Barring any last minute change, the Securities and Exchange Commission is set to reduce its workforce to cut costs as revenue dwindles.
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 per cent 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.