SEDC denies N153m Abuja office is wasteful, blames Senate query on misunderstanding

The South East Development Commission (SEDC) has defended spending N153 million on an Abuja liaison office, saying the facility is vital for dealing with federal ministries, the National Assembly, and development partners.

The commission's Managing Director, Mark Okoye, issued a statement on Tuesday after a Senate committee publicly questioned why the commission needed an expensive Abuja office when its headquarters is in Enugu.

Senator Orji Kalu, who chairs the Senate Committee on South East Development Commission, demanded answers during a hearing where Okoye appeared to defend the commission's 2025 budget spending. Kalu said records showed the commission spends N153 million yearly on a small Abuja office.

Okoye couldn't give a clear explanation at the hearing. The committee ordered him to return next Tuesday with full documents showing how the money was spent.

The SEDC was allocated N16.6 billion in the 2025 budget. But the commission says it hasn't received any capital allocation yet — only funds for overheads and salaries.

According to the statement, the commission received its first disbursement more than ten months after it was set up in February 2025. A large chunk went to paying staff salaries and arrears for personnel who had been working since February without pay.

Other expenses included training for seconded staff, setting up operational bases in Abuja and Enugu, and buying ICT equipment to reach basic operational readiness.

The commission argued that the Abuja office covers both establishment and running costs since February 2025. It said the office is a liaison base, not a permanent headquarters.

"The board and management have prioritised relocating to the Commission's designated headquarters in Enugu at the earliest possible opportunity," the statement said.

Okoye didn't dispute the N153 million figure during the committee meeting. The statement also didn't give a separate breakdown for the office cost.

Despite the budget freeze on capital projects, the commission listed several achievements: participation in the Intra-African Trade Fair in Algeria, talks with Afreximbank on a Project Preparation Fund to revive moribund industries in the South-east, the South East Vision 2050 Stakeholder Forum, and a venture capital programme that has funded 25 startups.

The commission also said it hired consultants to study priority projects, including a gas infrastructure partnership.

Critics have accused the SEDC of financial mismanagement and lack of transparency since the Senate hearing. The commission insists its spending has focused on building the institutional foundation needed for full programme delivery.

"Expenditure to date has therefore been directed towards two mutually reinforcing objectives: building the institutional foundation on which the Commission's full programme delivery rests, and advancing project development work that would ordinarily fall within the capital budget," the statement said.