The Senate Committee on the South East Development Commission (SEDC) on Tuesday raised concerns over the management of funds allocated to the Commission, questioning expenditure records submitted by the agency and directing its management to provide comprehensive documentation by June 23.
The committee, chaired by Senator Orji Uzor Kalu, expressed dissatisfaction with aspects of the financial report presented by the Commission’s Managing Director, Mark Okoye, during an oversight session at the National Assembly.
At the centre of the lawmakers’ concerns were claims that the Commission spent N153 million on a one-room liaison office in Abuja and classified N2.5 billion as “implied expenditure” in its financial records. Senators questioned the justification for the expenditures and sought detailed explanations from the management team.
According to Senator Kalu, records obtained from the Central Bank of Nigeria indicated that approximately N13 billion remained from the N16.6 billion allocated to the Commission in 2025, suggesting that about N3.6 billion had already been spent and required proper accounting.
“This committee is disappointed with the financial report given, which is completely unacceptable,” Kalu stated during the session.
Other members of the committee, including Senator Enyinnaya Abaribe, Senator Victor Umeh and Senator Austin Akobundu, also faulted the presentation, describing the explanations provided by the Commission as insufficient and unconvincing.
Responding to the criticisms, Okoye maintained that no funds had been mismanaged since the establishment of the Commission, stressing that the agency’s financial decisions were guided by prudence and accountability.
He explained that the Commission had requested additional time to submit supporting documents because it was simultaneously building administrative structures, establishing operational systems and implementing development programmes expected by people across the South-East region.
“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 said.
“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.”
Addressing questions regarding office accommodation, the SEDC boss disclosed that the Commission’s permanent office facility was currently undergoing renovation and was expected to be completed by August. He argued that renting larger temporary office spaces while awaiting completion of the permanent structure would amount to unnecessary expenditure of public funds.
He further explained that recruitment efforts had been deliberately delayed until adequate office facilities were available to ensure proper supervision, accountability and productivity of staff.
On the controversial “implied expenditure” entry, Okoye said the classification was intended to ensure that project allocations were tied to available funding and procurement processes, preventing the accumulation of unfunded liabilities that could burden the Commission in the future.
According to him, the Commission’s financial management strategy aligns with guidance from the Federal Ministry of Finance and the Federal Ministry of Regional Development, both of which advocate strict fiscal discipline and sustainable project implementation.
Despite the explanations, the committee insisted on a detailed breakdown of all expenditures and directed the Commission to return with complete documentation by June 23.
“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 said.
The development marks the first major oversight scrutiny of the South East Development Commission since its inauguration, with lawmakers insisting on transparency and accountability in the management of public funds allocated to the agency.
