SEC gets National Assembly backing on fiscal sustainability drive
By Obas Esiedesa, Abuja
The National Assembly has endorsed the Securities and Exchange Commission’s (SEC) efforts to strengthen its fiscal sustainability through cost-cutting measures and improved revenue generation.
Deputy Chairman of the House of Representatives Committee on Finance, Hon. Saeed Musa Abdullahi, gave the endorsement on Tuesday during the 2026 Revenue Monitoring Exercise with the Commission in Abuja.
Abdullahi commended the SEC’s financial management efforts and urged the Commission to sustain the momentum.
“Director General, 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.
“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 added.
Earlier, SEC Director-General, Dr. Emomotimi Agama, told the committee that, in line with the principles of the International Organization of Securities Commissions (IOSCO), securities regulators are expected to operate independently, with government support provided where necessary.
Agama said the SEC receives no budgetary allocation from the Federal Government, relying entirely on internally generated revenue from the capital market while continuing to remit funds to the government.
“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 explained that statutory deductions are made automatically once the Commission’s revenue is paid into its account with the Central Bank of Nigeria (CBN), before the SEC can access the funds.
“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 said.
He noted that the Commission avoids imposing excessive charges on capital market operators to finance its operations. According to him, the SEC obtained approval from the Minister of Finance to retain 20 per cent of its revenue through a waiver on statutory deductions.
“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 Commission had secured a grant from the African Development Bank to acquire a modern market surveillance system, expected to be deployed this year to strengthen oversight of Nigeria’s capital market and align it with international standards.
The post SEC gets National Assembly backing on fiscal sustainability drive appeared first on Vanguard News.