The Securities and Exchange Commission (SEC) has blamed the nation turbulent capital market for the revenue deficit of N2.1 billion, a decline from revenue projections for 2016. The Director General of SEC, Mr. Munir Gwarzo, who spoke yesterday when he appeared before the House of Representatives Committee on capital markets for the 2016 Budget Defence, said there has been a plummet in the revenue base of the commission from N5.2 billion to N2.9 billion.
We are going through very turbulent period in the capital market which has affected our revenue projection of N5.2 billion as revenue for 2016 but we got N2.9 billion which shows that we are short of what we budgeted, he said. Gwarzo added that SEC has not been able to realise revenue through penalties for infractions, as there is higher level of compliance with regulations by the stock market operators, and has not been able to derive income on investments due to the Treasury Single Account (TSA).
He further disclosed that SEC has not paid for the only contract awarded for the supply of UPS worth N72 million as the contractor sought extension due to the fluctuating rate of foreign exchange.
The Chairman of the Committee, Hon. Tajudeen Yusuf (Kogi PDP), raised issues with the expenditure of N4.6 billion out of an appropriation of N5.4 billion on staff emoluments, particularly as SEC was not able to achieve its projected revenue. He also noted that SEC has expended N151 million on children education allowance out of N162 million, alongside N142 million for dressing allowances.
Hon. Danburam Nuhu (Kano APC) expressed concern that SEC has already expended 80 percent of its 2016 budget. I am more worried about some of the expenditures in particular, as it has to do with your staff emolument. For me, you are paid for no value, because here you are in an organisation that is supposed to be generating revenue but you are more concerned about what you get, than what the organisation is getting. This is worrisome for us but should not be allowed to continue, Nuhu said.