House Summons FCT Council Chairmen Over N100bn Financial Infractions

Adedayo Akinwale in Abuja

The House of Representatives Public Accounts Committee has summoned the six Area Councils of the Federal Capital Territory (FCT) for various financial infractions amounting to over N100 billion.

The six area councils indicted in the report by the Auditor-General which was submitted to the House committee are: Abaji, Abuja Municipal, Bwari, Gwagwalada, Kuje, and Kwali.

The audit report for the year ended 31 December 2021 showed widespread cases of unremitted tax and VAT deductions, failure to update Fixed Asset Registers, and expenditures yet to be properly accounted for across the councils.

The report revealed that the councils failed to properly maintain and update their Fixed Asset Registers.

The report also indicated that the six Area Councils recorded outstanding liabilities amounting to N7.6 billion as of 31st December, 2021.

A breakdown of the unremitted liabilities showed that Abuja Municipal Area Council (AMAC) had outstanding obligations of N2.19 billion, followed by Bwari Area Council with N1.49 billion and Kwali Area Council with N1.46 billion.

The report added that Gwagwalada Area Council recorded N1.01 billion, Kuje Area Council N892.2 million, while Abaji Area Council accounted for N593.8 million, bringing the total to N7.65 billion.

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, 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 the appropriate authorities.

The liabilities comprised 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 report cited Gwagwalada Area Council, where non-current assets valued at N336 million were not adequately maintained or updated, creating room for asset losses without trace.

The report noted that this weakness was common across the other Area Councils.

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

However, 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 per cent of the expenditure purportedly allocated to capital projects was utilised.

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

He said 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.

Salam warned that the summoned chairmen and their Finance Directors had been given a final opportunity to appear on Wednesday, 11th February 2026.

He said failure to honour the invitation would compel the House to invoke its constitutional powers to order their arrest and ensure compliance.