ISSUES WITH SOUTH EAST DEVELOPMENT COMMISSION

The establishment of the SEDC was widely welcomed in the South East region as a necessary critical intervention to drive sustainable economic growth and position the region as a premier investment destination by 2035. The South East region comprises the five major Igbo speaking states, namely, Abia, Anambra Ebonyi, Enugu and Imo.  

As a well-meaning South Easterner, I have been following the activities of SEDC religiously. In July 2025, precisely six months after the President inaugurated the pioneer board, the commission unveiled a 10-year roadmap to transform the South East region through investments, public-private sector partnerships and innovative financing. The commission achieved this with the support of the United Nations Development Programme (UNDP).

Armed with the strategic roadmap, the SEDC swung into action. According to the roadmap, the vision of the commission is “to position the South East as the preferred investment destination in Africa by 2025,” while its mission is “to drive sustainable development, economic growth and unity in South East, through strategic investments and empowerment initiatives.”

A perusal of the roadmap reveals that it has five strategic objectives. The objectives include, to collaborate with state governments, private sector, development partners, Development Finance Institutions (DFIs), among others, to achieve a $200 Billion Economy by 2035, leveraging key growth sectors, such as agriculture, industrialisation, creative economy and tourism. To pursue transformative high-impact projects that catalyze regional economic development, including infrastructure, energy and technology hubs. To enhance the ease of doing business by improving infrastructure, providing regulatory support and access to finance, to make the region a preferred destination for investment.

The roadmap took into cognizance the expectations of the people of South East, relying on feedback from social media users. Based on the total of responses received, 46 percent voted for the construction of regional railway, 32 percent gas pipeline, 14 percent sea/river port and 8 percent federal highway/road project. 

The roadmap detailed the take-off plan, including stakeholder engagement with the South East Governors and the organised private sector (OPS). Highlights of the engagement with the governors include alignment of the SEDC mandate with the development agenda of the state governments and collaboration on the execution of priority projects in individual states in alignment with the Renewed Hope Agenda of the Tinubu administration. The commission will support current industrial park/cluster projects championed by the governors and the development of a long term South East development plan, with clear delineation of the roles of the state, SEDC, private sector and development partners.

Similarly, members of the OPS were presented the broad SEDC roadmap and feedback were received. Key drivers of accelerated industrialisation were identified, particularly for gas infrastructure. The roadmap emphasized the importance of viewing the region as a single economic bloc, with improved ease of doing business, and committed to periodic engagements with the private sector to ensure an alignment of the SEDC projects with the needs of the private sector.

Finally, the roadmap listed the proposed projects and programmes of the commission, such as the South East Security Intervention Programme, the South East Regional Economic and Industrial Programme, South East Agro-Development Programme and the establishment of the South East Investment Company (SEIC), which has been approved by the President. So far SEDC is the only regional commission to receive approval from the President to establish an investment company.

The other projects and programmes of the commission are project preparation-feasibility studies, outlining business cases, geographical studies and detailed engineering designs, Renewed Hope Housing and New Market Development, Renewed Hope Agenda Community Social Impact Programmes, South East Venture Capital Fund of $50 million, South East Youth Entrepreneurship and Empowerment Programme, South East Grassroots Recreation Infrastructure Development (SEGRID) programme, Talent Development and Leadership, to mention but a few. The roadmap contains the details of these programmes.       

Besides the development of the roadmap, the management of SEDC has been prudent and resourceful in the utilisation of the funds the commission received from the Federal Government. Information in public domain indicates that out of the N140 billion budgetary allocation approved for the commission by the National Assembly, it has so far received about N16 billion. The amount received represents 11 percent of the budgetary allocation of the commission.  

Evidence abounds that the management of the commission has been judicious in spending. The management, for instance, did not go for a new contractor to complete its permanent headquarters donated by the Enugu State Government. Rather, it brought back the contractor that handled the construction of the four-story building to do an assessment of what it would cost to make the building ready for use.

Based on the assessment done by the contractor, the Management decided to fund the completion of the permanent headquarters from Federal Government disbursements to the commission. The contractor assured that the building would be ready for use by the end of August this year.

Equally, in a bid to conserve funds, SEDC has been operating with seconded staff from federal ministries. Although each of the newly established regional commissions received approval from the Federal Government to recruit 50 staff, SEDC has not employed anybody. According to insiders, the recruitment was delayed to avoid employing people to come and idle away in Enugu when their offices are not ready.

A few days ago, the Senate Committee on SEDC launched a purported probe of financial mismanagement and accountability issues, regarding the 2025 budget of the commission. The committee led by Senator Orji Uzor Kalu, representing Abia Central, alleged that the commission was unable to account for how it spent N3 billion out of N16 billion budgetary allocation. Senator Kalu mentioned key issues under investigation, including questionable expenditures, such as N153 million payment made by the commission for a one-room office in Abuja and N2.5 billion line item classified as “implied expenditure.” The former Abia State Governor who questioned the contribution of the SEDC to the South East since its creation, noted that that Central Bank of Nigeria (CBN) records indicated that only N13 billion remains from the N16 billion released to the commission by the Federal Government.

However, the SEDC Managing Director, Mark Okoye, defended the agency’s spending. Okoye explained that the contracts were awarded based on actual cash releases to prevent the accumulation of unfunded liabilities, rather than spending based on full budgetary provisions.

Okoye stated that the said one-room office apartment in Abuja serves as the liaison of the commission. According to him the management and board have proritised relocation to the permanent office of the commission in Enugu at the earliest possible opportunity.

Without prejudice to the outcome of the purported probe, I have a few reservations about this investigation being conducted by the Senators. It appears more to me like a witch-hunt than an investigation. I say this with utmost sense of responsibility.

I don’t see anything wrong with SEDC maintaining a one-room liaison office in the Federal Capital Territory (FCT) Abuja. After all, the commission is a federal government establishment.  A liaison office is an outpost for facilitating relationships between an organisation and external bodies. I heard the Managing Director of the commission, Mr. Okoye explain before the senators that the liaison office serves as an operation base for engagement between senators and the National Assembly, federal ministries and agencies, development finance institutions and other strategic partners.

I passionately appeal to our Distinguished Senators not to allow themselves to be the cog in the wheel of progress in the South East. Those who are looking for money to fund their re-election should look elsewhere. The fund released to SEDC is for the development of the South East, not to fund the election of anybody.

Emmanuel Nzomiwu, Awka, Anambra State