Reps audit report indicts 6 FCT area councils over N100bn infractions

By Gift ChapiOdekina, Abuja

The House of Representatives has summoned the chairmen and finance directors of the six Area Councils in the Federal Capital Territory (FCT) following revelations of massive financial infractions amounting to over N100 billion.

The development followed the submission of the Auditor-General’s report on the FCT Area Councils to the House Committee on Public Accounts, which indicted Abaji, Abuja Municipal, Bwari, Gwagwalada, Kuje and Kwali Area Councils for widespread violations of financial regulations.

The audit report for the year ended December 31, 2021, revealed cases of unremitted statutory deductions, poor asset management and expenditures that were either inadequately documented or not accounted for.

According to the report, the six Area Councils recorded outstanding liabilities totalling N7.65 billion as of December 31, 2021. The liabilities comprised unremitted pension deductions, Pay-As-You-Earn (PAYE), Value Added Tax (VAT), withholding taxes, unpaid capital project obligations and other statutory remittances due to the Nigeria Revenue Service, FCT Inland Revenue Service, Pension Fund Administrators and contractors.

A breakdown showed that Abuja Municipal Area Council (AMAC) accounted for the highest outstanding liability of 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 failure to properly maintain Fixed Asset Registers. In Gwagwalada Area Council alone, non-current assets valued at N336 million were not adequately recorded or updated, a situation the report said “creates room for asset losses without trace.”

The report noted that similar lapses were observed across the other Area Councils.

Further findings showed that the six councils spent a total of N24.87 billion in 2021 on personnel, overheads and capital projects, an 89 per cent increase of N11.7 billion compared to 2020 expenditure.

However, the audit queried the utilisation of 37 per cent of funds reportedly allocated to capital projects, noting that the councils failed to provide satisfactory explanations on how the funds were utilised.

A breakdown of the expenditure showed that AMAC spent N5.03 billion, Gwagwalada Area Council N4.66 billion, Kuje Area Council N3.85 billion, Kwali Area Council N3.84 billion, Bwari Area Council N3.74 billion and Abaji Area Council N3.71 billion.

Audit findings for 2022 and part of 2023 also revealed multiple infractions, including understatement of actual Internally Generated Revenue (IGR), unauthorised disposal of assets, non-disclosure of statutory revenues and failure to remit withholding taxes to appropriate authorities.

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

“The Committee has received the Auditor-General’s report indicting the six FCT Area Councils over serious financial infractions running into billions of naira,” Salam said.

He disclosed that the Committee had issued three separate letters to the chairmen of the affected Area Councils and their respective finance directors, summoning them to appear and respond to the audit queries.

“We have written formally to the chairmen and their finance directors to appear before this Committee and give explanations on the issues raised in the audit report,” he stated.

Salam warned that the summoned officials had been given a final opportunity to appear before the Committee on Wednesday, February 11, 2026.

“Let me make it clear that this invitation is the final one. Failure to honour it will leave the House with no option but to invoke its constitutional powers to compel their appearance, including ordering their arrest,” he warned.

The lawmaker also disclosed that the Area Councils were indicted for failing to audit and submit their financial statements for the years 2023, 2024 and 2025, contrary to statutory requirements.

“It is unacceptable that public institutions entrusted with public funds would fail to prepare and submit their accounts for several years. Public funds must be managed with transparency and prudence,” Salam stressed.
He added that any official found culpable of financial misconduct would be held accountable in accordance with the law.

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