The Senate has expressed shock when told by the Securities and Exchange Commission, SEC, that it spent N6bn to service its staff out of the N9bn it generates every year.
The Upper House raised the alarm when the SEC Director-General, Lamido Yuguda appeared before the Senator Ibikunle Amosun, (APC, Ogun Central), led Committee on Capital Market to defend the budget performance of the agency in 2021 and projections for 2022.
At the meeting, the Senate queried the rationale behind spending such a huge sum on salaries and emoluments of staff leaving behind nothing.
Senator Amosun who led the attack said, “Your emolument was almost N6bn out of the N9bn 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. We need to look at what is happening.
“You are having a huge deficit of almost N4bn. When you continuously make this deficit, year in, year out, then something is wrong.”
But SEC defended itself denying that it was not being frivolous on spending of revenues made.
It told the Senate that, “A total of N11.5bn was projected as revenue for 2021 out of which N2.689bn was realized as at June with the hope of making more before the year runs out.
“Total recurrent expenditure for 2021 was budgeted at N13.53bn but the actual expenditure was N4.063bn by the end of June.
“Our budgeted deficit was N5.173bn but the actual deficit as at end of September was N2.834bn due to funding of it from our reserve.
“Though revenue performance is still weak but series of innovations like newly introduced charges for secondary investors, will boost it up from 2022 fiscal year and beyond.
“In giving room for more financial inflow, we are planning to retire about 152 top management staff with fat salaries in paving way for recruitment of fresh workers with attendant less financial burdensome on the commission.
“There are measures at reducing expenditure and also measures at increasing revenue of the commission.”