The Securities and Exchange Commission (SEC) has promised to cut operation costs to increase profitability in the next two years. This development came as a result of the Senate’s scrutinization of the capital market regulator’s finances. The Commission disclosed it was outlining a fiscal deficit of ₦5.17 billion for 2021, with staff expenses gulping a significant amount of its income.
Yesterday, however, the Commission’s Director-general was quoted saying that SEC making plans towards overturning the current financial situation, which according to him was a result of the challenging times for capital market enthusiasts during the pandemic.
The Director-general disclosed that the Securities and Exchange Commission had been paying twenty-five percent of its total income into the government treasury, stating that ₦1.5 billion had been paid by the end of June. Yuguda explained:
“If we look at the Medium-Term Expenditure Framework, which we initiated in 2020, and take a glance at 2022 and 2023, you will notice we have managed to work on our operating costs so that by 2023, the shortfall will eventually turn into a surplus of ₦1.24 billion and by 2024, we should have a ₦2.5 billion surplus.”
“As a result, we need everyone’s help to integrate the type of transformation we’re planning at the Securities and Exchange Commission. That thirty percent which accounts for the majority of the staff costs is a component of the set we are aiming for the early retirement scheme.”
“The commission is very much ready to implement this policy but we lack the financial capacity to achieve that at the moment. We have been involved in many income-rising moves to make sure the Commission continues to run effectively. We a focused on this move and we are intentional about making it a reality.”
He also said that that the Commission’s high operating costs were being sliced significantly.
“We have looked at the staff cost of the Commission and have aggressively cut down certain parts of our staff income, and we have managed to generate over ₦2 billion from this move thus far,” he further stated.
He stated that the commission had contacted a variety of organizations, including the African Development Bank, the Financial Sector Development Africa, and several other financial backers, to shore up the funds.
The Director-general went on to say that this is expected to generate a grant of N3.84 billion, with more to come in the near future to enhance operations.