ABUJA, NOVEMBER 10, 2016 – Securities and Exchange Commission (SEC) has suffered a N2.1billion revenue deficit this year, Mr. Munir Gwarzo, its director-general, told the House of Representatives in Abuja yesterday.
Gwarzo had appeared before the House Committee on Capital Market and other Institutions to defend the 2016 budget of the commission.
The committee is chaired by Mr. Tajudeen Yusuf in his presentation, he said the commission projected N5.2bn, but explained that it dropped to N2.9bn, owing to turbulence in the Capital Market.
He spoke more, “We are going through very turbulent period and the state of capital market affects our projection of N5.2bn as revenue for 2016.
“But, we got N2.9bn, which shows that we are short of what we budgeted.”
He also informed lawmakers that the operation of the Treasury Single Account and a drop in penalties on infractions affected the revenue projection.
Citing how the revenue drop was affecting the commission, Gwarzo said it had yet to pay a courier firm N72million for a contract on the supply of some items.
But, members queried SEC’s decision to spend 80 per cent of the revenue it generated when it was unable to meet the revenue projection.
For example, Mr. Danburam Nuhu, a member from Kano State, observed that while SEC was able to generate N2.9bn instead of N5.2bn, it had already spent 80 per cent of the N2.9bn.
He noted, “Your revenue projection of N5.2bn was not achieved but you have achieved about 60 per cent of expenditure.
“My worry is that you are not bullish enough on the revenue, but you are on the side of expenditure by achieving 80 per cent.”