Reps Summon 6 FCT Area Councils Over Alleged N100Bn Financial Infractions

By Alkassim Bala Tsakuwa, Abuja

The Public Accounts Committee (PAC) of the House of Representatives has summoned the six (6) Area Councils of the Federal Capital Territory (FCT) over an alleged financial infractions of over N100 billion.

The summon followed the 2021 report by the Office of the Auditor General for the Federation (OAuGF) submitted to the Committee which indicted the six Area Councils which include; Abaji, Abuja Municipal, Bwari, Gwagwalada, Kuje and Kwali.

Chairman of the Committee, Hon. Bamidele Salam ordered the summon after the Committee’s sitting on Friday.

The Auditor-General report for the year ended 31 December 2021,revealed alleged cases of unremitted tax and VAT deductions, failure to update Fixed Asset Registers, and expenditures that are not properly accounted for across the six Area councils.

According to the report, the six Area Councils recorded outstanding liabilities amounting to N7.6 billion as of 31 December 2021 which comprised of unremitted pension deductions, unremitted Pay-As-You-Earn (PAYE), unpaid capital project obligations, unremitted Value Added Tax (VAT), and withholding taxes due to the Nigeria Revenue Service (NRS), FCT Inland Revenue Service, Pension Fund Administrators, and contractors.

The breakdown of the unremitted liabilities showed that Abuja Municipal Area Council (AMAC) had outstanding obligations of N2.19 billion, Bwari Area Council has N1.49 billion and Kwali Area Council having N1.46 billion as outstanding.

Gwagwalada Area Council has N1.01 billion, Kuje, N892.2 million, while Abaji Area Council accounted has N593.8 million, bringing the total to N7.65 billion.

The Auditor-General report also faulted the councils for failing to properly maintain and update their Fixed Asset Registers.

According to the report, Gwagwalada Area Council, has non-current assets valued at N336 million were not adequately maintained or updated allegedly leading to asset losses without trace which it stated that is a weakness common across all the other Area Councils.

The report also raised concerns over a N24.8 billion expenditure incurred by the six councils in 2021 on personnel, overheads and capital projects.

It added that, despite an 89 per cent increase in total expenditure amounting to N11.7 billion when compared to 2020, the councils have not accounted for how 37% of the expenditure purportedly allocated to capital projects was utilised.

Similarly, a breakdown of the expenditure showed that Abuja Municipal Area Council 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, bringing the total expenditure to N24.87 billion.

Audit findings for the year 2022 and part of 2023 also identify multiple infractions of financial regulations such as understatement of actual Internally Generated Revenue (IGR), unauthorised assets disposal, non disclosure of statutory revenue and non remittance of withholding tax to appropriate authorities.

Reacting to the report, Chairman of the Committee, Hon. Bamidele Salam, confirmed that the audit report had been formally received by the Committee.

According to him, 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.

Hon. Salam warned that the summoned chairmen and their Finance Directors had been given a final opportunity to appear on Wednesday 11th February, 2026, adding that failure to honour the invitation would compel the House to invoke its constitutional powers to order their arrest and ensure compliance.

He added that the Area Councils were also indicted for failure to audit and submit their financial accounts for the years 2023, 2024 and 2025, contrary to statutory requirements.

He stressed the need for public funds to be managed with transparency and prudence.

He warned that any official found culpable would be held responsible in accordance with the law.