House summons FCT Area Council Chairmen over N100bn audit infractions

The House of Representatives Public Accounts Committee (PAC) has summoned the chairmen and finance directors of the six Federal Capital Territory (FCT) Area Councils over alleged financial infractions running into over N100 billion.

The summons followed the submission of an audit report by the Auditor-General for the FCT Area Councils, which indicted Abaji, Abuja Municipal Area Council (AMAC), Bwari, Gwagwalada, Kuje and Kwali for widespread violations of financial regulations.

The audit report for the year ended December 31, 2021, uncovered several infractions, including failure to remit tax and Value Added Tax (VAT) deductions, poor asset management practices, and expenditures that were either not properly documented or unaccounted for.

According to the report, the six councils recorded outstanding liabilities of N7.65 billion as of December 31, 2021. These liabilities comprised unremitted pension deductions, Pay-As-You-Earn (PAYE) taxes, unpaid capital project obligations, and unremitted VAT and withholding taxes owed to the Nigeria Revenue Service (NRS), FCT Inland Revenue Service, Pension Fund Administrators, and contractors.

A breakdown of the liabilities showed that AMAC accounted for N2.19 billion, followed by Bwari Area Council with N1.49 billion and Kwali Area Council with N1.46 billion. Gwagwalada Area Council recorded N1.01 billion, Kuje Area Council N892.2 million, while Abaji Area Council had N593.8 million in outstanding obligations.

The Auditor-General also faulted the councils for poor asset management, citing widespread failure to maintain and update Fixed Asset Registers. In Gwagwalada Area Council alone, non-current assets valued at N336 million were reportedly not properly documented, raising concerns over possible asset losses. Similar lapses were observed across the other councils.

Further audit findings revealed that the councils incurred a combined N24.87 billion in expenditure in 2021 on personnel costs, overheads and capital projects. Despite an 89 per cent increase in expenditure, amounting to N11.7 billion compared to 2020, the report noted that 37 per cent of funds allocated to capital projects were not properly accounted for.

An expenditure breakdown showed that AMAC spent N5.03 billion, Gwagwalada N4.66 billion, Kuje N3.85 billion, Kwali N3.84 billion, Bwari N3.74 billion, and Abaji N3.71 billion during the period under review.

Audit reports for 2022 and part of 2023 further highlighted additional infractions, including understatement of Internally Generated Revenue (IGR), unauthorised disposal of assets, non-disclosure of statutory revenues and failure to remit withholding taxes to relevant authorities.

Reacting to the report, the Chairman of the Public Accounts Committee, Rep. Bamidele Salam, confirmed that the audit findings had been formally received by the committee.

He disclosed that three separate letters had been issued to the chairmen of the six Area Councils and their finance directors, summoning them to appear before the committee to respond to the audit queries.

Salam said the officials have been given a final opportunity to appear on Wednesday, February 11, 2026, warning that failure to honour the summons would compel the House to invoke its constitutional powers, including ordering their arrest.

He added that the councils were also indicted for failing to audit and submit their financial accounts for 2023, 2024 and 2025, in breach of statutory requirements.

Salam stressed that public funds must be managed with transparency and accountability, warning that any official found culpable would be dealt with in accordance with the law.