Reps Probe Six FCT Area Councils Over Alleged N100b Financial Infractions

The House of Representatives Public Accounts Committee is beaming its searchlight on six Area Councils of the Federal Capital Territory (FCT) over alleged financial infractions exceeding N100 billion.

The affected area councils are Abaji, Abuja Municipal, Bwari, Gwagwalada, Kuje and Kwali.

The decision followed an audit report for the year ended December 31, 2021, submitted by the Auditor-General for the FCT Area Councils. The report revealed widespread cases of unremitted statutory deductions, poor asset management, and expenditures that were inadequately documented or unaccounted for.

According to the committee chaired by Bamidele Salam, the councils had outstanding liabilities totalling ₦N7.65 billion, including unpaid pension deductions, Pay-As-You-Earn (PAYE), Value Added Tax (VAT), withholding taxes, and unsettled capital project obligations. AMAC led with N2.19 billion, followed by Bwari (N1.49 billion), Kwali (N1.46 billion), Gwagwalada (N1.01 billion), Kuje (N892.2 million), and Abaji (N593.8 million).

The audit also flagged poor asset management. For example, Gwagwalada Area Council had non-current assets worth N336 million that were not properly recorded, exposing public assets to risk. Similar lapses were reported across other councils.

In 2021, the councils spent a total of N24.87 billion on personnel, overheads, and capital projects, an 89 per cent increase from 2020. However, 37 per cent of funds allocated to capital projects could not be properly accounted for.

Expenditure breakdowns showed 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.

Audit findings for 2022 and part of 2023 revealed additional violations, including understatement of internally generated revenue, unauthorised disposal of assets, non-disclosure of statutory revenue, and failure to remit withholding taxes.

The committee also indicted the councils for failing to audit and submit accounts for 2023, 2024, and 2025, contrary to statutory requirements.

Salam confirmed that the six area council chairmen and their finance directors have been summoned to appear before the committee on Wednesday, February 11, 2026. He warned that failure to comply could compel the House to invoke its constitutional powers to order their arrest.

Salam stressed that public funds must be managed with transparency and prudence, and that culpable officials would be held accountable under the law.