The House of Representatives Public Accounts Committee has summoned the chairmen of the six Area Councils of the Federal Capital Territory over alleged financial breaches running into over N100bn, following an indictment by the Auditor-General for the FCT.
The affected councils are Abuja Municipal Area Council, Bwari, Gwagwalada, Kuje, Abaji and Kwali.
The audit report for the year ended December 31, 2021, submitted to the Committee, revealed widespread cases of unremitted taxes and value-added tax deductions, failure to update fixed asset registers, and expenditures yet to be properly accounted for across the six councils.
The report said, “The six Area Councils recorded outstanding liabilities amounting to N7.6bn as of December 31, 2021.”
In a statement issued on Friday by the PAC media unit, the Committee said, “The liabilities comprised unremitted pension deductions, unremitted Pay-As-You-Earn, unpaid capital project obligations, unremitted VAT and withholding taxes due to the Nigeria Revenue Service, FCT Inland Revenue Service, Pension Fund Administrators, and contractors.”
A breakdown of the unremitted liabilities showed that Abuja Municipal Area Council had outstanding obligations of N2.19bn, followed by Bwari Area Council with N1.49bn and Kwali Area Council with N1.46bn.
According to the audit report, Gwagwalada Area Council recorded N1.01bn, Kuje Area Council N892.2m, while Abaji Area Council accounted for N593.8m, bringing the total to N7.65bn.
The Auditor-General also faulted the councils for failure to properly maintain and update their Fixed Asset Registers.
The report referenced Gwagwalada Area Council, “where non-current assets valued at N336m were not adequately maintained or updated, creating room for asset losses without trace.”
The report further raised concerns over expenditure totalling N24.8bn incurred by the six councils in 2021 on personnel, overheads and capital projects.
“Despite an 89 per cent increase in total expenditure amounting to N11.7bn compared to 2020, the councils have not accounted for how 37 per cent of the expenditure purportedly allocated to capital projects was utilised,” the report added.
A breakdown of the expenditure showed that Abuja Municipal Area Council spent N5.03bn, Gwagwalada Area Council N4.66bn, Kuje Area Council N3.85bn, Kwali Area Council N3.84bn, Bwari Area Council N3.74bn and Abaji Area Council N3.71bn, bringing the total expenditure to N24.87bn.
Similarly, audit findings for the year 2022 and part of 2023 also identified multiple infractions of financial regulations “such as understatement of actual Internally Generated Revenue, unauthorised assets disposal, non-disclosure of statutory revenue and non-remittance of withholding tax to appropriate authorities.”
Reacting to the development, the Chairman of the Committee, Mr Bamidele Salam, said the audit report had been received by the Committee.
He added that three separate letters had been issued to the chairmen of the six Area Councils and their respective Finance Directors, summoning them to appear before the Committee to respond to the audit queries.
The Osun lawmaker warned that the summoned chairmen and their Finance Directors had been given a final opportunity to appear on Wednesday, February 11, 2026, adding that failure to honour the invitation would compel the House to invoke its constitutional powers to order their arrest and ensure compliance.
Salam also disclosed that the Area Councils were further indicted for “failure to audit and submit their financial accounts for the years 2023, 2024 and 2025, contrary to statutory requirements.”
Salam said public funds are expected to be managed with transparency and prudence, warning that any official found culpable would be held responsible in accordance with the law.
PUNCH Online reports that the latest summons is part of the statutory oversight function of PAC, which routinely invites ministries, departments and agencies indicted in reports of the Auditor-General for the Federation or relevant audit authorities.
The Committee is empowered by the 1999 Constitution (as amended) to examine audited accounts of public institutions, recover misappropriated funds and ensure compliance with financial regulations, a process that has in recent years led to recoveries and sanctions against erring public officials.
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