Browse topics

• Governing law

  Name	Law or Code?
  National Lottery Act 2005	Law
  Advertising Practitioners (Registration) Act Cap A7 Laws of the Federal Republic of Nigeria, 2004)	Law
  National Lottery Regulations 2007	Code
  Nigerian Code of Advertising Practice & Sales Promotion	Code
  Nigerian Communication Guidelines on Advertisements and Promotions	Code

  Last modified 15 May 2019

• Extra-territoriality

  National laws and regulations are enforceable against all persons, whether corporate or natural, firm, agency, company or any other corporate entity registered as advertising practitioners, including all persons that engage in advertising practice for gain and all organisations, corporate bodies and individuals who use advertising services, whether of indigenous or foreign origin, in so far as they offer advertising services directed at the Nigerian advertising market or are sponsored by a company doing business in Nigeria.

  Last modified 15 May 2019

• Skills competitions

  According to the definition of lottery in Section 57 of the National Lottery Act, prize promotions can be run based on skill.

  Last modified 15 May 2019

• Prize draws

  Yes. Prize promotions with an element of chance fall within the scope of the definition of lottery under Section 57 of the National Lottery Act.

  Last modified 15 May 2019

• Selection of winners

  A promoter is required to use best endeavours to find and make payment to all prize winners. The detailed terms for selection of winners (which demonstrate best endeavours) are in practice set out in the terms and conditions of the promotion.

  Last modified 15 May 2019

• Judges

  Promotions must specify, before or at the time of entry, the criteria for judging entries. If the selection of winning entries is open to subjective interpretation, an independent judge, or a panel including one member who is independent of the competition’s promoters and intermediaries, shall be appointed. Those appointed to act as judges shall be competent to judge the subject matter of the competition. The full names of the judges shall be available on request.

  Last modified 15 May 2019

• Prizes
  • Promoters shall award prizes as described in their advertising or reasonable equivalents.
    
    
  • Prize draws must be awarded in accordance with the laws of chance and under the supervision of an independent observer.
    
    
  • Participants in instant win promotions shall get their winnings at once or shall know immediately what they have won and how to claim without delay, unreasonable costs or administrative barriers. Instant win tokens or numbers shall be awarded on a fair and random basis and verification shall take the form of an independently audited statement that all prizes have been distributed, or made available for distribution in that manner.  

  Last modified 15 May 2019

• Registration requirements and fees

  Registration Requirements

  Promotions are generally registered in Nigeria. Requirements include the details of the promotion, duration and related information. 

  Fees/Taxes payable 

  Prize promotion expenses are deductible when computing the taxable profits of the promoter or the licensee. Also, Value Added Tax on the cash payments does not arise, as Value Added tax would have been included in the qualifying charges such as the ticket costs.

  Last modified 15 May 2019

• Other local requirements
  • The following must be specified before or at the time of entry:
    
    
    • Geographical, personal or technological restrictions such as location, age or the need to have access to the Internet.
      
      
    • Any requirement to obtain permission to enter from an adult or employer.
      
      
    • If relevant, ownership of copyright in entries.
      
      
    • Any intention to use winners in post – event publicity.
      
      
  • Prize promotions and promotions addressed to children always need a closing date (some others do not e.g. competitions that refer to a special offer).
    
    
  • Advertisers announcing reader promotions on the front page or cover shall ensure that consumers know whether they will be expected to buy subsequent editions of the publication. Major conditions that might reasonably influence consumers significantly in their decision to buy the publication shall appear on the front page or cover.

  Last modified 15 May 2019

• Timing

  No additional time is required.

  Last modified 15 May 2019

• Translations

  No requirements under the law.

  Last modified 15 May 2019

• Penalties for non-compliance

  The National Lotteries Act establishes penalties of fines of a minimum of N100,000 (approx. US$275) for corporate bodies, and N20,000 (approx. US$55) for each director, manager and officer of such corporate bodies or imprisonment for a term or both. The Code of Advertising Practice establishes a cash penalty of a minimum of N500,000 (approx. US$1,380) for media houses, agencies and advertisers.

  Last modified 15 May 2019

• Restrictiveness of regulations

  The legal obligations applicable to prize promotions in Nigeria are not particularly restrictive. Rather, they are tailored towards promoting high ethical standards in the advertising industry.

  Last modified 15 May 2019

• Regularity of sanctions

  The Code is tightly enforced and sanctions (by way of reprimands, warnings, fines and reduction in scope of licenses) are imposed as needed against persons and corporate entities that violate the Code.

  Last modified 15 May 2019

• Key contacts
  

  Otu-Ekong Ukoyen

  Senior Associate Olajide Oyewole LLP [email protected] T +23412793670