An audit report indicating the six Area Councils in the Federal Capital Territory over financial infractions running into more than N100 billion, has prompting the House of Representatives to summon council chairmen and senior finance officials to account for the alleged breaches.
The report which was compiled by the Auditor-General for the FCT Area Councils and submitted to the House of Representatives Public Accounts Committee, covers the financial year ended 31 December 2021 and highlights widespread alleged violations, including unremitted taxes and deductions, weak asset management and expenditure that remains unaccounted for.
According to the audit, the councils of Abaji, Abuja Municipal, Bwari, Gwagwalada, Kuje and Kwali collectively recorded outstanding liabilities of about N7.6 billion as at the end of 2021. These liabilities were linked to alleged non-remittance of pension deductions, Pay-As-You-Earn taxes, Value Added Tax, withholding taxes, unpaid capital project obligations and other statutory payments due to revenue authorities, pension fund administrators and contractors.
A breakdown of the figures showed that Abuja Municipal Area Council accounted for the largest share with N2.19 billion in outstanding obligations. Bwari followed with N1.49 billion, while Kwali recorded N1.46 billion. Gwagwalada’s liabilities stood at N1.01 billion, Kuje at N892.2 million and Abaji at N593.8 million, bringing the total to about N7.65 billion.
The Auditor-General also faulted the councils over alleged failure to properly maintain Fixed Asset Registers. The report cited Gwagwalada Area Council, where non-current assets valued at N336 million were reportedly not adequately recorded or updated, creating what the audit described as opportunities for assets to be lost without trace. Similar weaknesses were observed across the other councils.In addition, the audit raised red flags over total expenditure of about N24.8 billion incurred by the six councils in 2021 on personnel, overheads and capital projects. Despite an 89 per cent rise in spending, amounting to roughly N11.7 billion compared with 2020, the report stated that the councils failed to properly account for how 37 per cent of funds earmarked for capital projects were utilised.
Expenditure figures showed that Abuja Municipal Area Council 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, bringing total spending to N24.87 billion.
The audit findings for 2022 and part of 2023 further pointed to alleged infractions such as understatement of Internally Generated Revenue, unauthorised disposal of assets, non-disclosure of statutory revenue and failure to remit withholding taxes to the appropriate authorities.
Reacting to the report, Chairman of the House of Representatives Public Accounts Committee, Rep. Bamidele Salam, confirmed that the document had been formally received and was already under consideration.
“We have received the audit report from the Auditor-General for the FCT Area Councils, and the issues raised are serious,” Salam said.
He disclosed that the committee had issued three separate letters to the chairmen of the six Area Councils and their respective finance directors, summoning them to appear and respond to the audit queries.
“They have been given a final opportunity to appear before the committee on Wednesday, 11 February 2026.
“Failure to honour this invitation will leave the House with no option but to invoke its constitutional powers to compel their attendance, including ordering their arrest,” Salam warned.
Salam also revealed that the councils were indicted for allegedly failing to audit and submit their financial accounts for the years 2023, 2024 and 2025, in breach of statutory requirements.
“Public funds must be managed with transparency and prudence.
“Any official found culpable will be held accountable in line with the law” he said.
