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By Victor Osula, Abuja
The South East Development Commission (SEDC) came under intense Senate scrutiny on Tuesday after lawmakers questioned financial records showing the agency spent 153 million naira on rent for a one-room liaison office in Abuja and listed another 2.5 billion naira as “implicit expenditure” without adequate explanation.
The Senate Committee on the Southeast Development Commission, chaired by Senator Orji Uzor Kalu, expressed dissatisfaction with the commission’s financial disclosures and called for a full accounting of how the $16.6 billion released to the agency from the 2025 budget was spent.
The concerns were raised during an investigative hearing following the commission’s review of financial documents submitted by the commission.
Lawmakers said the documents failed to provide satisfactory explanations for several spending items and raised questions about transparency in the management of public funds.
Particularly concerning to committee members were entries indicating that $153 million had been spent on renting a one-room office in Abuja, while a separate expenditure of $2.5 billion had been classified as “implied expenditure” without supporting details.
Leading the criticism, Senator Kalu revealed that information obtained by the committee from the Central Bank of Nigeria (CBN) showed that only about $13 billion remained in the commission’s account of the $16.6 billion released in December 2025.
According to him, the figures suggest that around $3.6 billion had already been spent and must be fully accounted for by the commission’s management.
“This commission is disappointed by the financial report that was presented to us. It is absolutely unacceptable,” Kalu said.
Other members of the commission, including Senators Enyinnaya Abaribe, Victor Umeh and Austin Akobundu, also expressed concern over the commission’s financial statements, insisting that every expenditure must be properly documented and justified.
Responding to lawmakers’ concerns, the commission’s director general, Mark Okoye, defended the agency’s spending decisions, arguing that all expenditures were prudent and in accordance with established financial norms.
Okoye explained that the commission deliberately took a cautious approach in implementing the project, ensuring that contracts were only awarded when supported by actual cash releases rather than budgetary projections.
“Our approach has been to ensure that available resources are directed towards priority projects. We want appropriations to guide the procurement process so that awarded contracts can be supported by available funding,” he said.
He further argued that having a budgetary allocation does not necessarily mean that equivalent cash resources are available for immediate spending.
“Having a budget of $140 billion does not automatically mean that $140 billion in cash is available. It would be irresponsible to award contracts worth the entire budget if only $10 or $20 billion was actually released. This would create unfunded liabilities and a significant financial gap,” Okoye added.
The explanation, however, failed to convince commission members, who insisted that the financial documents presented contained gaps that required further clarification.
As a result, the Senate committee ordered SEDC management to submit detailed records of all financial transactions, including contract awards, procurement documents, payment schedules and other supporting documents, by June 23.
“By the 23rd, we want to have complete documentation. Once we receive and review the documents, we will determine the date for your next appearance before the committee,” Kalu said.
The commission later adjourned the hearing, warning that the commission would be held to account for any expenditure made with funds released by the federal government.
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