The Security and Exchange Commission (SEC) is gradually becoming insolvent and could go bankrupt very soon, according to Senate Joint Committees on the 2022-2024 Medium-Term Expenditure Framework and Fiscal Strategy.
The committee came to this conclusion when the director-general of the SEC, Lamido Yuguda, appeared before the Committees and disclosed that the commission would run a N5.17 billion deficit for the 2021 financial year.
Yuguda said the commission has projected total revenue of N11 billion for 2021 while it projected an expenditure of N16.7 billion, with a deficit of N5.17 billion.
“As of the end of June 2021, our revenue performance was actually N2.8 billion while our total expenditure was N4.45 billion and the deficit was N1.77 billion.
“Our expenditure is more than our total receipts. The total revenue of the SEC has been badly affected by the market meltdown and the COVID-19 pandemic.
“Most of our expenditure are staff cost because we have a staff strength of 544. The cost includes salaries and pensions paid to retired workers.
“The total personnel cost that was projected N10.32 billion for 2021 but that has taken into consideration, the N2.3 billion budgeted for early retirement programme which has not happened.”
The Chairman of the Senate Committee on Finance, Solomon Adeola, asked the DG how the commission had been meeting its obligations and Yuguda said the SEC had an investment that was yielding revenue.
“We have N6 billion investment that has been financing the deficit over the years. We invested in government treasury bills,” The SEC boss said.
