The House of Representatives has summoned the chairmen and finance directors of the six Area Councils in the Federal Capital Territory (FCT) over alleged financial infractions exceeding N100 billion.
The action followed the submission of the Auditor-General’s report on the councils to the House Committee on Public Accounts, which indicted Abaji, Abuja Municipal (AMAC), Bwari, Gwagwalada, Kuje and Kwali Area Councils for widespread breaches of financial regulations.
The audit report for the year ended December 31, 2021, uncovered unremitted statutory deductions, weak asset management practices and expenditures that were either poorly documented or unaccounted for.
According to the report, the councils had outstanding liabilities totalling N7.65 billion as of the end of 2021. These include unpaid pension deductions, Pay-As-You-Earn (PAYE), Value Added Tax (VAT), withholding taxes, capital project obligations and other statutory remittances owed to revenue agencies, pension fund administrators and contractors.
Abuja Municipal Area Council recorded the highest liability at N2.19 billion, followed by Bwari with N1.49 billion and Kwali with N1.46 billion. Gwagwalada owed N1.01 billion, Kuje N892.2 million and Abaji N593.8 million.
The Auditor-General also criticised the councils for failing to maintain proper Fixed Asset Registers. In Gwagwalada alone, non-current assets valued at N336 million were not adequately recorded, a lapse the report warned could lead to asset losses without trace. Similar deficiencies were noted in the other councils.
The report further revealed that the six councils spent N24.87 billion in 2021 on personnel, overheads and capital projects—an 89 per cent increase of N11.7 billion compared to 2020. However, auditors queried 37 per cent of funds allocated to capital projects, citing a lack of satisfactory explanations for their utilisation.
Spending records 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 reviews covering 2022 and part of 2023 also flagged additional irregularities, including understatement of internally generated revenue, unauthorised disposal of assets, non-disclosure of statutory revenues and failure to remit withholding taxes.
Chairman of the House Committee on Public Accounts, Rep. Bamidele Salam, confirmed receipt of the report and said the committee had formally written to the affected officials to appear and respond to the findings.
“We have summoned the chairmen and their finance directors to explain the issues raised in the audit report,” Salam said.
He warned that the officials must appear before the committee on February 11, 2026, describing it as a final invitation.
“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 added.
Salam also disclosed that the councils failed to audit and submit financial statements for 2023, 2024 and 2025 as required by law, describing the situation as unacceptable.
He stressed that public funds must be managed with transparency and accountability, warning that any official found culpable would face legal consequences.
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