Senate, SEDC clash over N16.6bn allocation as commission spends N153m for one-room office, N2.5 bn on implied expenditure
The Senate Committee on the South East Development Commission (SEDC) and the agency’s management clashed on Tuesday over the utilisation of N16.6 billion budgetary allocation.
The disagreement emerged during an investigative hearing convened by the committee chaired by Senator representing Abia North, Orji Kalu.
Lawmakers questioned several expenditure items contained in the commission’s financial report, including N153 million spent on an Abuja liaison office and N2.5 billion classified as “implied expenditure”.
The committee’s concerns followed a review of financial records submitted by the Managing Director of the SEDC, Mark Okoye and other senior officials of the commission.
Kalu said information available to the committee indicated that only N13 billion remained from the N16.6 billion released to the commission in December 2025.
According to him, the development suggested that about N3.6 billion had been spent and must be fully accounted for.
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“This committee is disappointed with the financial report given, which is completely unacceptable,” Kalu said.
“You have one little office here in Abuja. And you pay N153 million… one room! This committee knows.”
Senator representing Abia South; Enyinnaya Abaribe, Senator representing Anambra Central; Victor Umeh, and Senator representing Abia Central; Austin Akobundu, also faulted aspects of the report and demanded further explanations.
SEDC DEFENDS EXPENDITURE
Responding, Okoye said all expenditures made by the commission were lawful and directed towards priority projects and institutional development.
“Our approach has been to ensure that available resources are directed towards priority projects,” he said.
“We want allocations to guide the procurement process so that contracts awarded can be backed by available funding.
“What we want to avoid is a situation where contracts are awarded without the financial capacity to execute them.
“For example, 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.”
The committee, however, rejected the explanation and directed the commission to provide comprehensive documentation on its expenditures.
“By the 23rd, we want to have the complete documentation,” Kalu said.
“Once we receive and review the documents, we will determine the date for your next appearance before the committee.”
SEDC CLARIFIES N153M OFFICE RENT, N2.5BN ‘IMPLIED EXPENDITURE’
In a statement issued after the hearing, the commission said the N153 million expenditure related to the establishment and operation of its Abuja liaison office located at the Congress Building, 70 Mississippi Street, Maitama.
The SEDC said it occupies the basement, ground floor, and boardroom of the building under a signed lease agreement.
According to the commission, the amount covers rent, operational costs, utilities, and fit-out works from February 2025 to date.
The commission also clarified that the N2.5 billion categorised as “implied expenditure” relates to a contract awarded for the rehabilitation of its headquarters in Enugu.
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The agency said the contract was approved in line with the Public Procurement Act and that the funds had not been disbursed.
“To be precise: this money has not left the Commission’s accounts,” the statement said.
The commission added that expenditures incurred to date were for project development, institutional establishment, stakeholder engagement, and regional development initiatives.
The SEDC said it would submit all procurement records, contract details, payment schedules, and supporting financial documents to the senate committee on or before June 23.
The commission reiterated its commitment to transparency, accountability, and cooperation with legislative oversight institutions.
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