National Assembly backs SEC's fiscal sustainability drive

Nigeria's National Assembly has backed the Securities and Exchange Commission's (SEC) drive for fiscal sustainability. Lawmakers specifically endorsed the commission's cost-cutting measures and its focus on improving revenue generation.

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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.

During a 2026 Revenue Monitoring Exercise in Abuja, Deputy Chairman of the House of Representatives Committee on Finance, Hon. Saeed Musa Abdullahi, commended the SEC's financial management. He urged the commission to maintain its progress, stating the exercise aimed to ensure better performance amid the country's fiscal challenges.

Abdullahi challenged the SEC to surpass its 2026 revenue projection by at least 20 percent. "You have told us your revenue projection for 2026, but we believe you can do more," he said.

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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.

SEC Director-General Dr. Emomotimi Agama explained that securities regulators, following International Organization of Securities Commissions (IOSCO) principles, should operate independently with government support. However, he noted the SEC receives no budgetary allocation from the Federal Government. Instead, it relies entirely on internally generated revenue from the capital market and remits funds to the government.

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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.

"The SEC does not receive any funding from the government; rather, it pays money to the government," Agama stated. He detailed that statutory deductions are automatically made from the SEC's revenue account with the Central Bank of Nigeria before the commission can access the funds. Agama also revealed that the SEC secured a 20 percent waiver on statutory deductions from the Minister of Finance to ensure its operations are not hindered.

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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.