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KGL makes millions for sustainability of NLA, and uses its profits to support national development

The integrity and credibility of investigative journalism rely heavily on consistency. Recent reports concerning the National Lottery Authority (NLA) and KGL Technology Limited deal have raised questions about the consistency of certain media outlets, specifically regarding their financial analysis of the agreement.

Discrepancies in Reported Figures

On September 19, 2025, it was reported that the NLA had effectively exchanged a valuable business opportunity for a relatively small sum of GHS 170 million from KGL for the year 2025.

However, on October 9, 2025, the same media outlet indicated that the NLA received GHS 157.6 million from KGL for 2024. Then, just a week later, on October 16, 2025, the narrative shifted to suggest that KGL was making millions in profit while the NLA made nothing.

This raises a fundamental question: if the NLA received GHS 157.6 million in 2024 and was projected to receive GHS 170 million in 2025, how can it be argued that the NLA is making zero profit? Does GHS 157.6 million + GHS 170 million equate to zero?

In total, the NLA would have obtained GHS 327.6 million from KGL for the financial years 2024 and 2025 alone. This figure does not include payments made by KGL to the NLA in previous years (2019, 2020, 2021, 2022, and 2023), which would significantly increase the total contribution of KGL to the NLA's revenue.

Profitability Analysis

Furthermore, on October 13, 2025, it was reported that in 2019, the first year of the NLA-KGL deal, the NLA's profit for the state reduced to GHS 17 million. If the NLA was able to generate a profit of GHS 17 million in the initial year of the agreement, the assertion that KGL makes millions while NLA makes zero seems contradictory.

Data indicates that KGL made a profit of GHS 70 million in 2024 while paying GHS 157.6 million to the NLA. This suggests that the NLA actually generated more revenue than KGL earned as profit during that period.

Additionally, information from the Ghana Revenue Authority (GRA) reveals that KGL paid taxes in 2024, with the tax amount exceeding the profit earned by the company in the same year. It is anticipated that by the end of 2025, total payments from KGL to both the NLA and the GRA will surpass KGL's profit for the year.

Examining Past Debts of the NLA

To understand the context of the NLA-KGL deal, it's crucial to consider the NLA's financial situation prior to the agreement. Audited accounts reveal substantial debts incurred by the NLA from 2012 to 2019:

• 2012 – GHS 16,754,642.18
• 2013 – GHS 56,917,633.63
• 2014 – GHS 11,597,177.79
• 2015 – GHS 18,306,364.73
• 2016 – GHS 21,035,212.20
• 2017 – GHS 14,601,385.04
• 2018 – GHS 560,155.27
• 2019 – GHS 26,624,188.53

Given these pre-existing debts, it seems inappropriate to attribute the NLA's financial challenges solely to the NLA-KGL deal. The provisional license for the NLA-KGL deal was signed in November 2019, meaning the agreement could not have contributed to debts accumulated before that date.

The NLA's financial difficulties, including unpaid prizes, contractors, taxes, and contributions, predated the KGL agreement. The total debt of NLA before the NLA-KGL deal amounted to approximately GHS 233,121,889.28 million, encompassing:

1. Unpaid Lotto Prizes to winners
2. Unpaid Contractors
3. Unpaid Withholding Tax to GRA
4. Unpaid SSNIT Contributions
5. Unpaid Technical Service Providers Fees
6. Unpaid Lotto Commission to Lotto Marketing Companies
7. Unpaid Provident Fund
8. Unpaid Staff Union and Association Dues Deductions

Internal Factors Affecting NLA's Finances

Several internal factors have also contributed to the NLA's financial situation:

1. Existing revenue sharing agreements with Technical Service Providers, each receiving 6% of gross revenue generated through Point of Sale Terminals.
2. A 25% commission to Lotto Marketing Companies retailing lotto products (previously 20%).
3. Illegal lottery operations.
4. High Win-Ratios
5. No capping on the amount of money used for staking Lotto.

Transfers to Consolidated Fund

The NLA's obligation to transfer funds to the Consolidated Fund is a separate issue from the NLA-KGL agreement. KGL's responsibility is to remit fees to the NLA according to the license agreement. How the NLA utilizes these funds is independent of KGL's obligations.

Section 32(4) of the National Lotto Act, 2006 (Act 722), which mandates monthly transfers to the Consolidated Fund, can only be fully implemented if Section 32(3) is satisfied. Section 32(3) stipulates that the NLA must first pay prize monies and commissions.

If there is no net balance in the Lotto Account after these payments, the transfer to the Consolidated Fund cannot occur. In the past, the NLA has prioritized transfers to the Consolidated Fund, sometimes at the expense of paying winners, marketing companies, and service providers.

For instance, from 2012 to 2020, the NLA transferred a total of GHS 209,409,495.24 to the Consolidated Fund while simultaneously owing GHS 233,121,889.28 to various stakeholders.

KGL's Contributions to National Development

KGL invests a significant portion of its profits (50-70%) into Corporate Social Responsibility (CSR) and Corporate Social Investments (CSI) initiatives across the nation. These initiatives include:

1. Construction of a modern Mental Health Facility in Kumasi.
2. Renovation of Accra Psychiatric Hospital.
3. Support for Akropong School for the Blind.
4. Donations to Flood Victims at Keta.
5. Sponsorship of the Democracy Cup initiative by the Parliament of Ghana.
6. Sponsorship of the Ghana Football Association.
7. Sponsorship of the Ghana Black Stars and other National Football Teams.
8. Support for the Millennium Marathon.
9. Scholarships for Orphans, Needy, and Destitute Children.
10. Annual contribution of Two Million Ghana Cedis to support the NLA Good Causes Foundation.
11. Annual contribution of Three Million Ghana Cedis to support the NLA-KGL Stabilization Fund.
12. Refurbishment of NLA’s Draw Studio, Brennan Hall.
13. Payments of Live Lotto Draws of NLA
14. Several other contributions.

These contributions demonstrate KGL's commitment to national development and its role in supporting the NLA and various social causes.

Thus the article KGL makes millions for sustainability of NLA, and uses its profits to support national development

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