Ghana’s Securities and Exchange Commission (SEC) recorded a GH¢3.27 million deficit in 2025, a sharp reversal from the GH¢21.41 million surplus posted in 2024, as government support fell significantly while personnel and administrative costs continued to rise.
The regulator’s latest accounts show that total income declined from GH¢75.86 million in 2024 to GH¢61.24 million in 2025, while operating expenditure increased from GH¢54.45 million to GH¢64.51 million.
SEC said the deficit was financed from its reserves.
However, the figures need to be viewed in the context of the unusually high government support received in 2024. Government contributions fell from GH¢20 million in 2024 to just GH¢1.10 million in 2025.
Without the exceptional 2024 government transfer, SEC’s underlying surplus from operations that year would have been about GH¢1.41 million.
This means the 2025 deficit was not necessarily caused by a collapse in the Commission’s market-related revenue. In fact, operating revenue increased by 2.71% to GH¢47.72 million.
Investment income also rose to GH¢8.81 million, while other income more than doubled to GH¢3.62 million.
One of the strongest areas of growth was transaction levy revenue, which jumped 77.49% from GH¢15.58 million to GH¢27.66 million.
The increase reflected stronger activity in Ghana’s secondary securities market and made transaction levies the Commission’s largest source of operating revenue.
However, the gains were significantly offset by a sharp decline in prospectus approval fees.
Revenue from prospectus approvals fell from GH¢16.15 million in 2024 to GH¢3.41 million in 2025, with the SEC attributing the decline to the absence of major primary-market issuances.
Other income streams recorded more modest increases. Licence fees rose to GH¢2.44 million from GH¢1.85 million, market-operator levies increased to GH¢2.85 million, while depository fees climbed to GH¢11.38 million from GH¢10.31 million.
The figures point to an important difference in Ghana’s capital-market performance: trading activity improved, but this did not translate into a similarly strong pipeline of companies and institutions raising new capital.
SEC also fell short of its revenue target for the year.
Actual revenue was 17.11% below the GH¢73.88 million budget.
A major contributor was the failure to collect the GH¢25 million the Commission had budgeted from fees on pension assets. SEC said the revenue was not realised because implementation arrangements were still being discussed with stakeholders in the pension industry.
The shortfall highlights the challenge of relying heavily on market activity for regulatory funding, particularly when some expected revenue streams remain uncertain.
While revenue came under pressure, expenditure moved in the opposite direction.
Personnel emoluments and other staff-related costs increased from GH¢38.70 million to GH¢44.30 million, making employee-related expenses the Commission’s largest expenditure category.
Wages and salaries amounted to GH¢15.19 million, while staff allowances reached GH¢16.37 million. The remaining costs included pension contributions, medical expenses, incentives, gratuity and other employee obligations.
Administrative and programme-delivery expenditure also increased from GH¢14.63 million to GH¢19.08 million.
Foreign travel, training and conferences accounted for GH¢7.14 million, up from GH¢4 million a year earlier. Advertisement and public education cost GH¢2.08 million, while conferences, training and marketing accounted for GH¢1.52 million.
Depreciation and amortisation stood at GH¢1.70 million.
For a regulator responsible for supervising an increasingly sophisticated financial market, many of these expenses are necessary. SEC needs skilled professionals, technology, investor education, enforcement capacity and international regulatory engagement.
The challenge, however, is ensuring that the revenue model can sustainably finance these responsibilities.
Despite the deficit, SEC remains in a relatively strong financial position.
Total assets stood at GH¢100.73 million at the end of 2025, compared with GH¢103.99 million a year earlier. Liabilities remained relatively low at GH¢3.84 million, while the accumulated fund stood at GH¢96.89 million.
Cash and cash equivalents declined from GH¢7.50 million to GH¢5 million, while short-term investments fell from GH¢41.50 million to GH¢36 million.
At the same time, accounts receivable increased from GH¢10.24 million to GH¢14.68 million. This included GH¢6.58 million in transaction levies owed by market operators and GH¢2.57 million in outstanding depository fees.
The Commission also recorded a GH¢6.04 million net operating cash outflow in 2025, compared with a GH¢18.45 million inflow in 2024.
A GH¢3.54 million net inflow from investing activities provided some relief, leaving SEC with GH¢5 million in cash at year-end.
The accounts received a clean opinion from the external auditors, CFA & Associates.
The auditors concluded that the financial statements presented a true and fair view of SEC’s financial position and performance under the applicable accounting and statutory framework. No key audit matters requiring separate disclosure were identified.
The main concern, therefore, is not the Commission’s immediate solvency but the sustainability of its funding model.
SEC benefits when trading activity is strong because transaction-related income increases. But the model also exposes the regulator to fluctuations in market activity and the pipeline of new securities issuances.
With Ghana seeking to deepen its capital market and transition from a frontier market towards emerging-market status, the financial strength of the regulator will be increasingly important.
The 2025 accounts suggest that SEC still has substantial reserves to absorb short-term pressure. But the GH¢3.27 million deficit also raises a broader question: can the Commission’s existing revenue structure keep pace with the rising cost of regulating, developing and protecting Ghana’s capital market?
The answer could determine how effectively SEC is able to invest in technology, supervision, enforcement and investor protection in the years ahead.
