From Victor Osula, Abuja
The South East Development Commission (SEDC) came under intense Senate scrutiny on Tuesday after lawmakers questioned financial records showing that the agency spent N153 million on the rent of a one-room liaison office in Abuja and listed another N2.5 billion as “implied expenditure” without adequate explanation.
The Senate Committee on the South East Development Commission, chaired by Senator Orji Uzor Kalu, expressed dissatisfaction with the commission’s financial disclosures and demanded a comprehensive account of how the N16.6 billion released to the agency from the 2025 budget has been spent.
The concerns were raised during an investigative hearing following the committee’s review of financial documents submitted by the commission.
Lawmakers said the records failed to provide satisfactory explanations for several expenditure items and raised questions about transparency in the management of public funds.
Particularly troubling to members of the committee were entries indicating that N153 million had been spent on renting a one-room office in Abuja, while a separate N2.5 billion expenditure was categorised as “implied expenditure” without supporting details.
Leading the criticism, Senator Kalu disclosed that information obtained by the committee from the Central Bank of Nigeria (CBN) showed that only about N13 billion remained in the commission’s account out of the N16.6 billion released to it in December 2025.
According to him, the figures suggested that approximately N3.6 billion had already been spent and must be fully accounted for by the commission’s management.
“This committee is disappointed with the financial report presented to us. It is completely unacceptable,” Kalu declared.
Other members of the committee, including Senators Enyinnaya Abaribe, Victor Umeh, and Austin Akobundu, also voiced concerns over the commission’s financial disclosures, insisting that every expenditure must be properly documented and justified.
Responding to the lawmakers’ concerns, the Managing Director of the commission, Mark Okoye, defended the agency’s spending decisions, maintaining that all expenditures were prudent and complied with established financial regulations.
Okoye explained that the commission had deliberately adopted a cautious approach to project implementation by ensuring that contracts were awarded only when backed by actual cash releases rather than budgetary projections.
“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,” he said.
He further argued that having a budget allocation did not necessarily mean equivalent cash resources were available for immediate spending.
“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. Doing so would create unfunded liabilities and a significant financial deficit,” Okoye added.
The explanation, however, failed to convince members of the committee, who insisted that the submitted financial records contained gaps requiring further clarification.
Consequently, the Senate panel directed the SEDC management to submit detailed records of all financial transactions, including contract awards, procurement documents, payment schedules, and other supporting records, 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,” Kalu said.
The committee subsequently adjourned the hearing, warning that the commission would be required to account for every expenditure made from funds released to it by the Federal Government.
