Senate Questions SEDC Boss Over Spending Of N16.6bn, Issues One-week Ultimatum

The Senate Committee on the South East Development Commission (SEDC) has given the commission’s management a one-week deadline to provide a comprehensive account of how funds released to it under the 2025 budget were spent, following concerns over what lawmakers described as inconsistencies and insufficient documentation in its financial records.

The directive was issued during an oversight meeting between the committee and officials of the commission at the National Assembly on Tuesday, where senators scrutinised the agency’s financial report and challenged several expenditure items presented by its management.

Led by Senator Orji Uzor Kalu, the committee demanded a detailed breakdown of the N16.6 billion released to the commission in December 2025, questioning the justification for several expenses, including a reported N153 million paid for the rental of a one-room liaison office in Abuja and an additional N2.5 billion listed under what lawmakers described as “implied expenditure.”

Committee members argued that the financial submissions presented by the commission lacked clarity and adequate supporting documentation, making it difficult to determine how public funds had been utilised.

According to Kalu, information available to the committee indicated that the Central Bank of Nigeria (CBN) had confirmed that roughly N13 billion remained in the commission’s accounts from the N16.6 billion allocation, suggesting that about N3.6 billion had already been spent and required proper explanation.

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

Several lawmakers echoed the chairman’s concerns. Senators Enyinnaya Abaribe, Victor Umeh and Austin Akobundu reportedly faulted the commission’s presentation, insisting that clearer records and verifiable documentation were needed to justify expenditures already incurred.

The hearing became increasingly tense as committee members repeatedly pressed the commission’s leadership for explanations, maintaining that many of the figures presented lacked sufficient documentary evidence.

Responding to the concerns, SEDC Managing Director Mark Okoye defended the commission’s financial management strategy, arguing that expenditures were being undertaken within a carefully structured framework designed to ensure accountability and prevent the accumulation of unfunded liabilities.

“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,” Okoye told the committee.

He explained that the commission was intentionally avoiding the common practice of awarding contracts without having adequate funds on hand to execute them.

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

Okoye further noted that budgetary allocations should not be confused with cash releases, stressing that infrastructure projects often require phased implementation and prudent financial planning.

“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.”

Despite the explanations, lawmakers maintained that key questions remained unanswered and insisted that the commission must provide a more detailed financial account.

The committee subsequently directed the SEDC to submit complete expenditure records, including contract details, payment schedules and all supporting documents, by June 23 for further examination.

“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,” Kalu stated.

The meeting was thereafter adjourned, with the committee reiterating its commitment to ensuring transparency and accountability in the utilisation of public funds earmarked for the development of the South-East region.