SEDC Defends Spending, Vows Full Disclosure After Senate Scrutiny

The South East Development Commission (SEDC) has pushed back against concerns raised during a recent Senate oversight session, insisting that its financial commitments have been lawful, transparent and fully documented.

In a statement issued by the Office of the Managing Director and Chief Executive Officer, Mr Mark Okoye, the Commission explained that expenditure questioned by lawmakers largely relates to institutional setup costs, headquarters rehabilitation works and project development activities undertaken despite the non-release of capital funds.

The clarification comes amid growing public interest in the activities of the Commission, which was created by the Federal Government to drive economic development, infrastructure renewal, investment mobilisation and regional integration across the South-East geopolitical zone.

Senate Oversight Session

According to the Commission, its management team participated in an extensive interactive session with members of the Senate Committee as part of the National Assembly’s constitutional oversight responsibilities.

During the engagement, SEDC officials provided briefings on the agency’s financial position, procurement processes, institutional development plans, strategic partnerships and ongoing programmes across the region.

The Commission disclosed that lawmakers requested additional documentation relating to certain aspects of its operations and expenditure.

Rather than viewing the request as contentious, SEDC said it welcomed the opportunity to provide further details and sought a short period to compile the extensive records required.

The agency confirmed that proceedings were subsequently adjourned, with an undertaking to submit all requested documents on or before June 23, 2026.

Abuja Office Expenditure Explained

One of the issues that attracted public attention involved expenditure linked to the Commission’s Abuja liaison office.

SEDC explained that the expenditure covered the establishment and operation of a functional office facility located within the Congress Building in Maitama, Abuja.

According to the Commission, the facility serves as a strategic operational hub for engagement with the National Assembly, federal ministries, development finance institutions, donor organisations and key stakeholders involved in national policy and development planning.

The agency stressed that figures cited during public discussions represented cumulative expenditure incurred since the office became operational in February 2025.

The costs, it said, covered rent, utilities, operational expenses and basic fit-out works necessary to make the facility functional.

Transition to Permanent Headquarters

The Commission further revealed that it is already working towards relocating fully to its designated headquarters in Enugu.

Rather than spending public funds on acquiring a new property, SEDC said it secured the transfer of an existing building from the Enugu State Government. A formal agreement has reportedly been signed to accelerate the rehabilitation of the facility and facilitate the Commission’s permanent relocation.

Officials argued that this approach represents a more prudent use of public resources than constructing or purchasing a completely new headquarters.

Clarification on ‘Implied Expenditure’

Addressing concerns regarding what some observers described as “implied expenditure,” the Commission explained that the figures relate largely to contractual commitments associated with the rehabilitation of the Enugu headquarters.

The agency emphasised that the project followed due process under the Public Procurement Act 2007 and received the necessary approvals from relevant regulatory authorities, including the Bureau of Public Procurement.

SEDC noted that these commitments remain budgeted obligations and have not yet been disbursed.

“To be precise, this money has not left the Commission’s accounts,” the statement stressed.

Capital Funds Yet to Be Released

Perhaps most significantly, the Commission disclosed that it has yet to receive any capital allocation despite having commenced operations more than a year ago.

Management said that while capital releases remain outstanding, the Commission has continued to advance critical project planning and development initiatives using available resources.

According to the statement, efforts have focused on laying the institutional and technical foundations required for rapid implementation of projects once capital funding becomes available.

Investments in Institutional Capacity

SEDC explained that a substantial portion of its expenditure has been directed toward establishing the basic structures required for effective operations.

These include payment of salaries and arrears for staff members who continued working during the prolonged period before government funding was released, training programmes for personnel, development of operational offices in Abuja and Enugu, and procurement of essential information and communication technology infrastructure.

The Commission maintained that these investments were necessary to position the agency for effective service delivery.

Project Development and Regional Partnerships

Beyond administrative costs, SEDC highlighted several initiatives already undertaken in support of regional economic transformation.

The Commission disclosed that consultants had been engaged to conduct feasibility studies and due diligence on major infrastructure projects, including a proposed gas development initiative expected to boost industrialisation and energy security in the South-East.

It also cited participation in the Intra-African Trade Fair in Algeria, which it said had opened discussions with Afreximbank on the establishment of a Project Preparation Fund designed to revive dormant industries across the region.

The agency further referenced the South East Vision 2050 Stakeholder Forum and the launch of a Venture Capital Programme that has already provided funding support to 25 startups operating across the five South-East states.

Commitment to Accountability

SEDC concluded by assuring stakeholders that comprehensive records, including procurement documents, payment schedules, contract details and financial statements, would be submitted to the Senate Committee before the agreed deadline.

The Commission said it remains confident that a full review of the facts will demonstrate prudent stewardship of public resources and reinforce public confidence in its mandate.

As one of Nigeria’s newest regional development agencies, the SEDC faces enormous expectations from millions of residents seeking accelerated infrastructure development, economic opportunities and improved regional competitiveness.

Its ability to maintain transparency while delivering visible results is likely to remain a key measure of its success in the years ahead.