Samuel Awuku, NLA boss, receives a copy of the sealed deal as Alex Dedey, Executive Chairman of KGL Group, looks on
The National Lottery Authority (NLA) has signed a GHC55million agreement with KGL Technology Limited, as payment to partner KGL in the operation of NLA’s 5/90 online game for the year 2022.
According to the Director-General of NLA, Samuel Awuku, who disclosed this, the agreement was signed after several weeks of tough negotiations between KGL and NLA.
Meanwhile, the Board of Directors of NLA have commended KGL for its innovation over the last two years during the pilot stages and robust ICT infrastructure put in place.
In November 2019, NLA signed an agreement with KGL Technology Limited, granting the latter a provisional licence agreement to operate its 5/90 Game as an online lottery game on a pilot basis for two years.
As part of the agreement, KGL paid GHS20 million to NLA in 2020, and paid GHS25 million to NLA in 2021. The substantive 10-year agreement, renewable every three years, was thus set to begin in January 2022 between NLA and KGL under the fresh direction of leadership of its Director-General, Mr Awuku, and the Board of Directors chaired by Togbui Francis Albert Nyonyo.
“NLA has re-negotiated the deal to secure GHS 25 million more for the Authority, bringing the total amount to GHS55 million for the year 2022,” Mr Awuku was quoted in a statement to have said.
However, he said, KGL would, in addition to the GHS55 million, pay a licensing fee of GHS 1.7 million.
Breakdown
Mr Awuku announced that GHS50 million would go into NLA’s coffers, while GHS 3 million will go into Stabilisation Fund to cushion the Lotto Marketing Companies (LMCs) whose business have seen a downward turn recently.
“The remaining GHS2 million will go into the NLA’s Good Causes Foundation to support the Authority’s Corporate Social Responsibility projects”, he said, adding that the GHS55 million would be paid in quarterly installments, effective January 31, 2022.
Staff of NLA and other stakeholders see this new deal is a game changer that will shore up the Authority’s revenue, which had declined in the last couple of years.
The Board Chairman of NLA, Togbui Francis Nyonyo, at a brief signing ceremony, admonished KGL not to be complacent, but continue to work hard to justify the confidence reposed in them.
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