SEC attributes market meltdown to N9bn deficits in 3yrs, as Senate warns against insolvency

By Musa Baba Adamu

The Director General of Security and Exchange Commission (SEC), Lamido Yuguda, yesterday said that global economic meltdown and CoronaVirus Pandemic brought about dwindling fortunes of the commission within the last two years.
In response to this, the Senate Joint Committee on Finance, National Planning, Petroleum Upstream, Downstream and Gas, Chaired by Senator Solomon Olamilekan Adeola (APC Lagos West), raised alarm that the Commission may become bankrupt on account of N9billion deficits incurred within the last three years.
Yuguda who appeared before the joint committees as part of the ongoing interactive session with revenue generating agencies, disclosed that the capital market regulatory body projected revenue for 2021 was N11,502,340,000,000.00billion, with a personnel cost of N10,239,933,504.65billion.
As contained in the document he submitted to the committee, in 2019, the Commission recorded – N2.9 billion deficit, in 2020, N4.3 billion and as at June of 2021, N1.7 billion, totalling N8.5 billion.
He however assured that the ugly trend will change in subsequent years.
Reacting to this submission, Senator Olamilekan called the attention of the other Senators to it, particularly the high cost of personnel of the capital market regulator within the last two years.
“Your submission gives us a wrong impression about the SEC. You are a regulator to businesses that are making money but you are not making money. You may need to look at how to regulate your personnel to generate money. You need to cut down on cost.
“Your personnel cost, your top profile takes about 70% of total emolument of N9 billion, only 30% go to lower cadre. You need to stop the trend, this is the second year you are coming with a deficit budget”, he said.
Also kicking against the dwindling fortunes of the commission, a member of the committee, Senator Kashim Shettima (APC Borno Central), challenged the Director General to think out of the box.
He said going by record before the joint Committees, SEC was treading the path of insolvency with its humongous personnel costs.
“In the next two years, you are going to go bankrupt. Right now you are in deficit and except you come up with solutions you are going to go insolvent and won’t be able to meet your needs.
“We are challenging you to go back to the drawing board and find solutions to your financial situation.”
Another member of the Committee, Senator Adelere Oriolowo (APC Osun West), implored the DG SEC to expand its scope of revenue generation amidst what he called dwindling transactions on the floor of the Stock exchange.