Key Takeaways
- The National Assembly has commended the Securities and Exchange Commission (SEC) for its strong financial management.
- The SEC has achieved fiscal sustainability through improved revenue generation and cost management.
- The Commission has been challenged to exceed its revenue target by at least 20 per cent.
The National Assembly has commended the Securities and Exchange Commission (SEC) for strengthening its fiscal sustainability through improved revenue generation and prudent cost management. This commendation was given during the 2026 Revenue Monitoring Exercise with the Commission in Abuja, where Deputy Chairman of the House of Representatives Committee on Finance, Hon. Saeed Musa Abdullahi, praised the SEC's efforts.
Abdullahi addressed the SEC management, stating that the Commission has done significantly well and urged them to continue their good work. He emphasized that the exercise was not meant to criticize any agency but rather to ensure better performance, especially during a time when the country is facing serious fiscal challenges. The lawmaker also challenged the Commission to surpass its revenue projection by at least 20 per cent, or even more.
Financial Independence and Operations
Responding to the commendation, SEC Director-General, Dr Emomotimi Agama, said the Commission remains financially independent in line with the principles of the International Organization of Securities Commissions (IOSCO). He explained that the SEC does not receive any funding from the government; instead, it pays money to the government. All the money used to run the Commission comes from the market, and statutory deductions are made automatically once the Commission's revenue is paid into its Central Bank of Nigeria (CBN) account.
Agama disclosed that the Commission secured approval from the Minister of Finance to retain 20 per cent of its income to support operations. He emphasized that the 20 per cent waiver ensures the SEC's operations are not hindered, as regulators are not expected to ask the market for money. The SEC has also secured an African Development Bank grant to deploy a modern market surveillance system this year.
In conclusion, the National Assembly's commendation of the SEC is a testament to the Commission's hard work and dedication to achieving fiscal sustainability. The SEC's commitment to prudent cost management and revenue generation has earned it recognition and praise from the National Assembly.
Why This Matters
The SEC's financial independence and strong financial management are crucial for maintaining a stable and secure market, and the Commission's efforts will have a positive impact on the country's economy. The SEC's ability to regulate the market effectively and provide a secure environment for investors is essential for the country's economic growth and development.