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Thursday, May 30, 2024

SEC May Go Bankrupt Soon, Says Senate Committee

SEC May Go Bankrupt Soon, Says Senate Committee

The Nigerian Senate on Thursday raised the alarm that the Security and Exchange Commission (SEC), was gradually becoming insolvent and could go bankrupt very soon.

The red chamber gave the verdict when SEC’s director general, Lamido Yuguda, appeared before the Senate Joint Committees on the 2022-2024 Medium-Term Expenditure Framework and Fiscal Strategy.

The DG said the agency had a total revenue target of N11bn for 2021 but with a projected expenditure of N16.7bn giving a deficit of N5.17bn

He said, “As of the end of June 2021, our revenue performance was actually N2.8bn while our total expenditure was N4.45bn and the deficit was N1.77bn.

“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 pension paid to retired workers.

“The total personnel cost that was projected N10.32bn for 2021 but that has taken into consideration, the N2.3bn budgeted for early retirement programme which has not happened.”

The chairman of the Senate Committee on Finance, Senator Solomon Adeola, asked the DG how his agency had been meeting its obligations and Yuguda said the SEC had an investment that was yielding revenue.

The SEC boss said, “We have a N6bn investment that has been financing the deficit over the years. We invested in government treasury bills.”

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