The Senate has put the management of the South East Development Commission (SEDC) on the spot over how it spent money from its 2025 budget. At the centre of the controversy is N153 million the commission allegedly paid to rent a one-room liaison office in Abuja — even though its corporate headquarters is in Enugu.

During an investigative hearing on Tuesday, the Senate Committee on SEDC, chaired by former Abia governor Orji Uzor Kalu, grilled the commission's Managing Director, Mark Okoye, over the expenditure. Lawmakers said the commission received N16.6 billion in December 2025 but only about N13 billion remains in its account. That means roughly N3.6 billion has been spent, and the committee wants a full breakdown.

“This committee is disappointed with the financial report presented. It's completely unacceptable,” Kalu said.

Other committee members — including Senators Enyinnaya Abaribe, Victor Umeh and Austin Akobundu — also voiced concerns. They pointed to what they called N2.5 billion in “implied expenditure” buried in the commission’s financial report without proper documentation.

Okoye defended the spending. He said the commission’s strategy was to tie projects and procurement to actual cash releases, not just budget allocations. “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.

He argued that awarding contracts based on the full budget — N140 billion — without corresponding cash would create unfunded liabilities. “It'd be irresponsible to award contracts worth the entire budget if only N10 billion or N20 billion has actually been released,” Okoye added.

The committee wasn't satisfied. It ordered the commission to submit comprehensive records of all expenditures — including contract details, payment records and supporting documents — on or before June 23.

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

The hearing was adjourned. The SEDC now has two weeks to produce the paperwork or face further questions.

  • N16.6 billion: Amount released to SEDC from its 2025 budget in December 2025
  • N3.6 billion: Estimated amount spent so far (balance is about N13 billion)
  • N153 million: Alleged rent paid for a one-room liaison office in Abuja
  • N2.5 billion: “Implied expenditure” flagged by the committee without proper records
  • N140 billion: Total 2025 budget of the SEDC
  • June 23: Deadline to submit all supporting documents to the Senate committee

The SEDC was established by the South East Development Commission Act, signed into law by President Bola Tinubu in 2023, to drive reconstruction and development in the five states of the South-East region. The commission has faced scrutiny before over its spending priorities, but this is the first time the Senate has publicly demanded a detailed account of its finances.