The Senate Committee on the South East Development Commission (SEDC) has questioned the commission’s claim that it spent N153 million to rent a one-room liaison office in Abuja, while demanding a detailed account of how N16.6 billion released to the agency was utilised.
At a tense oversight session at the National Assembly on Tuesday, lawmakers challenged the financial records presented by the commission, describing several expenditure items as unclear and unsupported by documentary evidence. The committee also raised concerns over an additional N2.5 billion listed as “implied expenditure” in the agency’s financial submissions.
Committee chairman, Senator Orji Kalu, said information available to lawmakers showed that the Central Bank of Nigeria confirmed that about N13 billion remained in the commission’s account from the N16.6 billion released in December 2025, leaving roughly N3.6 billion already spent and requiring proper explanation.
“This committee is disappointed with the financial report given, which is completely unacceptable,” Mr Kalu said during the session.
Several lawmakers, including Senators Enyinnaya Abaribe, Victor Umeh and Austin Akobundu, faulted the commission’s presentation and demanded comprehensive records to justify every expenditure made with public funds.
As the hearing progressed, members of the committee repeatedly challenged explanations offered by the commission’s management, insisting that the documents submitted failed to provide sufficient details on how the money was spent.
Responding to the criticisms, SEDC Managing Director Mark Okoye defended the agency’s spending decisions, arguing that the commission had adopted a cautious financial strategy aimed at ensuring fiscal discipline and sustainability.
“Our approach has been to ensure that available resources are directed towards priority projects. We want allocations to guide the procurement process so that contracts awarded can be backed by available funding,” Mr Okoye told lawmakers.
He said the commission was deliberately avoiding the practice of awarding contracts without adequate financial backing, warning that such actions could create significant liabilities. “What we want to avoid is a situation where contracts are awarded without the financial capacity to execute them,” he said.
Mr Okoye further argued that approved budgets do not automatically translate to cash availability. “For example, having a budget of N140 billion does not automatically mean that N140 billion in cash is available. It would be irresponsible to award contracts worth the entire budget if only N10 billion or N20 billion has actually been released,” he said.
Unpersuaded by the explanations, the committee directed the commission to submit detailed contract records, payment schedules and all supporting financial documents on or before June 23. “By the 23rd, we want to have the complete documentation. Once we receive and review the documents, we will determine the date for your next appearance before the committee,” Mr Kalu said before adjourning the hearing.
