Tinubu Launches N150bn South-East Investment Company to Drive Industrialization and Unlock Private Sector Growth

President Bola Ahmed Tinubu has approved the establishment of the South-East Investment Company (SEIC), a federally backed investment vehicle under the newly formed South East Development Commission (SEDC), in what is being described as a critical step toward closing decades-long economic gaps in Nigeria’s South-East region.

With a projected capital base of N150 billion, the SEIC is tasked with mobilizing private sector funds, boosting industrialization, and driving inclusive growth in the zone.

According to the Presidency, the SEIC will initially be wholly owned by the SEDC but will later transition into a public-private partnership, incorporating capital from state governments, private investors, development finance institutions, and diaspora contributors. Its mandate includes overseeing targeted investments in key areas such as infrastructure, education, entrepreneurship, and other development-focused interventions.

“The SEIC represents a bold step forward in regional development. It is more than a financial vehicle. It is a long-term strategy to unlock private capital, de-risk investment, and deliver sustainable economic growth for the South-East,” said Mr. Mark Okoye, Managing Director of the SEDC, during a presentation at the State House in Abuja.

The approval comes just months after President Tinubu signed into law the South East Development Commission Act—a bill that had lingered for several years in the National Assembly before finally gaining traction in 2024. The law was touted not merely as a development tool but as a policy response aimed at addressing the deep-seated sense of marginalization that has festered in the South-East since the aftermath of the Biafran War. The region, often underfunded and underrepresented in national development initiatives, has for decades pointed to the lack of federal infrastructure projects and investment as evidence of a sustained economic exclusion.

The SEIC, inspired by the legacy of the defunct Eastern Nigeria Development Corporation (ENDC) under Dr. Michael Okpara in the 1960s, seeks to rekindle that era’s industrial growth by leveraging modern financial instruments. According to the Presidency, the company will raise funds through hybrid bonds, equity participation, and callable capital, with pilot fundraising and investments slated to begin in Q4 of 2025.

However, while the initiative has been widely welcomed, concerns about its sustainability, transparency, and scale are already being raised.

It is believed that the N150 billion capital projection is far too meagre to produce tangible transformation across the five South-East states. Some analysts suggest that the sum may not be enough to drive significant change in just one state, let alone the entire region, given the depth of infrastructural decay and youth unemployment.

There is also concern that the SEIC may end up like many other government-backed interventions—bogged down by bureaucracy, political infighting, or worse, looted by vested interests. Already, concerns are swirling that the funds could be spread thinly across multiple concurrent projects with no central focus, leading to little or no measurable impact on the region’s economy.

There’s also apprehension about whether the federal government’s commitment will remain consistent, especially if political tides shift or fiscal conditions worsen. Some believe the company’s promise of transitioning into a public-private partnership is critical, but note that success will depend heavily on investor confidence and real guarantees that funds won’t be mismanaged.

Nevertheless, the federal government insists that SEIC will undergo full regulatory and compliance vetting to ensure it operates within global standards. The Presidency said the initiative will be supported by clear governance structures, annual audits, and independent performance reviews to ensure it remains accountable and impact-driven.