An audit conducted by the Auditor-General for the Federal Capital Territory (FCT) Area Councils has uncovered financial irregularities exceeding N100 billion across the six councils of the territory.
Consequently, the House has summoned the leadership of the councils, namely Abaji, Abuja Municipal, Bwari, Gwagwalada, Kuje and Kwali.
|
|
The audit report, covering the financial year ended 31 December 2021 and submitted to the House Public Accounts Committee (PAC), details widespread breaches of financial regulations, including failure to remit statutory deductions, poor asset management and expenditure that could not be satisfactorily accounted for.
According to the findings, the councils collectively carried outstanding liabilities of about N7.6 billion as at 31 December 2021.
|
|
|
|---|
These obligations stemmed from unremitted pension contributions, Pay-As-You-Earn (PAYE), Value Added Tax (VAT), withholding taxes, unpaid capital project commitments and other statutory deductions owed to the Nigeria Revenue Service (NRS), FCT Inland Revenue Service, Pension Fund Administrators, and contractors.
A council-by-council analysis showed that Abuja Municipal Area Council (AMAC) accounted for the highest unremitted amount at N2.19 billion. Bwari followed with “N1.49 billion, while Kwali recorded N1.46 billion.”
Gwagwalada had liabilities of N1.01 billion, Kuje N892.2 million and Abaji N593.8 million.
The Auditor-General also criticised the councils for failing to properly maintain Fixed Asset Registers, warning that the lapses exposed public assets to loss.
In Gwagwalada Area Council alone, non-current assets valued at about N336 million were reportedly “not adequately maintained or updated, creating room for asset losses without trace.”
Further concerns were raised over total spending of N24.87 billion by the six councils in 2021 on personnel costs, overheads and capital projects. While overall expenditure rose by 89 per cent, or N11.7 billion, compared with 2020, the audit noted that 37 per cent of the funds reportedly earmarked for capital projects could not be properly accounted for.
The spending breakdown indicated that AMAC expended N5.03 billion, Gwagwalada N4.66 billion, Kuje N3.85 billion, Kwali N3.84 billion, Bwari N3.74 billion and Abaji N3.71 billion.
Beyond the 2021 audit, reviews for 2022 and part of 2023 reportedly revealed additional violations, including understatement of actual Internally Generated Revenue (IGR), unauthorised disposal of assets, non-disclosure of statutory revenue and failure to remit withholding taxes to relevant authorities.
Confirming receipt of the report, the Chairperson of the House Public Accounts Committee, Bamidele Salam (PDP, Osun), said the committee had issued three separate letters summoning the chairmen of the six area councils and their respective Finance Directors to appear and respond to the audit queries.
READ ALSO: Electoral Act Amendment: Reps set up conference committee to harmonise bill with Senate version
He said the officials had been given a final opportunity to appear before the committee on Wednesday, 11 February 2026, warning that failure to honour the summons would leave the House with no option but to invoke its constitutional powers to compel their appearance.
Mr Salam also disclosed that the councils were cited for failing to audit and submit their financial statements for 2023, 2024 and 2025, in violation of statutory requirements.
He stressed that public resources must be handled with transparency and accountability, adding that “any official found culpable would be held to account in line with the law.”
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
