Reps applaud SEC’s fiscal reforms, revenue growth

The House of Representatives has lauded the Securities and Exchange Commission (SEC) for enhancing its fiscal sustainability by implementing cost-cutting measures and improving revenue generation. Deputy Chairman of the House Committee on Finance, Saeed Abdullahi, praised the SEC's financial trajectory during the 2026 Revenue Monitoring Exercise in Abuja, urging the commission to maintain its performance and exceed its revenue targets.

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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.

Director-General of the SEC, Dr. Emomotimi Agama, informed the committee that securities regulators are expected to operate independently with necessary government support, adhering to International Organisation of Securities Commissions (IOSCO) principles. Agama highlighted that the SEC receives no budgetary allocation from the Federal Government, relying entirely on income generated from the capital market while simultaneously remitting funds to the government. This financial model means the SEC funds its operations solely through market activities.

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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.

Agama explained that statutory deductions are automatically processed by the government once revenues are deposited into the SEC's account with the Central Bank of Nigeria, leaving the commission with no prior access to these funds. To alleviate operational pressures without imposing additional fees on market operators, the SEC secured approval from the Minister of Finance for a waiver. This allows the commission to retain 20% of its generated income.

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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.

Furthermore, the SEC has obtained a grant from the African Development Bank to procure a modern market surveillance system. This system is slated for deployment this year and is expected to strengthen oversight of Nigeria's capital market, aligning it with global standards. The House committee emphasized that the exercise is intended to foster better performance among agencies, particularly during a period of significant fiscal challenges for the country.

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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.