The House of Representatives Public Accounts Committee has summoned the chairmen of the six Area Councils of the Federal Capital Territory following allegations of financial mismanagement and regulatory violations totalling over N100 billion, as detailed in an audit report by the Auditor-General for the FCT.
The councils affected—Abuja Municipal Area Council, Bwari, Gwagwalada, Kuje, Abaji and Kwali—stand accused of widespread financial irregularities spanning multiple fiscal years, including unremitted taxes, failure to maintain proper asset records, and unexplained capital expenditure.
According to the audit report covering the year ended December 31, 2021, submitted to the Committee, the six Area Councils recorded outstanding liabilities amounting to N7.6 billion as at that date. The report identified the liabilities as comprising “unremitted pension deductions, unremitted Pay-As-You-Earn, unpaid capital project obligations, unremitted VAT and withholding taxes due to the Nigeria Revenue Service, FCT Inland Revenue Service, Pension Fund Administrators, and contractors,” according to a statement issued on Friday by the PAC media unit.
A detailed breakdown shows that Abuja Municipal Area Council had outstanding obligations of N2.19 billion, followed by Bwari Area Council with N1.49 billion and Kwali Area Council with N1.46 billion. Gwagwalada Area Council recorded N1.01 billion, Kuje Area Council N892.2 million, while Abaji Area Council accounted for N593.8 million, bringing the cumulative total to N7.65 billion.
The Auditor-General’s report also raised serious concerns about the councils’ failure to properly maintain and update their Fixed Asset Registers—a critical accounting requirement designed to prevent asset misappropriation and ensure proper inventory management. The report specifically referenced Gwagwalada Area Council, “where non-current assets valued at N336 million were not adequately maintained or updated, creating room for asset losses without trace.”
Further scrutiny revealed that the six Area Councils incurred total expenditure of N24.8 billion in 2021 on personnel, overheads and capital projects. “Despite an 89 per cent increase in total expenditure amounting to N11.7 billion compared to 2020, the councils have not accounted for how 37 per cent of the expenditure purportedly allocated to capital projects was utilised,” the audit report stated.
The expenditure breakdown indicated that Abuja Municipal Area Council spent N5.03 billion, 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, totalling N24.87 billion.
The infractions were not limited to the 2021 fiscal year. Audit findings for 2022 and part of 2023 also identified multiple violations of financial regulations, “such as understatement of actual Internally Generated Revenue, unauthorised assets disposal, non-disclosure of statutory revenue and non-remittance of withholding tax to appropriate authorities,” according to the report.
The Chairman of the Committee, Mr Bamidele Salam, confirmed receipt of the audit report and disclosed that three separate letters had been issued to the chairmen of the six Area Councils and their respective Finance Directors, summoning them to appear before the Committee to respond to the audit queries.
The Osun lawmaker issued a stern warning that the summoned chairmen and their Finance Directors had been given a final opportunity to appear on Wednesday, February 11, 2026, adding that failure to honour the invitation would compel the House to invoke its constitutional powers to order their arrest and ensure compliance.
Salam further disclosed that the Area Councils were indicted for “failure to audit and submit their financial accounts for the years 2023, 2024 and 2025, contrary to statutory requirements.”
“Public funds are expected to be managed with transparency and prudence,” Salam said, warning that any official found culpable would be held responsible in accordance with the law.
The current investigation represents the continuation of the statutory oversight function of the Public Accounts Committee, which routinely invites ministries, departments and agencies indicted in reports of the Auditor-General for the Federation or relevant audit authorities. The Committee derives its powers from the 1999 Constitution (as amended), which mandates it to examine audited accounts of public institutions, recover misappropriated funds and ensure compliance with financial regulations.
In recent years, the work of the PAC has led to the recovery of billions of naira in misappropriated public funds and the imposition of sanctions against erring public officials across various levels of government. The Committee’s interventions have become increasingly prominent as part of broader efforts by the National Assembly to strengthen fiscal accountability and transparency in the management of public resources.
The FCT Area Councils, established under the FCT Act to provide grassroots governance and service delivery within the territory, receive monthly allocations from the Federation Account, as well as internally generated revenue from taxes, levies and other sources. The councils are statutorily required to maintain proper accounting records, submit annual financial statements for audit, and remit all statutory deductions to relevant authorities in accordance with the Public Procurement Act, Financial Regulations and other applicable laws.
The alleged financial breaches come at a time of heightened national focus on local government administration and fiscal autonomy, following the Supreme Court judgment of July 2024 that granted financial independence to local governments across Nigeria. While FCT Area Councils operate under a different legal framework from state local governments, the principles of accountability and proper financial management remain universally applicable.
The outcome of the forthcoming appearance before the PAC is expected to provide clarity on the nature and extent of the alleged infractions, as well as determine what remedial and punitive measures may be recommended by the Committee. Previous PAC investigations have resulted in referrals to anti-corruption agencies, directives for the recovery of funds, and recommendations for disciplinary action against implicated officials.
