Yemisi Izuora
The National Assembly (NASS) has commended the Securities and Exchange Commission (SEC) for improving its fiscal sustainability through cost-cutting measures and enhanced revenue generation.
Deputy Chairman of the House of Representatives Committee on Finance, Hon. Saeed Musa Abdullahi, gave the commendation on Tuesday during the 2026 Revenue Monitoring Exercise with the Commission in Abuja. He praised the SEC’s efforts to strengthen its finances and urged it to sustain the momentum.
“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,” Abdullahi said.
He challenged the Commission to exceed its 2026 revenue target, saying, “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.”
Earlier, the Director-General of the SEC, 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 governments providing financial support where necessary.
According to Agama, the SEC currently receives no budgetary allocation from the Federal Government, relying instead on income generated from the capital market while still remitting 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 once the Commission’s revenues are paid into its account with the Central Bank of Nigeria (CBN), statutory deductions are made automatically 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,” he added.
Agama noted that as a regulator, the SEC is careful not to overburden market operators with additional charges to fund its operations. To ease financial pressure, he said the Commission secured approval from the Minister of Finance for a waiver allowing it to retain 20 per cent of its income.
“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.
The SEC boss also disclosed that the Commission had secured a grant from the African Development Bank to acquire a modern market surveillance system, which is expected to be deployed this year to strengthen oversight of Nigeria’s capital market and align it with international standards.