Michael Ovat, Author at Tribune Online

The Southeast Development Commission (SEDC) has stated that it has not obtained a ₦25 billion loan from any commercial bank, as alleged by the Association of Igbo Town Unions (ASITU). ASITU had alleged that the SEDC secretly secured a ₦25 billion loan at a 30 percent interest rate from a commercial bank without approval from the Debt Management Office (DMO) or the National Assembly. However, the SEDC, in a statement made available to journalists in Awka on Monday, described the allegation as "entirely false, misleading, and a calculated attempt to distract the commission's mandate and early progress." The SEDC, in the statement titled “Statement Re: Alleged N25 Billion ‘Secret’ Loan”, stated emphatically that it had not obtained any loan facility from any financial institution. It further explained that since its inauguration on 11 February, the SEDC has focused on extensive stakeholder engagement with Southeast governors, the organised private sector, civil society organisations, development partners, development finance institutions, and the general public to co-create a strategic roadmap. "It said said roadmap which defined the Commission's vision and priority programme would be made public during the 100th day in office of the Commission on May 12 while noting that implementation of 2025 budget had been extended to June 30 by the Senate." Additionally, the SEDC reaffirmed its commitment to "transparency, fiscal discipline, and accountability" and urged members of the public to "disregard unsubstantiated claims but continue to support the Commission's efforts to deliver sustainable development in the region." According to the statement, the attention of the SEDC was drawn to a report alleging that the Commission secured a ₦25 billion "secret" loan from a commercial bank without statutory approvals. *"This claim is entirely false, misleading, and appears aimed at distracting from the Commission's mandate and early progress. “We wish to state clearly: SEDC has not obtained any loan facility from any financial institution. “While awaiting the commencement of the 2025 Appropriation Act, the SEDC has focused on laying a strong institutional foundation. “In line with its developmental mandate, SEDC has and continues to explore various financing options including preliminary discussions around a potential short-term bridge facility,”* it said. The SEDC clarified that if such a facility were pursued, it would be strictly within the bounds of its approved budget and in full compliance with the law, under appropriate oversight by the Debt Management Office and other regulatory and supervisory bodies. It added that its actions would be guided by the provisions of the SEDC Act 2024 (as amended). "Any financing arrangement will be transparently procured and responsibly applied to support early programme rollout, and the launch of our Quick Win agenda - in alignment with the Renewed Hope Agenda of President Bola Ahmed Tinubu," it said. ALSO READ FROM NIGERIAN TRIBUNE