SOUTH EAST DEVELOPMENT COMMISSION RENTS ONE-ROOM OFFICE IN ABUJA FOR N153 MILLION

The Senate Committee on the South East Development Commission (SEDC) has asked the Managing Director of the commission, Mark Okoye, to provide a breakdown of how the N16.6 billion received from the 2025 budget was utilised.

The committee, chaired by Orji Kalu, in a meeting with the management and staff of the agency on Tuesday at the National Assembly, queried claims that it spent N153 million to rent a one-room liaison office in Abuja, as well as an additional N2.5 billion categorised as “implied expenditure”.

According to the lawmakers, they found that the spending details provided by the SEDC were unclear, and expenditure records unsubstantiated. They asked the management to properly account for how funds released from the federal budget were utilised, insisting that full justification must be provided for every naira spent so far.

Kalu, in particular, told the SEDC Managing Director, Mark Okoye, that findings obtained by the committee indicated that the Central Bank of Nigeria (CBN) had confirmed that there was about N13 billion remaining from the N16.6 billion released to the commission in December last year, meaning that approximately N3.6 billion has already been spent and must be properly accounted for.

“This committee is disappointed with the financial report given, which is completely unacceptable,” he said.

Other members of the committee, including Senators Enyinnaya Abaribe, Victor Umeh and Austin Akobundu, also expressed dissatisfaction with the presentation and demanded clearer financial records.

As tension rose during the session, lawmakers repeatedly challenged the commission’s explanations, describing them as insufficient and lacking in documentary backing.

However, Okoye defended the commission’s financial approach, insisting that all expenditures to date were made within a structured framework to ensure fiscal responsibility and long-term sustainability.

“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.

“What we want to avoid is a situation where contracts are awarded without the financial capacity to execute them,” he said.

Okoye further explained that infrastructure development projects require phased funding and careful financial planning, noting that budgetary provisions do not always translate into immediate cash availability.

“For example, having a budget of N140 billion does not automatically mean that N140 billion in cash is available,” he said.

“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,” he added.

Despite his defence, the committee remained unconvinced, insisting that the explanations did not adequately address the concerns raised in the financial submissions.

Consequently, the committee directed the commission to submit comprehensive records, including detailed contract breakdowns, payment schedules, and all supporting financial documents, no later than the 23rd of this month.

“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,” Senator Kalu said.

The chairman thereafter adjourned the session, reiterating the committee’s expectation that all requested information must be submitted within the stipulated timeframe for further legislative scrutiny.