The Securities and Exchange Commission (SEC) has said it is considering sacking some workers in order to cut costs as the commission’s revenue has dwindled.
According to the apex regulator of the capital market, the layoff would affect mostly senior members of staff.
This was disclosed by the Director-General of SEC, Lamido Yuguda, on Tuesday while appearing before the House of Representatives’ Committee on Finance.
Yuguda, who was represented by SEC’s Executive Commissioner for Corporate Services, Ibrahim Boyi, said the commission was determined to boost its revenue and reduce the cost of operation.
Boyi said, “Unfortunately, almost 80 per cent of our cost is staff cost. So, we need to find a way of chopping off that cost and I think work is already going on. We are top heavy, almost 50 per cent of our staff are from senior managers.
“So, that is the mandate I think we have taken as management and the board. And I am sure that in a matter of a few months, we will be able to come with a solution. But the idea really is to make the commission more sustainable and make sure that our revenue is going forward.”
While speaking on SEC’s revenue remittances, Yuguda said the commission had reconciled fully up to 2018.
He said, “You know, in 2020, there was a new directive by the Federal Government that whether you are a self-funding agency or not, 25 per cent of revenue that hits your TSA (Treasury Single Account) will be deducted and that has been going on.
“We are also going to factor that into our subsequent reconciliation with the Office of the Accountant General (of the Federation). Unfortunately, for SEC in 2019, 2020 and this year, we are likely to end up with some deficits because of the revenue shortfall.”