Reps Express Concerns Over N255.4m Severance Payments To Two Former SEC Commissioners
Demand Refund of N93m Paid To Sigma, Premium, Stanbic IBTC
The Public Accounts Committee of the House of Representatives has expressed strong disapproval over N255,426,494.80 severance payments made to two former executive commissioners by the Securities and Exchange Commission (SEC).
This issue was highlighted during today’s sitting, on January 28, 2025, when the committee reviewed the Auditor General’s 2020 report.
Several concerns were raised regarding SEC’s financial practices, including the alleged irregular payment of severance and allowances.
According to the report, SEC made irregular payments of severance and allowances to non-staff, totaling N255,426,494.80. Specific details include
“N128,869,606.22 paid to an individual on January 5, 2017, as severance allowance.
“N128,556,888.58 paid to another individual on the same date, also as severance allowance.”
The report further stated that the personal files of the officers and the payment vouchers for the beneficiaries were not provided for audit verification.
In response to these allegations, Securities and Exchange Commisision’s Director General, Dr. Emomotimi Agama, explained that the severance and allowances were paid to the former executive commissioners who served at the commission from 2013 to 2017.
“At the end of their four-year tenure, they were paid severance packages as approved for their positions,” he clarified.
However, committee Chairman, Rep. Bamidele Salam, expressed concern over the scale of the severance payments.
“If we are paying such an amount to executive commissioners who served for just four years, how do we justify compensation for individuals who have served this country for 35 years, including those who have served in war zones and on the frontlines?” he questioned.
The committee emphasized the urgent need for the government to efficiently manage its finances, especially given the current fiscal challenges.
The committee unanimously agreed to form a five-member subcommittee to investigate the process by which severance and allowances are paid within Ministries, Departments, and Agencies (MDAs) of the federal government.
The Auditor General also raised concerns regarding an illegal payment of commission on the gross income earned from pension fund investments, totaling N93,380,888.38.
SEC’s Director General explained that the commission operates a defined benefit pension scheme, managed by three Pension Fund Administrators (PFAs): Sigma, Premium pension, and Stanbic IBTC.
He noted that the commission opted to pay management fees to the PFAs to reduce the risk of a future deficit that would require offsetting within 90 days.
Despite this explanation, the committee expressed dissatisfaction and unanimously ordered that the PFAs—Sigma, Premium, and Stanbic IBTC to refund the amount received from the illegal payment to the federal government treasury.
