The National Assembly on Tuesday commended the Securities and Exchange Commission (SEC) for strengthening its revenue base and fiscal sustainability, while urging the regulator to surpass its 2026 revenue target by at least 20 per cent.
The commendation came during the 2026 Revenue Monitoring Exercise with the Commission in Abuja, where the Deputy Chairman of the House of Representatives Committee on Finance, Hon. Saeed Musa Abdullahi, praised the SEC’s progress in improving its fiscal sustainability despite operating without budgetary support from the Federal Government.
“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.
The lawmaker also challenged the Commission to raise more revenue than it projected for the year.
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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,” he said.
Speaking earlier, the Director-General of the SEC, Dr Emomotimi Agama, said the Commission operates without any budgetary allocation from the Federal Government, relying entirely on income generated from the capital market while still remitting funds to the government.
According to Agama, the arrangement is contrary to the principles of the International Organisation of Securities Commissions (IOSCO), which provide that securities regulators should operate independently, with governments offering financial support where necessary.
“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.
Agama explained that revenue paid into the Commission’s account with the Central Bank of Nigeria is subject to statutory deductions 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.
He said the Commission has avoided increasing charges on market operators to finance its activities. Instead, it secured approval from the Minister of Finance to retain 20 per cent of its income through a waiver on statutory deductions.
“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.
Agama also disclosed that the SEC had secured a grant from the African Development Bank to acquire a modern market surveillance system.
The system is expected to be deployed this year to strengthen oversight of Nigeria’s capital market and bring its regulatory framework in line with international standards.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X