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Friday, 3 September 2021

SEC Attributes Market Meltdown to N9billion Deficits in 3 Years

...as Senate Raises Alarm on Imminent Insolvency
The Director General of Security and Exchange Commission (SEC), Lamido Yuguda declared Wednesday that global economic meltdown and the Corona Virus Pandemic, caused dwindling fortunes of the commission within the last two years.

This is as the Senate through its joint  Committees on Finance, National Planning, Petroleum Upstream, Downstream and Gas,  Chaired by Senator  Solomon Olamilekan Adeola (APC Lagos West),  raised alarm that the Commission may go 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. 

Shocked by the submission,  the Chairman of the committee called  attention of the other Senators to it, particularly the high side of personnel cost of the capital market regulator within the last two years.

"Your submission gives us a wrong impression about SEC. You are a regulator to businesses that are making money but you aren't 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.

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