SEC considering two approaches to increase revenue
The Securities and Exchange Commission said it is considering downsizing its workforce to cut costs in order to boost its dwindling revenue.
The Director-General, SEC, Lamido Yuguda represented by Executive Commissioner, Corporate Services, SEC, Ibrahim Boyi disclosed this in Abuja on Tuesday while appearing before the House of Representatives Committee on Finance.
He explained that to boost the revenue and reduce the cost of operation the SEC’s management and board were considering two options to salvage the commission from its financial crunch.
“Unfortunately for SEC, for 2019, 2020, and this year, we are likely to end up with some deficits because of a revenue shortfall,” he stated.
Boyi pointed out that “There are two approaches; one is to see how to boost or widen the revenue of the commission, while the other is to see how to reduce the running cost of the commission.
“Unfortunately, almost 80 per cent of our cost is personnel cost. So, we need to find a way of chopping off that cost, and I think work is already going on.”
He also admitted that “we are top-heavy,” disclosing that almost 50 per cent of SEC’s staff are senior managers.
“The idea really is to make the commission more sustainable and make sure that our revenue is going forward,” said Mr Boyi.
Speaking on SEC’s revenue remittances, Boyi said the commission had reconciled fully up to 2018.
He said, “You know, in 2020, there was a new directive by the Federal Government that whether you are a self-funding agency or not, 25 per cent of revenue that hits your TSA (Treasury Single Account) will be deducted and that has been going on.
“We are also going to factor that into our subsequent reconciliation with the Office of the Accountant General (of the Federation). Unfortunately, for SEC in 2019, 2020, and this year, we are likely to end up with some deficits because of the revenue shortfall.”
The Deputy Chairman, House Committee on Finance, Saidu Abdullahi, who presided over the hearing, directed SEC to reconcile its 2019 and 2020 accounts with the Office of the Accountant-General of the Federation and to explore ways of generating more revenue.