SEC Going Insolvent – Senate

 

..as the SEC Declare deficit of N9bn in 3 years

 

Adekunle Adesuji,Abuja

 

 

The Senate on Wednesday raised alarm over insolvency of  Security and Exchange Commission, (SEC) as the Capital Market Regulator declared deficit of N9billion in three years.

 

The Senate through its Joint Committees on Finance , National Planning, Petroleum Upstream, Downstream and Gas chaired by Senator Adeola Solomon Olamilekan made the observation during interactive session with revenue generating agencies  while the Director General of the SEC,  Lamido Yuguda,  was making presentation.

 

 

The interactive session is purposely organized to deliberate on the 2022-2024 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy (FSP).

 

Shocked by deficit recorded by SEC the Chairman called the attention of the other Senators present at the interactive session lamenting that  the personnel cost of the Commission was too much on the high side in the last two years.

 

He said:” This budget 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. “We should know what is happening.

This is the second year you are coming with a deficit budget.”

 

In the document submitted to the Committee, in 2019, the Agency recorded – N2.9 billion deficit while in 2020, Capital Market Regulator recorded deficit of of N4.3 billion and in 2021 as at June , the agency has already recorded deficit of N1.7 billion.

 

Therefore, the total deficit between 2019-2021 is N9 billion.

 

But, the SEC Director General in his reaction claimed that his Commission has been adversely affected by the market meltdown and the global  pandemic, Coronavirus.

 

Kicking against lame excuse by SEC , Director General,  Senator Kashim Shettima challenged the Director General to think out of the box.

 

 

He said considering the record before the Hint Committees  SEC was treading the path of insolvency with its humongous personnel cost

 

 

” 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.”

 

 

In his contribution, Senator representing Osun west, Adelere Oriolowo, implored the DG SEC to expand its scope of revenue generation amidst what he called dwindling transactions on the floor of the Stock exchange.