Economy

SEC moves to reduce cost, targets profitability in 2 years

Published

on

SEC moves to reduce cost, targets profitability in 2 years

By Chinyere Joel-Nwokeoma

The Securities and Exchange Commission (SEC) has unveiled plans to reduce its operating costs in order to boost profitability within the next two years.

The Director-General of SEC, Mr Lamido Yuguda, said this in a statement made available to the News Agency of Nigeria in Lagos.

Yuguda said the commission had been paying 25 per cent of gross revenues into the coffers of government.

He said that the total revenue paid so far by SEC into the treasury as of the end of June 2021 was about N1.5 billion.

Yuguda noted that the commission had been operating under very difficult circumstances occasioned by the coronavirus pandemic.

He explained that the commission was currently superintending over a market affected by the negative impact of the coronavirus pandemic.

The director-general said that steps were being taken to reverse the fortunes of the apex regulator of the capital market.

“If we go through the Medium-Term Expenditure Framework (MTEF) which we started last year, if we look at 2022 and 2023, you will see that we have worked on our expenditure so that by 2023, the deficit will actually turn into a surplus of N1.24 billion and by 2024 we should have N2.5 billion surplus.

“We, therefore, need the support of all to engineer the kind of transition we are thinking of at the SEC and that 30 per cent which is taking most of the staff cost is part of the set we are targeting for the early retirement programme.

“There is a lot of interest within the commission to do it but we are really short of the funds to do it now.

“We have done a lot of revenue rising drives just to ensure that the commission stays on track.

“This is something we are mindful of and we have the intent and capacity to deliver on this.”

On the high overhead costs, Yuguda explained that this was being reduced aggressively.

“It has reduced because we have since we came, aggressively looked at the overhead and staff cost and reduced certain components of our staff pay that has generated over N2 billion of savings as at now.

“If you take the MTEF numbers, as you go forward, you find that by 2024 staff cost reduces to only N5.88 billion. So that is the trajectory that we are working on,” he said.

Yuguda said that SEC had approached a number of institutions  including the African Development Bank, Ficial Sector Development Africa and a number of other donors to shore up resources.

This, he said, was expected to fetch a grant figure of N3.84 billion, adding that more grant was being expected in the near term to boost operations.

He added: “The truth of the matter is that not only for the sake of cutting down on the cost of the SEC, when we came last year, we discovered there has been no IT investment in the SEC for over a decade.

“So, our IT infrastructure is now obsolete so we have to renew that.

“And given this difficulty, we could only do that by going out and looking for grant and thankfully we have gotten very positive feedback. But this grant is only going to address investment in IT infrastructure.

“We are working hard to ensure we deliver, from 2023 the tide will begin to change and that is because of the massive efforts that we have made both on the revenue front and on the cost front.”

The News Agency of Nigeria reports that the Senate on Sept. 2, 2021, raised the alarm that the nation’s capital market regulator, SEC, was going bankrupt.

The lawmakers made the observation when Yuguda, made a presentation before the Senate Joint Committees on the 2022-2024 MTEF and Fiscal Strategy.

Senator representing Lagos West and Chairman Senate Committee on Fice, Mr Solomon Adeola,  the Chairman of the Senate Joint Committee was the first to raise observation on the personnel cost.

They slammed the commission for recording N9 billion deficits in the past three years.

As contained in the document submitted by the director-general, SEC recorded N2.9 billion deficit in 2019; N4.3 billion in 2020 and N1.7 billion as of June 2021.  (www.)

Source: NAN

Short Link: https://wp.me/pcj2iU-3C3d

NNN

NNN: :is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor @ nnn.ng

Recent Posts

Pharmaceutical company reasserts commitment to achieving zero malaria tolerance 77 teachers smile home with laptops in Surulere, Lagos Defection: President Buhari welcomes Femi Fani-Kayode to APC Lack of fice hinders women participation in politics – Emir 85, 265MT of LPG supplied nationwide in August – PPPRA African Development Bank’s SEFA provides $1 million to kick off modernization of Africa’s Hydropower Fleet DPR seals 11 illegal gas plants, 2 petrol stations in Abuja Africa faces 470m COVID-19 vaccine shortfall in 2021 – WHO Wada Maida’s daughter lauds FG for naming HQ after father Somali president withdraws PM’s powers in escalating row China fully vaccinates more than 1 billion people Angola’s National Oil, Gas and Biofuel’s Agency (ANPG) Highly Satisfied with Final Results from 2020 Bid Round Alert raised over quake surge around Canaries volcano Our chairman is hale, hearty – EFCC Putin to attend 2022 Beijing Olympics: minister In Dialogue with Eswatini, Committee on the Rights of the Child welcomes legislative progress and asks about child Health West Africa bloc ECOWAS meets over Guinea coup Meet Africa’s New Generation of Health Innovators Kenyans voice fury over fuel price hike Coronavirus: Africa faces 470 million COVID-19 vaccine shortfall in 2021 The International Organization for Migration is calling on Journalists to enter the inaugural West and Central Africa Migration Journalism Award 2021 Majority of fans favour more frequent men’s FIFA World Cups – global survey Short Stories on Sustainable Development Goals (SDGs) by African Young People AMISOM conducts field inspection of ongoing Quick Impact Projects in Baidoa UNESCO steps up efforts for biodiversity conservation with the designation of 20 new biosphere reserves International Islamic Trade Finance Corporation signs ten high-level Trade Agreements representing more than US$1.2bn The Gambia Launches Ambitious Renewable Energy Projects (By Miguel Artacho) Biden backs top general on calls to China over Trump mental state Philippines’ Duterte will not cooperate with ICC drug war probe Pandemics: UK expert advises Nigerian leaders, others on collaborations At least 50 killed in Yemen clashes: military sources Ghana launches National Breastfeeding Week White House offers Nicki Minaj phone call after viral vaccine claims: reports New South Sudan Parliament can ‘infuse urgency’ into peace process Putin says dozens in Kremlin inner circle have Covid ‘Kill them’: Philippines’ Duterte wages war on drugs Indian peacekeepers in Malakal teach youth carpentry, welding, masonry and more Hapag-Lloyd inaugurates its own representation in Morocco Ugo Obasi joins Ingenico to drive new business in Nigeria and West Africa President of Egypt Receives Credentials of Qatari Ambassador United Nations Police (UNPOL) builds community policing capacities to bolster safety and security of residents on Tonj south Liquid Intelligent Technologies connects the Democratic Republic of Congo and Congo Brazzaville with high-speed connectivity using wireless optical communication technology Secretary-General of Ministry of Foreign Affairs Meets the Ethiopian Ambassador Envoy fears heightened abductions as Nigeria schools resume ECOWAS meets today to decide next step on Guinea DPR targets N3.2 trillion revenue by December 2021 I have no apologies saying Buhari has good heart – Umahi Nigeria to assist DR Congo to establish national fire service Chimamanda tasks German Chancellor Merkel on power deal FG says 25 % of diseases in Nigeria caused by mycotoxins – Minister