Revenue shortfall: SEC may sack workers to cut cost

…As Reps demand details of N2.725bn advanced consideration from NNPC

By Gift Chapi Odekina 

The Securities and Exchange Commission (SEC) is considering to sack its workforce in order to cut cost in the face of financial shortfall .
Director General of SEC, Lamido Yuguda made the revelation when he appeared before the House of Representatives Committee on Finance, investigating Ministries, Departments and Agencies (MDAs) revenue remittances into the Federation Account.
Yuguda who was represented by SEC’sExecutive Commissioner for Corporate Services, Ibrahim Boyi said the Commission was determined to boost its revenue and reduce the cost of operation.

He said: “Unfortunately, almost 80% 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% of our staff are from senior managers. 

“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 andmake sure that our revenue is going forward. 

On remittances to the Federation Account, Boyi said: “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 self funding agency or not, 25% of Revenue that hits your TSA will be deducted and that has been going on.

“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”. 

Deputy Chairman of the Committee, Saidu Abdullahi who represented the Chairman, James Faleke directed the Commission to reconcile its 2019 and 2020 Account with Office of the Accountant-General and to explore ways of generating more revenue.

Also at the hearing, the House Committee demanded that the Nigeria National Petroleum Corporation (NNPC) submit evidences of revenue remittances into Consolidation Federation Account from 2014 to 2019.

The lawmakers particularly, asked NNPC to furnish it with the details of the revenue it calls ‘Advance Consideration’ which amounted to N2.725 billion in the 2018 and 2019 Accounts of the Corporation.

According to the documents submitted to the Committee, NNPC received advanced consideration of N820.511 million from customers in 2018 and N1.904 billion in 2019.

The Committee also demanded for the Corporation’s group account details and the appearance of all the Heeads of all NNPC subsidiaries and the Group Managing Director (GMD), Mele Kyari at a date to be fixed Committee.

Deputy Chairman of the Committee, Abdullahi expressed worry over the manner NNPC subsidiaries were operating in the country in terms of revenue remittances.

“If you said outside of the tax they pay, they do not pay any dividend to NNPC, I think there is flaw in that, I cannot have a company that will only be responsible for payment of tax.

“I have an objective for establishing the company; when next you are to appear before us, the appearance will have to be with the heads of the subsidiaries including the GMD of NNPC.

“As a country, it is time we must sit down as citizens and talk to ourselves, we have a responsibility of making this country work and for us to make it work is by doing what is right.

“We have seen loopholes, we have seen leakages; we cannot over emphasize that the economy this country has the capacity to fund a N15 trillion budget; what we need to do is to ensure every agencies is on its food and ensure we do what is right,’’ he said

Earlier, the Group General Manager, Federation Account of NNPC, Bello Abdullahi said the Corporation has subsidiaries registered under Company And Allied Matters Act (CAMA) they pay taxes and other statutory obligations to the relevant authorities, hence they do not remit revenue to the Federation Account.

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