Senate, SEDC Clash Over ₦16.6b Budget Utilisation as Lawmakers Demand Full Account

The Senate Committee on the South East Development Commission (SEDC) on Tuesday engaged in a heated exchange with the agency’s management over the utilisation of its ₦16.6 billion budgetary allocation, with lawmakers questioning several expenditure items and demanding full disclosure of transactions.

The session, held in Abuja and chaired by Senator Orji Kalu, who represents Abia North, turned tense after the committee raised concerns over what it described as questionable spending patterns contained in the commission’s financial submissions.

Lawmakers specifically queried the expenditure of ₦153 million on an Abuja liaison office and another ₦2.5 billion listed under “implied expenditure,” insisting that the figures required detailed justification and supporting documentation.

Kalu told the commission’s management that available records showed that only about ₦13 billion remained from the ₦16.6 billion released in December 2025, suggesting that approximately ₦3.6 billion had already been spent and must be properly accounted for.

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

He further questioned the cost of the commission’s Abuja office, describing it as excessive. “You have one little office here in Abuja. And you pay ₦153 million, one room! This committee knows,” he added.

Other committee members, including Senators Enyinnaya Abaribe (Abia South), Victor Umeh (Anambra Central), and Austin Akobundu (Abia Central), also faulted aspects of the financial report, demanding clearer explanations on expenditure items and procurement processes.

The lawmakers insisted that the commission must provide comprehensive documentation before the next sitting, stressing that oversight would not be compromised.

SEDC Defends Spending, Cites Budget Execution Strategy

In response, the Managing Director of the SEDC, Mark Okoye, defended the commission’s financial management approach, insisting that all expenditures were carried out within approved legal and procurement frameworks.

Okoye explained that the commission’s spending strategy was guided by the need to align procurement activities with actual cash releases to avoid unfunded commitments.

“Our approach has been to ensure that available resources are directed towards priority projects,” he said.

He added that it would be imprudent to award contracts based solely on budgetary provisions without confirming cash backing.

“For example, having a budget of ₦140 billion does not automatically mean that ₦140 billion in cash is available,” Okoye said. “It would be irresponsible to award contracts worth the entire budget if only ₦10 billion or ₦20 billion has actually been released.”

He warned that such practices could create unfunded liabilities and destabilise project implementation.

Despite the explanations, the committee rejected parts of the submission and ordered the commission to return with full supporting documents.

“By the 23rd, we want to have the complete documentation,” Kalu directed. “Once we receive and review the documents, we will determine the date for your next appearance before the committee.”

### SEDC Clarifies ₦153m Office Cost, ₦2.5bn Project Item

In a follow-up statement after the hearing, the SEDC clarified that the ₦153 million expenditure was linked to the establishment and operation of its Abuja liaison office located at the Congress Building, 70 Mississippi Street, Maitama.

The commission said it occupies multiple sections of the building under a lease agreement, adding that the amount covered rent, utilities, operational expenses, and office fit-out works from February 2025 to date.

On the controversial ₦2.5 billion “implied expenditure,” the agency explained that the figure relates to a contract awarded for the rehabilitation of its headquarters in Enugu.

It stated that the project was approved under the Public Procurement Act and had not yet been executed in terms of payment.

“To be precise: this money has not left the Commission’s accounts,” the statement clarified.

The SEDC further noted that funds already utilised were directed toward institutional setup, project development, stakeholder engagement, and regional development initiatives.

The commission assured the Senate Committee that all procurement records, contract documents, and payment schedules would be submitted on or before June 23, reiterating its commitment to transparency and cooperation with legislative oversight.