The South East Development Commission (SEDC) has clarified that its Abuja office, established for N153 million, serves as an operational base for engaging with the National Assembly, federal ministries, agencies, development finance institutions, and other strategic partners. The commission stated that the expenditure covers the establishment and running of the office since its inauguration in February 2025, along with other operational expenses.
SEDC responds to Senate committee criticism
The clarification came after the Senate Committee on South East Development Commission criticized Managing Director Mark Okoye for failing to account for over N4 billion spent from the commission's 2025 budget. During a committee meeting, lawmakers led by Chairman Orji Kalu questioned the commission's contributions to regional development and demanded details of budget utilization.
The commission was initially allocated N16.6 billion in the 2025 budget. Mr. Kalu, representing Abia North, challenged Mr. Okoye over records showing N153 million annual spending on a small Abuja office, despite the commission's headquarters being in Enugu State. Mr. Okoye could not provide a satisfactory explanation, leading the committee to request comprehensive documentation by the following Tuesday.
Public scrutiny and financial management
The commission has faced intense public criticism over alleged financial mismanagement and lack of transparency. In its statement, SEDC did not specify the exact amount spent on the Abuja office but did not dispute the N153 million figure. It described the facility as a liaison office and announced plans to fully relocate to its Enugu headquarters.
“The board and management have prioritised relocating to the Commission’s designated headquarters in Enugu at the earliest possible opportunity,” the statement read. The commission also noted that it had not received any capital allocation from its budget but continued advancing project development initiatives across the region.
Expenditure focus and challenges
SEDC stated that its expenditure has focused on building institutional foundations for programme delivery and advancing project development work typically funded through the capital budget. It emphasized that no funds from the capital budget had been received, yet the commission leveraged available resources to advance high-impact regional projects.
“Expenditure to date has been directed towards building the institutional foundation and advancing project development work that would ordinarily fall within the capital budget,” the statement said. The commission received its first disbursement over ten months after establishment, with a significant portion used for salaries and operational costs.
Programmes and initiatives
Highlighting its activities, SEDC referenced participation in the Intra-African Trade Fair in Algeria, discussions with Afreximbank on a Project Preparation Fund to revive moribund industries in the South-east, the South East Vision 2050 Stakeholder Forum, and the launch of the South East Venture Capital Programme. The venture capital initiative has already funded 25 startups in the region.
The commission also engaged consultants for feasibility studies and due diligence on priority projects, including a proposed gas infrastructure partnership expected to benefit the South-east's energy and industrial sectors.
