Barbara Bako, Abuja.
The National Assembly has commended the Securities and Exchange Commission (SEC) for strengthening its financial sustainability through cost-cutting measures and improved revenue generation.
The commendation was given on Tuesday by the Deputy Chairman of the House of Representatives Committee on Finance, Hon. Saeed Musa Abdullahi, during the 2026 Revenue Monitoring Exercise with the Commission in Abuja.
Abdullahi praised the SEC’s efforts to improve its finances and urged the regulatory agency to sustain the momentum, stressing that the exercise was designed to promote better performance rather than witch-hunt government agencies.
“DG, you have done significantly well. We have followed the progress of the SEC over the years and urge you to keep the flag flying. We will continue to celebrate you when you do well. This exercise is not to witch-hunt any agency; it is aimed at ensuring better performance, especially at a time when the country is facing serious fiscal challenges,” he said.
He also challenged the Commission to exceed its 2026 revenue target by at least 20 percent.
“You have told us your revenue projection for 2026, but we believe you can do more. We urge you to surpass your projection by at least 20 per cent, or even more,” Abdullahi said.
Earlier, the Director-General of the SEC, Dr. Emomotimi Agama, explained that the Commission operates without budgetary allocation from the Federal Government, relying instead on revenue generated from the capital market to fund its operations while also remitting funds to government.
Agama said the arrangement was at variance with the principles of the International Organization of Securities Commissions (IOSCO), which, he noted, provide for financial independence of securities regulators, with governments expected to offer support where necessary.
“Going by IOSCO principles, the SEC is expected to be financially independent. The government is supposed to provide support for the running of the Commission. However, due to the paucity of funds, all the money used to fund the Commission comes from the market. The SEC does not receive any funding from the government; rather, it pays money to the government,” he said.
He further disclosed that statutory deductions are automatically made from the Commission’s revenue once funds are credited to its account with the Central Bank of Nigeria (CBN), limiting the SEC’s access to the funds before the deductions are effected.
“When these funds hit our account with the CBN, deductions are made directly by the government. We do not have access to the funds before the deductions are effected,” Agama added.
The SEC DG said the Commission was also mindful of the need to avoid imposing additional financial burdens on market operators to fund its activities.
He disclosed that, with the approval of the Minister of Finance, the Commission secured a waiver allowing it to retain 20 per cent of its income to support its operations.
“We are regulators and are not expected to ask the market for money. With the kind permission of the Honourable Minister of Finance, we obtained a 20 per cent waiver on deductions to ensure our operations are not hindered,” he said.
Agama also disclosed that the SEC had secured a grant from the African Development Bank to procure a modern market surveillance system.
According to him, the system is expected to be deployed this year to enhance the Commission’s oversight of Nigeria’s capital market and bring its regulatory operations in line with international standards.
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