SEC records N9bn deficits in 3 years, blames meltdown

the Commission recorded a N2.9bn deficit in 2019; N4.3bn in 2020 and N1.7bn as of June 2021.

The Security and Exchange Commission (SEC) said it has recorded N9 billion deficits in the last three years.

The agency disclosed this in a document submitted to the Senate Joint Committees on Finance, National Planning, Petroleum Upstream, Downstream and Gas chaired by Senator Adeola Solomon Olamilekan.

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The Senate panel expressed concern that the deficit may lead the Commission to go bankrupt.

The Director-General of agency, Lamido Yuguda, at an interactive session with the committee members on the 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), attributed the deficit to global economic meltdown and COVID-19 pandemic.

As contained in the document he submitted to the committee, the Commission recorded a N2.9bn deficit in 2019; N4.3bn in 2020 and N1.7bn as of June 2021.

Yuguda further disclosed that his agency’s projected revenue for 2021 was N11.5bn with a personnel cost of N10.2bn.

Responding, Sen. Olamilekan said, “Your submission gives us a wrong impression about the 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 N9bn, 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.

A member of the committee, Senator Kashim Shettima (APC Borno), challenged the Director General to think out of the box.

“In the next two years, you are going to go bankrupt. Right now, you are in deficit and unless 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,” the lawmaker said.