BusinessWe Spend Over N6bn On Staff Salaries – SEC DG

We Spend Over N6bn On Staff Salaries – SEC DG

November 21, (THEWILL) – The Director-General of Securities and Exchange Commission (SEC), Mr Yuguda Lamido, has disclosed that the Commission spent over N6 billion on staff salaries in 2021. Added to other overhead costs, the total expenditure is N8 billion.

Lamido’s disclosure also revealed that a huge chunk of the emolument was consumed by top management staff of the Commission who earn “fat salaries”.

He made these disclosures while defending SEC’s 2022 budget and performance for 2021 before the Senate Committee on Capital Market in Abuja.

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The SEC boss also explained that the projected revenue and recurrent expenditure fell significantly behind target.

Accompanied by top management staff of the Commission, Lamido said the capital market regulatory agency would retire about 152 top management staff who earn “fat salaries”, as a way of reducing the financial burden of the Commission.

He said this would pave the way for recruitment of fresh workers, which will be less burdensome financially.

Describing SEC’s N8 billion expenditure as outrageous, members of the panel said it was wrong for the Commission to have expended close to 90 per cent of revenues made in the 2021 fiscal year on staff salaries and emoluments.

Mr Yuguda had said that N11.5 billion was projected as revenue for 2021, of which N2.7 billion was realised as at June with the hope of making more before the year runs out.

“Total recurrent expenditure for 2021 was budgeted at N13.53 billion, but the actual expenditure was N4.063 by the end of June. Our budgeted deficit was N5.173 billion, but the actual deficit as at end of September was N2.834 due to funding of it from our reserve.

“Although revenue performance is still weak, a series of innovations, such as the newly introduced charges for secondary investors, will boost it from the 2022 fiscal year and beyond,” he explained.

Expressing dissatisfaction over the financial presentation by SEC, the Chairman of the panel, Ibikunle Amosun, said, “Your emolument was almost N6 billion out of the N9 billion and other expenses. So, clearly you are spending almost all of the revenue that comes to you on staff emolument and other related things.

“You should give us the number of staff that you have in the commission, such that we need to look at what is happening. If you generate about N9 billion and almost N8 billion is purely for servicing the staff, you are having a huge deficit of almost N4 billion. When you continuously make this deficit, year in, year out, then something is wrong.”

Lamido, however, assured the panel of plans by the Commission to reduce expenditure and increase revenue.

He said that to give room for more financial inflow, SEC plans to retire about 152 top management staff earning “fat salaries” so as to pave the way for recruitment of fresh workers.

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