Senate raises alarm over imminent insolvency in SEC
Following a revelation that the Securities and Exchange Commission (SEC) incurred a N9 billion deficit in three years as a result of market meltdown by the Director-General, Alhaji Lamido Yuguda, the Senate has raised the alarm over imminent insolvency, if nothing was done to salvage the situation.
Yuguda explained that the global economic meltdown occasioned by coronavirus has affected the fortunes of Securities and Exchange Commission.
The situation was made open during an interactive joint session with the Senate Committees on Finance, National Planning, Petroleum Upstream, Downstream and Gas, Chaired by Senator Solomon Olamilekan Adeola.
The Chairman posited that the Commission would go bankrupt any moment if nothing was done immediately. Revenue generating agencies have been under scrutiny, but at Wednesday’s hearing, it was disclosed that the Capital Market regulatory body projected revenue for 2021 was N11,502,340,000,000.00 billion with a personnel cost of N10,239,933,504.65 billion.
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.
Expressing dismay, the Chairman of the Committee pointed out an exaggerated personnel cost, and wondered how could a regulatory body was also not generating the venue.
“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 challenged the Director-General to think out of the box.