The South East Development Commission appeared before the Senate Committee on South East Development Commission yesterday as part of the National Assembly's constitutional oversight process and welcomes every opportunity to account for its stewardship of public resources.

Several issues from today's session have attracted public commentary. The Commission has addressed them directly: what the Abuja office expenditure actually covers, what "implied expenditure" means and why that money has not left our accounts, and how available funds have been deployed to build an institution and advance regional projects in the absence of any capital budget release.

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PUBLIC STATEMENT

9 June 2026

SEDC AFFIRMS COMMITMENT TO TRANSPARENCY AND FULL DISCLOSURE FOLLOWING SENATE COMMITTEE SESSION

The South East Development Commission (SEDC) today participated in an interactive session with the Senate Committee on South East Development Commission as part of the National Assembly's constitutional oversight responsibilities.

During the engagement, the Commission provided detailed briefings on its financial position, operational activities, procurement processes, institutional development, strategic partnerships, and ongoing programmes across the South East.

As part of its review, the Committee requested additional documentation relating to specific aspects of the Commission's operations and expenditure. The Commission welcomed the request and sought a short period within which to collate and transmit the materials in the level of detail required by the Committee. Following discussions, proceedings were adjourned to a later date pending submission of the requested documents, which the Commission will provide on or before 23 June 2026.

In view of public interest in the session, the Commission considers it important to clarify a number of issues that have featured prominently in public commentary.

On the Abuja Liaison Office

The expenditure relating to the Commission's Abuja Liaison Office covers the establishment and operation of a functional office facility at the Congress Building, Maitama, Abuja. It serves as the Commission's operational base for engagement with the National Assembly, federal ministries and agencies, development finance institutions, and strategic partners. The expenditure cited reflects the cumulative cost of establishing and running the office since its inauguration on 11 February 2025 to date, covering rent, operational costs, utilities, and basic fit-out works across that entire period.

The board and management have prioritised relocating to the Commission's designated headquarters in Enugu at the earliest possible opportunity. Rather than procuring an entirely new facility, which would have represented a significantly greater call on public resources, the Commission secured the transfer of an existing building from the Enugu State Government and has since entered into a formal agreement with the State Government to fast-track its rehabilitation and the Commission's transition to that facility. The contract awarded for that rehabilitation is addressed further below.

On Implied Expenditure

References to funds described as "implied expenditure" relate to a contract awarded for the rehabilitation of the Commission's headquarters facility in Enugu — a building transferred to SEDC by the Enugu State Government that requires significant work to be fit for institutional use. The contract was awarded in accordance with the Public Procurement Act 2007, following approval by the Bureau of Public Procurement and the concurrence of the supervising ministry. These commitments represent budgeted obligations that have been lawfully committed but not yet disbursed, consistent with established public sector fmancial management practice. To be precise: this money has not left the Commission's accounts.

On Expenditure to Date

It is important to note that the Commission has not received any funds from its capital budget. Notwithstanding this, and in response to the development expectations of the South East, the Commission has drawn on every available resource and goodwill to advance project development work on high-impact regional capital projects, ensuring that the necessary groundwork is in place to enable swift execution once capital releases are made.

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.

It is worth recalling that the Commission received its first disbursement of funds after more than ten months of being in existence. On the institutional side, expenditure has covered the payment of staff salaries and arrears for personnel who were operational from February 2025 and who continued to serve the Commission through that extended period of delayed fund releases, capacity training for seconded staff, the establishment of the Commission's operational bases in Abuja and Enugu, and the procurement of essential ICT infrastructure to bring the Commission to a basic standard of operational readiness.

On the programme and project development side, it has included the engagement of consultants for feasibility studies and due diligence on priority regional projects, among them a potential gas infrastructure partnership with significant energy and industrial implications for the South East, participation in the Intra-African Trade Fair in Algeria, from which the Commission is now in active development of a partnership with Afreximbank to co-develop a Project Preparation Fund targeting moribund industries across the region, the South East Vision 2050 Stakeholder Forum, and the launch and first-cycle investment of the South East Venture Capital Programme, which has delivered funded support to 25 startups across the South East.

Submission of Documentation

The Commission will submit comprehensive documentation, including procurement records, contract details, payment schedules, and supporting financial records, to the Senate Committee on or before 23 June 2026. SEDC remains fully committed to transparency, accountability, and cooperation with all constitutional oversight institutions.

The South East Development Commission was established to drive economic transformation, infrastructure development, investment mobilisation, and regional prosperity across the South East. The Commission remains focused on that mandate and is confident that a full review of the facts and supporting documentation will provide a complete picture of its activities and stewardship of public resources.

Issued by:

Office of the Managing Director/Chief Executive Officer South East Development Commission