*Gets 20% revenue waiver from Ministry of Finance
By Abiodun Folarin
WorldStage— The Securities and Exchange Commission (SEC) has secured a grant from the African Development Bank (AfDB) to acquire a modern market surveillance system aimed at strengthening oversight of Nigeria’s capital market and aligning regulatory operations with international standards.
Director-General of the SEC, Dr. Emomotimi Agama, disclosed this on Tuesday during the 2026 Revenue Monitoring Exercise before the House of Representatives Committee on Finance.
Agama said the new surveillance platform would enhance the Commission’s capacity to monitor trading activities, improve market integrity and reinforce investor confidence through more effective regulation.
He also revealed that the Commission had secured a 20 per cent waiver from the Federal Ministry of Finance on statutory deductions from revenues generated by the capital market, a move aimed at ensuring that its regulatory operations are not adversely affected.
According to him, the waiver has become necessary because the SEC operates without budgetary allocations from the Federal Government, relying solely on internally generated revenue from the capital market while still remitting funds to the government.
Agama explained that under the principles of the International Organization of Securities Commissions (IOSCO), securities regulators are expected to operate independently, with governments providing financial support where necessary.
“The SEC does not receive funding from the Federal Government. All the resources used to run the Commission are generated from the capital market, yet we continue to remit revenue to the government,” he said.
He further explained that revenues paid into the Commission’s account with the Central Bank of Nigeria (CBN) are subjected to automatic statutory deductions before the SEC can access the funds.
“Once the funds hit our account with the CBN, deductions are made directly by the government. We do not have access to the funds before those deductions are effected,” Agama stated.
He stressed that the Commission had deliberately avoided imposing additional financial burdens on operators in the capital market to fund its activities.
“As regulators, we are not expected to seek funding from the market. With the approval of the Honourable Minister of Finance, we secured a 20 per cent waiver on these deductions to ensure that our operations are not hindered,” he added.
Speaking during the exercise, Deputy Chairman of the House of Representatives Committee on Finance, Hon. Saeed Musa Abdullahi, commended the SEC for improving its financial management and strengthening its regulatory capacity.
He said the Committee had closely monitored the Commission’s progress over the years and encouraged it to sustain the momentum.
“You have done significantly well. We have followed the progress of the SEC over the years and urge you to keep the flag flying. This exercise is not intended to witch-hunt any agency but to promote improved performance, especially at a time when the country faces serious fiscal challenges,” Abdullahi said.
The lawmaker also challenged the Commission to surpass its 2026 revenue target by at least 20 per cent, expressing confidence in its capacity to generate higher revenue for the government while maintaining effective regulation of the nation’s capital market.
