku

The National Lottery Authority (NLA) has undergone a significant turnaround under the three-year tenure of its current Director General (DG), Samuel Awuku.

When Mr. Awuku assumed office, the NLA was grappling with unpaid lottery winnings exceeding GH₵14 million and a debt burden of GH₵17.1 million (GH₵17,148,582).

However, his leadership has seen the organization post a combined profit of GH₵5.2 million (GH₵5,259,611) over two years.

Clearing debts and achieving profitability

Under Mr. Awuku’s direction, the NLA has cleared all outstanding winnings, restored staff morale, and set the company on a path to growth.

In 2020, the NLA recorded a loss of GH₵788,818, followed by a GH₵7.1 million loss in 2021.

However, by 2022, the NLA had turned its fortunes around, posting a profit of GH₵2.5 million (GH₵2,563,980), and continued this positive trend in 2023 with a profit of GH₵2.6 million (GH₵2,695,631.16).

Re-negotiation of collaborators’ fees

This financial recovery is largely attributed to a substantial increase in miscellaneous income, which surged from GH₵35.54 million in 2020 to GH₵133.45 million in 2023—a remarkable 263.45% increase.

A significant portion of this growth came from revenue generated through collaborations.

Mr. Awuku played a crucial role in re-launching the NLA’s Caritas Platform, a major revenue-generating tool, and in the registration of key illegal operators as Private Lottery Operators (PLOs) through the issuance of licenses.

Boosting staff morale and enhancing revenue streams

To further support the NLA’s operations, Mr. Awuku prioritized enhancing staff benefits, boosting morale, and instituting a stabilization fund for Lotto Marketing Companies (LMCs) to support retailers.

His leadership also led to the introduction of televised and community draws, which improved the NLA’s public image and stakeholder relations.

Establishment of the LMC Stabilization Fund

Mr. Awuku established the LMC Stabilization Fund, which has accrued GH₵9.9 million over three years—GH₵3 million in 2022, GH₵3.3 million in 2023, and GH₵3.6 million in 2024.

Additionally, GH₵14.8 million has been raised for the Good Causes Charity, funding various philanthropic activities and projects nationwide.

NLA increases lotto writers’ commission to 25%

The NLA recently announced a significant increase in the commission paid to lotto writers, raising it from 20% to 25%, effective from the end of August 2024.

This adjustment, approved by the NLA Board, follows the Lotto Act, Act 722, which grants the Board the authority to determine commission rates for lotto writers.

Historical commission rates and writers’ demands

Since the introduction of the lottery in Ghana in 1962, lotto writers received a 25% commission.

However, in 2011, writers petitioned for an increase to 30%. Following a global study by the NLA, which found that global rates were lower than Ghana’s 25%, the commission was reduced to 20%.

This decision was met with dissatisfaction, leading to legal action by lotto writers, although they ultimately lost the case.

Despite the reduction, some private lotto companies continued to pay up to 30% illegally.

Enforcement of 20% commission in 2022

In 2022, the NLA enforced the 20% commission across the board, a move strongly opposed by the Ghana Lotto Operators Association (GLOA), the Concerned Lotto Agents Association of Ghana (CLAAG), and the Private Lotto Writers Association (PLAW).

These groups argued that the 20% commission was insufficient, especially given economic challenges, and called for an increase to 40%.

Challenges with illegal lotto operations

Despite the estimated GH₵1.8 billion annual value of Ghana’s lotto industry, the NLA captures only about GH₵800 million, with illegal operators raking in over GH₵1 billion annually.

700 illegal lotto companies

Mr. Awuku noted that of the estimated 700 illegal lotto companies, mostly in rural areas, only about 20 are registered with the NLA.

He highlighted the role of illegal operators as financiers of Ghana’s major political parties and stressed the importance of preventing political interference in the NLA’s revenue generation efforts.

Regional and global influence of the NLA

The NLA also generates income from Nigeria and Ivory Coast, where its draw results are used for local lotteries, demonstrating the Authority’s regional influence.

Under Mr. Awuku’s leadership, the NLA has gained global recognition, achieving Level 2 Certification in Responsible Gaming and Observer Member Status in the European Lottery Association.

Awards and global recognition

He won the Overall Public Sector CEO of the Year consecutively in 2022 and 2023 for his transformational leadership of the NLA.

He is the first Anglophone Vice-President of the African Lottery Association (ALA), since its inception, a major boost for other Anglophone countries.

He has remodeled the NLA Draw Studio and in the process of refurbishing the Brennan Hall into a state of the art hall.

He has also purchase new draw machines in accordance with the standards of the World Lottery Association (WLA). Mr. Awuku’s leadership is widely regarded as inspirational, dynamic, and results-oriented, leading the NLA from a loss-making entity to a profitable and respected organization