The Senate Committee overseeing the South East Development Commission (SEDC) has demanded a detailed account of how the commission utilised the N16.6 billion released to it from the 2025 federal budget allocation.
During a tense oversight meeting held on Tuesday at the National Assembly, lawmakers questioned several expenditure items presented by the commission’s management, including a reported N153 million spent on renting a one-room liaison office in Abuja and another N2.5 billion listed as “implied expenditure.”
The committee, chaired by Senator Orji Kalu, expressed dissatisfaction with the financial report submitted by the commission, describing it as vague, poorly documented, and lacking sufficient evidence to justify the spending.
According to the lawmakers, the records presented failed to clearly explain how public funds had been used since the release of the allocation in December last year.
Senator Kalu stated that information obtained from the Central Bank of Nigeria (CBN) indicated that approximately N13 billion remained in the commission’s account from the original N16.6 billion allocation. This suggests that about N3.6 billion has already been spent.
“This committee is disappointed with the financial report given, which is completely unacceptable,” Kalu said during the session.
Several members of the committee, including Senators Enyinnaya Abaribe, Victor Umeh, and Austin Akobundu, also criticised the presentation and called for greater transparency and accountability.
As discussions intensified, lawmakers repeatedly challenged the commission’s explanations, insisting that the figures provided lacked documentary support and proper breakdowns.
In response, the Managing Director of the SEDC, Mark Okoye, defended the commission’s spending strategy. He maintained that all expenditures were carried out within a structured financial framework designed to ensure fiscal discipline and sustainable project execution.
Okoye explained that the commission was deliberately cautious about committing funds to projects without confirmed financial backing.
“Our approach has been to ensure that available resources are directed towards priority projects,” he said. “We want allocations to guide the procurement process so that contracts awarded can be backed by available funding.”
He further argued that budgetary allocations do not automatically translate into immediate cash availability, especially for large-scale infrastructure projects that require phased funding.
“For example, having a budget of N140 billion does not automatically mean that N140 billion in cash is available,” he explained.
“It would be irresponsible to award contracts worth the entire budget if only N10 billion or N20 billion has actually been released. Doing so would create unfunded liabilities and a significant financial deficit.”
Despite these explanations, the committee remained unconvinced and insisted that the commission must provide complete financial records to support every expenditure made so far.
The lawmakers subsequently directed the SEDC to submit detailed documentation, including contract awards, payment schedules, procurement records, and supporting financial evidence, on or before the 23rd of this month.
“By the 23rd, we want to have the complete documentation,” Senator Kalu said. “Once we receive and review the documents, we will determine the date for your next appearance before the committee.”
The meeting was later adjourned pending the submission of the requested records.
The South East Development Commission was established by the Federal Government to coordinate reconstruction, rehabilitation, and economic development projects across Nigeria’s South-East region.
The commission was created in response to long-standing demands for greater federal intervention in addressing infrastructure decay, economic challenges, and the lingering effects of the Nigerian Civil War in the region.
The SEDC is modeled after similar regional intervention agencies such as the Niger Delta Development Commission (NDDC) and the North East Development Commission (NEDC).
Since its establishment, expectations have been high regarding the commission’s ability to deliver roads, healthcare facilities, educational projects, industrial development, and youth empowerment programmes across the five South-East states.
However, the commission has also faced scrutiny over transparency, financial management, and operational structure, particularly because it is still in its early implementation phase and relies heavily on federal allocations.
The latest Senate probe reflects growing concerns within the National Assembly about accountability in government intervention agencies, especially amid Nigeria’s broader economic pressures and increased public demand for prudent management of public fund
