The Securities and Exchange Commission has said it is considering reducing its workforce to cut costs as revenue dwindled.
The apex regulator of the capital market said the cut would mostly affected senior members of staff.
The Director-General, SEC, Lamido Yuguda, disclosed this in Abuja on Tuesday while appearing before the House of Representatives’ Committee on Finance.
The committee has been inviting ministries, departments and agencies of the Federal Government to account for their revenue generation and remittances into the Federation Account.
Yuguda, who was represented by SEC’s Executive Commissioner for Corporate Services, Ibrahim Boyi, said the commission was determined to boost its revenue and reduce the cost of operation.
He said, “Unfortunately, almost 80 per cent of our cost is staff cost. So, we need to find a way of chopping off that cost and I think work is already going on. We are top heavy, almost 50 percent of our staff are from senior managers.
“So, that is the mandate I think we have taken as management and the board. And I am sure that in a matter of a few months, we will be able to come with a solution. But the idea really is to make the commission more sustainable and make sure that our revenue is going forward.”
Speaking on SEC’s revenue remittances, Yuguda 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.
NCDMB and NEXIM Sign $30 Million Agreement to Support Oil and Gas Services Firms
The Nigerian Content Development Monitoring Board (NCDMB) and the Nigerian Export-Import Bank (NEXIM) yesterday signed a $30 million agreement on working capital and capacity building fund to support oil and gas services firms.
Simbi Wabote, Executive Secretary, NCDMB and Managing Director, NEXIM Bank, Abba Bello, signed the funding agreement at the Abuja office of the Nigerian content monitoring agency.
Wabote said the Oil Producers Trade Section, Independent Petroleum Producers Group and Petroleum Technology Association of Nigeria had raised concerns over funding challenges confronting oil services firms, as this had made most of the companies to consider downsizing their staff.
He said, “The OPTS and IPPG had at some point raised before the NCDMB the inability of most indigenous contractors to provide services to them due to challenges of funding.
“This was especially when we got struck by the COVID-19 pandemic. I recall receiving several letters particularly from IPPG trying to see how we can support this.”
He added, “I also recall receiving similar letters from PETAN when the COVID-19 struck and most of their members had nothing to do anymore.
“This is because companies were shut down and their members were threatening on how to downsize and take Nigerians off their payrolls.
“Based on this, we then set up a committee to say how do we support these firms with the provision of working capital.”
Wabote noted the roll-out date for the fund would be July 1, 2021 and that the fund size of $30m would be boosted by matching funds of the same amount to be provided by NEXIM in naira (to be converted at prevailing official exchange rate).
“The scheme shall cover loans for working capital support and capacity building, oil service contracts, invoice discounting including acquisition of low-end equipment to service short-term contracts/service obligations,” he stated.
He said the target market comprised Nigerian oil service providers which belonged to a professional association in the Nigerian oil and gas industry and commercially viable with a business relationship with either an international oil company or a major Nigerian oil firm.
“Maximum amount that can be borrowed by a single obligor is $1m or its naira equivalent at the official exchange rate prevailing at the time of borrowing,” Wabote said.
He added, “Tenor shall be up to 12 months for working capital loans and up to three years for capacity building loans with moratorium of up to 12 months.
“The applicable interest rate shall be five per cent per annum all-in for dollar-denominated loans and eight per cent all-in per annum for naira-denominated loans and the rate shall be fixed throughout the tenor of the loan.”
LivingTrust Mortgage Bank Appoints Mr. Timothy Olorunsogo Gbadeyan as Company’s Secretary
LivingTrust Mortgage bank has appointed Mr. Timothy Olorunsogo Gbadeyan as company secretary/head of legal services.
The bank disclosed in a statement signed by Ikechukwu Omuku, the Finance Officer/Head, Investor Relations, LivingTrust Mortgage Bank Plc.
The statement reads “We wish to notify The Nigerian Stock Exchange and the investing public of the appointment Mr. Timothy Olorunsogo Gbadeyan as Company Secretary/Head, Legal Services of LivingTrust Mortgage Bank Plc.
“Mr. Gbadeyan is a consummate corporate attorney with experiential background in deals advisory, real estate finance, facioring, general commercial transactions, corporate governance, company secretarial services and regulatory compliance. Until his appointment, he was the Head of Legal Services of Infinity Trust Mortgage Bank Plc.”
Farmforte, Others Signs MoU To Strengthen and Sustain Growth in Agricultural Sector
Farmforte Limited has signed a strategic Memorandum of Understanding with the Agricultural Fresh Produce Growers and Exporters Association of Nigeria; HYBR, a pan-African innovation firm; and ALTS, a consulting and strategy development firm.
The firm said in a statement on Sunday that the partnership would strengthen common interest cooperation and stimulate inclusive and sustainable growth within the agricultural sector, by capitalising on the synergy and comparative advantage offered by each organisation.
Speaking during the signing ceremony, Farmforte Co-Chief Executive Officer, Osazuwa Osayi, said, “Our mid to long-term strategic goals are further reaffirmed, as this partnership will facilitate the sharing of knowledge, ideas, and expertise across the agricultural sector.
“We will collectively address initiatives and approaches concerning agricultural investments, food security, and the overall robustness of the value chain.”
He said the collaboration would also unlock the full potential of the sector and place it on a renewed path for success, especially within a post-pandemic economy.
The President of AFGEAN, Tajuddeen Dantata, said, “By creating dialogue and fostering investment in the horticulture sector, this partnership will endeavor to support Farmforte in its exporting efforts by improving operational efficacy and cost-savings, while ultimately driving socio-economic growth in the country.”
The Chief Executive Officer, HYBR, Charles Ojei, said to drive inclusion, sustainability, job creation, and Nigeria’s overall economic growth, the optimisation of the agriculture value chain was critical.
“This collaboration is a fusion of the complementary capabilities of all partners to move a bigger agenda forward.”
The Managing Partner, ALTS, Akintunde Sawyerr, said, “The goal of this partnership is to support Farmforte’s vision of becoming the largest agribusiness by 2035 via scalable and world-class innovation across its enterprise.”
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