SEC to downsize workforce over revenue shortfall

Lamido Yuguda, director-general of the Securities and Exchange Commission (SEC), says efforts are on to downsize its workforce to cut cost.

Yuguda, who was represented by Ibrahim Boyi, SEC executive commissioner for corporate services, disclosed this on Tuesday when he appeared before the house of representatives committee on finance.

There has been concern over poor remittance of revenue by ministries, department and agencies (MDAs) into the federation account.

This has affected the monthly allocation to states by the federation accounts allocation committee (FAAC).

The panel was mandated by the house to investigate MDAs’ revenue remittances into the federation account.

Speaking on the decision, the SEC commissioner said the move will enable the commission become more sustainable and will improve its revenue generation.

“Unfortunately, almost 80 percent 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 percent of our staff are from senior managers,” he said.

“So, that’s the mandate I think we have taken as management and the board and I’m sure in the matter of a few months, we’ll be able to come with a solution but the idea really is to make the commission more sustainable.”

Speaking on the remittances made to the federation account, Boyi said the commission had its finances up to date for 2018, adding that unremitted funds for 2019 and 2020 will be made soon.

“We have reconciled fully up to 2018 and, you know, in 2020 there was a new directive by the federal government that whether you are a self-funding agency or not, 25 percent of revenue that hits your TSA will be deducted and that has been going on,” he said.

“We are also going to factor that into our subsequent reconciliation with the office of the accountant-general.

“Unfortunately, for SEC in 2019, 2020 and this year, we’re likely to end up with some deficits because the revenue short.”

In his remarks, Saidu Abdullahi, deputy chairman of the committee, asked SEC to reconcile its 2019 and 2020 accounts with the office of the accountant-general.