By Abuja’s Gift ChapiOdekina
The chairmen and finance directors of the six Area Councils in the Federal Capital Territory (FCT) have been called before the House of Representatives in response to revelations of significant financial violations totaling more than N100 billion.
Abaji, Abuja Municipal, Bwari, Gwagwalada, Kuje, and Kwali Area Councils were indicted for significant financial regulation infractions in the Auditor-General’s report on the FCT Area Councils, which was submitted to the House Committee on Public Accounts.
Poor asset management, unremitted statutory deductions, and expenses that were either not accounted for or not sufficiently documented were all disclosed in the audit report for the year that concluded on December 31, 2021.
The study states that as of December 31, 2021, the six Area Councils have outstanding liabilities totaling N7.65 billion. Pay-As-You-Earn (PAYE), Value Added Tax (VAT), withholding taxes, unpaid capital project commitments, unremitted pension deductions, and other statutory remittances owed to the Nigeria Revenue Service, FCT Inland Revenue Service, Pension Fund Administrators, and contractors were among the liabilities.
According to a breakdown, the largest outstanding debt, N2.19 billion, was owed by Abuja Municipal Area Council (AMAC), followed by Bwari Area Council (N1.49 billion) and Kwali Area Council (N1.46 billion). N593.8 million was reported by the Abaji Area Council, N892.2 million by the Kuje Area Council, and N1.01 billion by the Gwagwalada Area Council.
The councils were also criticized by the Auditor-General for their improper maintenance of Fixed Asset Registers. According to the audit, non-current assets worth N336 million in Gwagwalada Area Council alone were not properly updated or reported, which “creates room for asset losses without trace.”
According to the research, the other Area Councils also showed comparable shortcomings.
Furthermore, it was discovered that the six councils spent N24.87 billion in 2021 on capital projects, overheads, and personnel—an 89% increase over 2020 spending.
The audit, however, questioned the use of 37% of the money purportedly allotted to capital projects and pointed out that the councils had not offered enough justifications for their spending.
AMAC spent N5.03 billion, followed by 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), according to a breakdown of the expenditures.
Numerous violations were also found in the audit results for 2022 and a portion of 2023, including understating actual Internally Generated Revenue (IGR), disposing of assets without authorization, failing to disclose statutory revenues, and failing to pay withholding taxes to the proper authorities.
Rep. Bamidele Salam, the chairman of the House Committee on Public Accounts, responded to the allegations by confirming that the Committee had officially received the audit report.
Salam stated, “The Auditor-General’s report indicting the six FCT Area Councils for serious financial infractions amounting to billions of naira has been received by the Committee.”
He revealed that the chairmen of the impacted Area Councils and their respective financial directors had received three separate letters from the Committee inviting them to come and answer the audit questions.
“To come before this Committee and explain the issues raised in the audit report, we have formally written to the chairmen and their finance directors,” he said.
Salam cautioned that Wednesday, February 11, 2026, was the last day for the called officials to appear before the Committee.
“I want to be clear that this is the last invitation. The House will be forced to utilize its constitutional authority to force their appearance, including demanding their arrest, if they don’t honor it,” he said.
The congressman also revealed that the Area Councils were charged with violating the law by neglecting to audit and submit their financial statements for 2023, 2024, and 2025.
The failure of public entities entrusted with public monies to compile and submit their accounts for a number of years is unacceptable. Salam emphasized the need for prudent and transparent management of public funds.
He went on to say that any official found guilty of financial impropriety would face legal consequences.
