Senate queries SEDC’s Mark Okoye over N16.6bn spending, demands explanation for N153m office rent

Drama unfolded at the National Assembly on Tuesday as the Senate Committee on the South East Development Commission (SEDC) grilled the commission’s Managing Director, Mark Okoye, over the utilisation of funds released to the agency, including a controversial N153 million expenditure for the rental of a one-room liaison office in Abuja.

The committee, chaired by Senator Orji Uzor Kalu, expressed strong dissatisfaction with the commission’s financial report while reviewing its expenditure profile and demanded a detailed breakdown of how the N16.6 billion released to the agency from the 2025 budget had been spent.

Lawmakers also questioned an additional N2.5 billion listed as “implied expenditure” in the commission’s records, describing the spending details provided by the agency as unclear and inadequately substantiated.

According to the committee, information obtained from the Central Bank of Nigeria (CBN) showed that about N13 billion remained from the N16.6 billion released to the commission in December 2025, indicating that approximately N3.6 billion had already been spent and must be fully accounted for.

Expressing disappointment with the financial report presented by the commission, Senator Kalu said the committee found the submissions unacceptable.

“This committee is disappointed with the financial report given, which is completely unacceptable,” he stated.

Other members of the committee, including Senators Enyinnaya Abaribe, Victor Umeh and Austin Akobundu, also faulted the report and demanded clearer explanations and documentary evidence to support the expenditures.

As the session progressed, tensions rose with lawmakers repeatedly challenging the commission’s explanations, insisting that every expenditure must be backed by verifiable records.

In response, Okoye defended the commission’s spending pattern, maintaining that all expenditures were made prudently and within a framework designed to ensure fiscal responsibility and sustainability.

“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 added that the commission was deliberately avoiding the common practice of awarding contracts without corresponding funds to execute them.

“What we want to avoid is a situation where contracts are awarded without the financial capacity to execute them,” he said.

The SEDC boss further explained that budgetary allocations do not automatically translate into cash availability, noting that infrastructure projects require careful planning and phased funding.

“For example, having a budget of N140 billion does not automatically mean that N140 billion in cash is available,” he explained.

“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.”

Despite the explanations, committee members remained unconvinced, insisting that the commission had failed to provide sufficient justification for several expenditures, including the N153 million office rent and the N2.5 billion categorised as implied expenditure.

Consequently, the committee directed the management of the commission to submit comprehensive financial records, including detailed contract breakdowns, payment schedules and all 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 will determine the date for your next appearance before the committee,” Senator Kalu said.

The chairman thereafter adjourned the session, reiterating the committee’s expectation that all requested information must be submitted within the stipulated timeframe for further legislative scrutiny.

The development signals increased oversight of the newly established regional development commission as lawmakers seek greater transparency and accountability in the management of public funds.