The South East Development Commission (SEDC) has been directed by the Senate to submit comprehensive documentation on its financial activities, following an oversight session in Abuja in which lawmakers reviewed its expenditure profile, procurement processes, and programme implementation.
The directive followed an interactive hearing held by the Senate Committee on the South East Development Commission, where lawmakers examined the Commission’s financial report and requested additional supporting records, including contract documents, payment schedules, and expenditure breakdowns. The Committee subsequently adjourned proceedings and set 23 June 2026 as the deadline for submission of the requested documents.
The Senate Committee, chaired by Senator Orji Uzor Kalu, said the Commission must provide a clearer and more detailed account of how it has utilised funds allocated to it. According to the Committee, the SEDC received ₦16.6 billion from its 2025 budget allocation in December of the previous year, with a substantial balance reportedly still in its account.
“The committee is not satisfied with the level of detail provided in the report before us. We expect a comprehensive account of all expenditures made from the funds released to the commission,” Senator Kalu said during the session.
Other members of the Committee, including Senators Enyinnaya Abaribe, Victor Umeh, and Austin Akobundu, also requested further clarification on specific expenditure categories and called for full disclosure of relevant financial records.
SEDC outlines expenditure structure and operational constraints
In its response, the Managing Director of the Commission, Mr. Mark Okoye, said expenditures undertaken by the SEDC were guided by available resources and aligned with its statutory mandate.
He explained that the Commission had adopted a cautious approach to project execution, ensuring that contracts were awarded only where there were confirmed cash releases, rather than relying solely on budgetary provisions.
According to him, this approach was intended to prevent the accumulation of unfunded obligations that could disrupt project delivery.
Okoye also stated that budgetary allocations do not always translate into immediate cash availability, adding that expenditure decisions were tied to actual fund releases.
Financial clarification on Abuja office and headquarters project
The Commission provided details on expenditure relating to its Abuja Liaison Office, located at the Congress Building in Maitama. It stated that the cost covers the establishment and ongoing operation of the facility since its inauguration on 11 February 2025, including rent, utilities, operational costs, and basic fit-out works.
The office serves as the Commission’s operational base for engagement with federal institutions, including the National Assembly, ministries, agencies, development finance institutions, and strategic partners.
On its headquarters, the Commission said it is transitioning to Enugu and has secured an existing building transferred by the Enugu State Government. It added that the facility requires rehabilitation before full occupation.
The Commission explained that a rehabilitation contract for the building was awarded under the Public Procurement Act 2007, with approval from the Bureau of Public Procurement and concurrence of the supervising ministry.
It further clarified that references to “implied expenditure” relate to this contract, which represents a budgeted obligation that has been committed but not yet disbursed. It stated that no funds have been withdrawn from its accounts under this arrangement.
Capital budget and institutional spending
SEDC stated that it has not yet received any funds from its capital budget. It also noted that its first disbursement of funds came after more than ten months of operation.
Despite this delay, the Commission said it deployed available resources to establish operational structures and maintain basic functionality. These included:
- Payment of staff salaries and arrears for personnel engaged since February 2025
- Capacity training for seconded staff
- Establishment of offices in Abuja and Enugu
- Procurement of ICT infrastructure for operational readiness
The Commission also said it advanced preparatory work on regional projects expected to fall under its capital expenditure framework once funding becomes available.
Programme and development activities
According to the Commission, its expenditure on programmes and project development has included:
- Feasibility studies and due diligence on priority regional projects
- Exploration of a potential gas infrastructure partnership with industrial implications for the South East
- Participation in the Intra-African Trade Fair in Algeria
Development of a partnership with Afreximbank to establish a Project Preparation Fund for reviving moribund industries.
The South East Vision 2050 Stakeholder Forum
Launch of the South East Venture Capital Programme, which has provided funding support to 25 startups.
Senate issues deadline for documentation
Following deliberations, the Senate Committee directed the Commission to submit all requested documentation, including procurement records, contracts, and financial statements, on or before 23 June 2026.
The Committee stated that it would review the documents before scheduling the Commission’s next appearance.
“We want to have the complete documentation. Once we receive and review the documents, we will determine the date for your next appearance,” Senator Kalu said.
The Committee reiterated its commitment to ensuring transparency and accountability in the utilisation of public funds allocated for regional development.
In a related development, the Senate Committee on Public Accounts issued a one-week ultimatum to three federal agencies to respond to outstanding audit queries. The agencies are:
- Bank of Agriculture
- Nigerian Security Printing and Minting Company
- Rural Electrification Agency
The Committee, chaired by Senator Ibrahim Dankwambo, expressed concern over their absence at the hearing and insisted on prompt compliance with legislative oversight processes.
It also warned that agencies that fail to respond to final notices may face sanctions in accordance with the law.
Conclusion
The Senate has intensified its oversight of federal development and infrastructure agencies, with the SEDC required to provide detailed financial and procurement records covering its 2025 budget allocation.
The Commission, meanwhile, maintains that its expenditures have been guided by available funding, procurement regulations, and preparatory development needs, while reaffirming its commitment to full disclosure and cooperation with the National Assembly.
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