Reps panel summons 6 FCT area councils over N100bn infractions

The House of Representatives Public Accounts Committee (PAC) has summoned chairmen and finance directors of the six Federal Capital Territory (FCT) Area Councils over alleged financial infractions amounting to 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, Bwari, Gwagwalada, Kuje and Kwali Area Councils for widespread breaches of financial regulations.

The audit report for the year ended December 31, 2021, revealed cases of unremitted tax and Value Added Tax (VAT) deductions, failure to maintain and update Fixed Asset Registers, and expenditures that were not properly accounted for across the councils.

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

A breakdown of the unremitted liabilities showed that Abuja Municipal Area Council (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.

The Auditor-General also faulted the councils for poor asset management, noting widespread failure to properly maintain and update Fixed Asset Registers. In Gwagwalada Area Council alone, non-current assets valued at N336 million were reportedly not adequately documented, creating the risk of untraceable asset losses. The report said similar lapses were observed in the other councils.

Further concerns were raised over total expenditure of N24.87 billion incurred by the councils in 2021 on personnel, overheads and capital projects. Despite an 89 per cent increase in total expenditure amounting to N11.7 billion compared to 2020, the report noted that 37 per cent of funds reportedly 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.

Audit findings for 2022 and part of 2023 further identified infractions including understatement of Internally Generated Revenue (IGR), unauthorised disposal of assets, non-disclosure of statutory revenue and failure to remit withholding tax to appropriate authorities.

Reacting to the report on Friday, 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 summoned officials had been given a final opportunity to appear on Wednesday, February 11, 2026, warning that failure to honour the invitation 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 the years 2023, 2024 and 2025, in violation of statutory requirements.

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

Nigerians can now invest ₦2.5 million on premium domains and profit about ₦17-₦25 million. All earnings paid in US Dollars. Rather than wonder, click here to find out how it works.

Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.