Muhammed Abubakar, Reporting
AN audit report by the Office of the Auditor-General for the Federal Capital Territory (FCT) Area Councils has indicted all six councils over widespread financial infractions amounting to more than ₦100 billion, prompting the House of Representatives to summon their chairmen and finance directors.
The report, which covers the financial year ended 31 December 2021, was submitted to the House Committee on Public Accounts and indicted the Abaji, Abuja Municipal, Bwari, Gwagwalada, Kuje and Kwali Area Councils for multiple violations of financial regulations.
Key findings include persistent non-remittance of tax and Value Added Tax (VAT) deductions, failure to maintain and update Fixed Asset Registers, and large sums of public expenditure yet to be properly accounted for.
According to the audit, the six Area Councils had accumulated outstanding liabilities totalling N7.65 billion as at 31 December 2021. These liabilities comprise unremitted pension deductions, Pay-As-You-Earn (PAYE) taxes, unpaid obligations on capital projects, as well as unremitted VAT and withholding taxes due to the Nigeria Revenue Service, FCT Inland Revenue Service, Pension Fund Administrators and contractors.
A breakdown of the unremitted liabilities showed that Abuja Municipal Area Council (AMAC) recorded the highest outstanding amount of N2.19 billion, followed by Bwari Area Council with N1.49 billion and Kwali Area Council with N1.46 billion. Gwagwalada Area Council accounted for N1.01 billion, Kuje Area Council N892.2 million, while Abaji Area Council recorded N593.8 million.
The Auditor-General also faulted the councils for poor asset management, particularly the failure to properly maintain Fixed Asset Registers.
In Gwagwalada Area Council alone, non-current assets valued at N336 million were neither adequately recorded nor updated, a lapse the report warned could lead to untraceable asset losses.
Similar weaknesses were observed across the other councils.
Further concerns were raised over total expenditure of N24.87 billion incurred by the councils in 2021 on personnel costs, overheads and capital projects. Despite an 89 per cent increase in spending—amounting to N11.7 billion—compared to 2020, the audit noted that the councils failed to account for how 37 per cent of funds reportedly allocated to capital projects were utilised.
Expenditure figures 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 during the period under review.
The audit report further disclosed that findings from 2022 and part of 2023 revealed additional infractions, including understatement of actual Internally Generated Revenue (IGR), unauthorised disposal of assets, non-disclosure of statutory revenue and failure to remit withholding taxes to appropriate authorities.
Reacting to the report, Chairman of the House Committee on Public Accounts, Hon. Bamidele Salam, confirmed that the committee had formally received the audit report and had issued three separate summons to the chairmen of the six Area Councils and their respective finance directors.
According to him, the officials have been given a final opportunity to appear before the committee on Wednesday, 11 February 2026, to respond to the audit queries.
He warned that failure to honour the summons would compel the House to invoke its constitutional powers to order their arrest and enforce compliance.
Hon. Salam also disclosed that the councils were indicted for failing to audit and submit their financial accounts for the years 2023, 2024 and 2025, in clear violation of statutory requirements.
He stressed that public funds must be managed with transparency and prudence, warning that any official found culpable would be held accountable in accordance with the law.
