Nigerian Lottery Firm’s Gross Margin Falls From 6.4% to 4.2%

The unaudited figures filed with the Nigerian Exchange cover the three months ended September 30. Approved by the board on October 20, they show gross income of ₦920.7 million ($690,400), down 15.4% from ₦1.09 billion in Q3 2025.

At the Central Bank of Nigeria’s October 20 exchange rate, one US dollar was worth ₦1,333.6467.

Prize Payouts Claim a Larger Share of Lottery Income

Secure Electronic Technology paid ₦558.0 million ($418,400) in prizes and winnings during Q3 2026. Another ₦324.0 million ($242,900) went towards ticket costs. Both amounts were lower than a year earlier, although lottery income also fell.

The proportions changed. For every ₦100 of gross income, the company’s costs broke down as follows:

Per ₦100 of gross income

Q3 2025

Q3 2026

Prizes and winnings

₦57.80

₦60.60

Ticket costs

₦35.80

₦35.20

Gross profit remaining

₦6.40

₦4.20

15M calculations based on the company’s quarterly accounts (figures rounded).

The two costs took ₦95.80 out of every ₦100 received in Q3 2026, against ₦93.60 a year earlier. Ticket costs accounted for a slightly smaller share, but that saving was outweighed by the larger proportion paid out in winnings.

Gross profit fell 44.5% to ₦38.7 million ($29,000). The quarterly net loss, meanwhile, widened by 133.2% from ₦45.4 million to ₦105.8 million.

Administration Costs Reached Four Times Gross Profit

Administrative expenses rose 34.7% year on year to ₦154.4 million ($115,800) in Q3 2026, against ₦114.6 million in Q3 2025. They were 4.0 times quarterly gross profit, compared with 1.6 times a year earlier.

Other operating income of ₦10.4 million ($7,800) helped offset the costs. Even so, the company recorded an operating loss of ₦105.3 million for the quarter.

Headcount Rose by 44% in 12 Months

A staffing note shows 72 employees at September 30, 2026, against 50 a year earlier. The increase came mainly from other management personnel, up from 22 to 33, and staff personnel, up from 20 to 31. Key management stayed at eight.

Covering Administrative Costs Would Require ₦3.7B

The company combines lottery tickets and gaming products in its gross-income figure. At Q3’s gross margin of 4.2%, it would take roughly ₦3.7 billion in quarterly gross income to cover ₦154.4 million in administrative expenses, assuming the same cost structure. That’s about four times the ₦920.7 million reported for Q3.