You are here: HomeNews2021 11 17Article 497122

General News of Wednesday, 17 November 2021

Source: punchng.com

Senate knocks SEC for spending revenues on salaries, emoluments

Director-General of SEC, Yuguda Lamido Director-General of SEC, Yuguda Lamido

The Senate has faulted the claims by the Securities and Exchange Commission to spend most of the revenues it generated largely on salaries and emoluments of staff.

The Senate through its Committee on Capital Market insisted that it was wrong of SEC to have expended close to 90 per cent of revenues made in the 2021 fiscal year on staff salaries and emoluments.

The SEC, however, denied being frivolous on the spending of revenues made.

The Senate anger against the Commission ensued when the Director-General of SEC, Yuguda Lamido, appeared before the Committee on Capital Market.

Lamido was there to defend his agency’s 2021 budget performance and the projections for 2022.

Yuguda in his presentation said, “A total of N11.5bn was projected as revenue for 2021 out of which N2.689bn was realised as of June with the hope of making more before the year runs out.

“Total recurrent expenditure for 2021 was budgeted at N13.53bn but the actual expenditure was N4.063bn by the end of June.

“Our budgeted deficit was N5.173bn but the actual deficit as of the end of September was N2.834bn due to funding of it from our reserve

“Though revenue performance is still weak, a series of innovations like newly introduced charges for secondary investors, will boost it up from the 2022 fiscal year and beyond.

“In giving room for more financial inflow, we are planning to retire about 152 top management staff with fat salaries in paving way for recruitment of fresh workers with attendant less financial burdensome on the commission

“There are measures at reducing expenditure and also measures at increasing revenue of the commission,” he said.

The Chairman of the Committee, Senator Ibikunle Amosun, faulted the expenses made by the commission from its generated revenues.

He said, “Your emolument was almost N6bn out of the N9bn and other expenses, so clearly you are spending almost all of the revenue that comes to you on staff emolument and other related things.

“You should give us the number of staff that you have in the commission such that we need to look at what is happening. If you generate about N9bn and almost N8 billion is purely for servicing the staff.

“You are having a huge deficit of almost N4bn. When you continuously make this deficit, year in, year out, then something is wrong”, he said.

Also, Senator Kashim Shettima asked the SEC DG, what measures he had taken so far to jack up the revenue and trim down your expenses.

Settima said, “You are already bleeding and this bleeding will continue and if care is not taken, you will reach a point where you cannot even service your obligation.”

Similarly, Senator Ayo Akinyelure also faulted the agency for spending all its income on staff salaries and income.

He said, “We will be interested to have details on this because you just came on board but civil servants are there forever until 35 years or 60 years before they leave the service.

“You need the correct manpower to ensure that you get enough revenue to have the capacity if well accounted for to ensure that on yearly basis, there must be positive variance at the end of the year to remit it to consolidated revenue account of the government. Your organization is not a charitable organization.

“You are supposed to trade in the market, regulate the market, make enough income, make sure all your workers are fine.

“How can you have N2.5bn for budget for 2021 now you are now proposing a budget of N1.5 in the current year only for salaries and payroll allowance? What had accounted for that difference? Does it mean they have gone and no replacement.”

In his response, the SEC DG said, “We had the request for the nominal roll and we did give the full nominal roll of the staff last year. We are happy to repeat it this year if needed.”

Join our Newsletter!