Senate grills SEDC boss over ₦16.6bn budget, demands explanation

The Nigerian Senate has launched a rigorous investigation into the South East Development Commission (SEDC), demanding accountability for the alleged mismanagement of ₦16.6 billion from its 2025 budget. The probe, spearheaded by the Senate Committee on South East Development Commission chaired by Senator Orji Kalu, highlights growing concerns over financial transparency at the regional development agency.

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This committee is disappointed with the financial report given, which is completely unacceptable.

During an investigative hearing, committee members expressed strong objections to the commission's financial report. Specific expenditures that drew ire included ₦153 million reportedly spent on renting a single-room liaison office in Abuja and another ₦2.5 billion categorized as "implied expenditure." Preliminary findings from the Central Bank of Nigeria suggest that only ₦13 billion remains from the initial ₦16.6 billion disbursed in December, implying approximately ₦3.6 billion has been spent without clear justification.

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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.

Senator Kalu voiced the committee's disappointment, stating the financial report was "completely unacceptable." Other lawmakers, including Senators Enyinnaya Abaribe, Victor Umeh, and Austin Akobundu, echoed these sentiments, deeming key components of the report inadequate and lacking transparency. Despite these criticisms, SEDC Managing Director Mark Okoye defended the commission's spending, asserting that funds were judiciously deployed towards priority projects and procurement realities. He explained the commission's approach to avoid awarding contracts without sufficient funding, emphasizing that a large budget does not equate to immediate cash availability.

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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 N140bn does not automatically mean that N140bn in cash is available.

However, the committee found Okoye's explanations insufficient and rejected the submission. They have ordered the SEDC to provide comprehensive documentation, including contract details, payment schedules, and all supporting documents by the 23rd of this month. The Senate intends to review these records to determine the next steps in the investigation.

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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.