To cut down on overheads and pave the way for higher financial inflow, the Securities and Exchange Commission (SEC), said it plans to retire up to 152 top management staff.
Among those to be affected are staff whose wages are categorised as “fat salaries” to give room for the “recruitment of fresh workers” to reduce financial burdensome on the Commission.
The Director-General, SEC, Yuguda Lamido, disclosed this yesterday, during the 2022 budget defence before the Senate.
Members of the Senate Committee on Committee on Capital Market had expressed outrage that the Commission spends about 90% of its revenue on staff salaries and emoluments alone.
Indeed, Yuguda had revealed that SEC spent over N6 billion on staff salaries with other overhead costs totalling about N8 billion in 2021.
The Committee, headed by Senator Ibikunle Amosun, swiftly responded that it was wrong for SEC to have expended close to 90% of revenues made in the 2021 fiscal year on staff salaries and emoluments.
Agreeing, Yuguda, who led a team of his officials, said the Commission devised the mass retirement to reduce expenditure as well as increase revenue.
In his presentation on the agency’s budget performance for 2021 and projections for 2022 to the Committee, Yuguda said although N11.5 billion was projected as revenue for 2021, only N2.7 billion was realised as at June, and expressed the hope of making more before the year runs out.
You are having a huge deficit of almost N4 billion. When you continuously make this deficit, year in, year out, then something is wrong.
He continued: “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.
“Though revenue performance is still weak but series of innovations like newly introduced charges for secondary Investors, will boost it up from the 2022 fiscal year and beyond.”
Despite Yuguda’s assurances to cut down personnel cost and enhance revenue, the Committee Chairman Ibikunle Amosun, was however not impressed.
He 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.”