SEDC Under Fire as Senate Demands Account of N16.6bn Budget

The Senate Committee on the South East Development Commission (SEDC) has subjected the management of the newly established regional intervention agency to intense scrutiny over its inability to adequately account for billions of naira spent from its 2025 budget allocation.

The development comes amid growing expectations that the commission, created to address decades of infrastructure deficits and developmental challenges in the South-East, should demonstrate transparency and accountability in its operations.

The Managing Director and Chief Executive Officer of the commission, Mr. Mark Okoye, appeared before the committee on Tuesday to defend the agency’s expenditure profile and provide updates on projects and activities undertaken since its inauguration.

However, the session quickly turned confrontational as lawmakers questioned the commission’s spending pattern and demanded explanations for what they described as inconsistencies in its financial records.

Chairman of the committee and former Abia State governor, Senator Orji Uzor Kalu, expressed dissatisfaction with the explanations provided by the commission’s management, particularly regarding the utilisation of funds released to the agency.

According to budgetary records, the SEDC received N16.6 billion for its operations in the 2025 fiscal year.

When asked how much remained in the commission’s account, Okoye told lawmakers that between N11.5 billion and N12 billion was still available, indicating that more than N4 billion had already been spent on operational and administrative activities.

The response immediately drew sharp reactions from members of the committee.

Senator Kalu insisted that the figures presented by the commission did not align with information available to lawmakers and data obtained from relevant government institutions.

“We will not tolerate anything. Whether you are appointed by heaven or earth, our duty as parliamentarians is to ensure that public funds are spent according to the laws of Nigeria,” Kalu declared during the hearing.

The senator further disclosed that the committee had already initiated additional oversight measures, including engaging the Auditor-General and obtaining financial information from the Central Bank of Nigeria.

“In this committee, we have access to records. We know where money is kept and where money is spent. I have spoken to the Central Bank and we have sent the Auditor-General to audit everything you have done because I am not impressed,” he said.

The hearing became even more contentious when lawmakers questioned the commission’s office rental arrangements in Abuja.

Kalu alleged that records available to the committee showed that the agency was paying approximately N153 million annually for a relatively small office space in the Federal Capital Territory despite maintaining its statutory headquarters in Enugu.

“You have one little office here in Abuja and you pay N153 million. This committee knows. You are dealing with people who know far more than you think,” the senator stated.

Unable to provide a detailed breakdown of the expenditure during the hearing, the managing director was directed to return before the committee next week with comprehensive documentation detailing how every kobo spent from the allocation was utilised.

Lawmakers warned that failure to provide satisfactory explanations could trigger further legislative actions and more extensive financial investigations.

“We are not satisfied with your job. Somebody who claims to be an expert should not be doing this. We are disappointed. Go back, tell us the whole truth and come back next Tuesday,” Kalu added.

The South East Development Commission is among several regional development agencies established by the Federal Government to drive infrastructure renewal, economic growth and social development across Nigeria's geopolitical zones.

President Bola Tinubu signed the South East Development Commission Establishment Bill into law in 2024 and the commission’s governing board was inaugurated earlier this year.

The agency was established to spearhead reconstruction efforts, promote industrialisation, support agriculture, address environmental challenges and facilitate investment across Abia, Anambra, Ebonyi, Enugu and Imo states.

Its creation was widely celebrated across the South-East, where many stakeholders viewed the commission as a long-awaited vehicle for addressing years of perceived neglect and underdevelopment.

However, analysts note that the controversy surrounding the commission’s expenditure comes at a sensitive period in its existence.

As a young institution still seeking to build public trust, questions over financial transparency could affect confidence among lawmakers, investors, development partners and residents of the region.

For now, attention remains focused on next week's hearing, where the commission is expected to provide detailed records that could determine whether the Senate's concerns are allayed or further investigations become inevitable.