Reported by: Ijeoma G | Edited by: Gabriel Osa
The House of Representatives Public Accounts Committee (PAC) has formally summoned the chairmen and senior finance officials of all six Federal Capital Territory (FCT) Area Councils following revelations of extensive financial irregularities amounting to more than ₦100 billion. The move, announced on Friday, February 6, 2026, comes after the Auditor-General for the FCT Area Councils submitted a detailed audit report to the committee that indicted the councils for alleged breaches of financial regulations, lapses in statutory remittances and failures in accountability.
The councils implicated are Abuja Municipal Area Council (AMAC), Bwari, Gwagwalada, Kuje, Abaji, and Kwali. The audit, which covers the financial year ended December 31, 2021, uncovered widespread instances of financial mismanagement, including unremitted statutory deductions such as pension contributions, Pay-As-You-Earn (PAYE) taxes, Value Added Tax (VAT), withholding taxes, and other statutory obligations. Permanent liabilities cumulatively amounted to ₦7.65 billion across the councils, although broader irregularities noted by auditors place total discrepancies well beyond ₦100 billion when including unaccounted expenditures and poor asset management practices.
In addition to statutory remittances, the report highlighted that several councils failed to maintain proper financial records and lacked updated fixed asset registers. In one instance, Gwagwalada Area Council reportedly failed to properly document non-current assets valued at ₦336 million, a lapse that auditors said could expose public assets to loss or misuse in the absence of adequate records. Similar shortcomings were observed across other councils, raising concerns about compliance with basic financial governance standards.
The audit also showed that collectively the six area councils spent ₦24.87 billion in 2021 on personnel costs, overheads and capital projects. This figure represented an increase of 89 per cent compared to the previous year, yet auditors noted that councils were unable to suitably justify or document how about 37 per cent of capital project funds were applied, further deepening questions around financial accountability.
Responding to the findings, Rep. Bamidele Salam, Chairman of the Public Accounts Committee, confirmed that the audit report had been received and was under active review. He disclosed that the chairmen and finance directors of the six councils had been issued formal summons to appear before the committee to answer questions and provide explanations on the multiple audit queries. The officers were given a final deadline to appear on Wednesday, February 11, 2026, and were warned that failure to do so could lead to the committee invoking its constitutional powers, including ordering their arrest to ensure compliance.
Part of the audit concerns extends beyond the 2021 fiscal year, with audit findings for 2022 and part of 2023 also flagging additional infractions. These include the understatement of internally generated revenue, unauthorized disposal of assets, nondisclosure of statutory revenue, and failure to remit withholding taxes appropriately. In some cases, councils also reportedly failed to prepare or submit statutory financial statements for more recent years, including 2023 through 2025, contrary to statutory requirements, deepening concerns about transparency and statutory compliance.
The actions by the House of Representatives reflect increasing pressure on local authorities to strengthen financial governance and accountability in the administration of public funds. Area councils in the Federal Capital Territory have historically faced scrutiny over revenue collection, statutory remittances and financial management, as they are responsible for delivering essential services at the grassroots level within the nation’s capital region.
Observers note that the scale of the alleged breaches and the prolonged failure to address repeated audit warnings have generated significant public and legislative concern. The PAC’s move to summon chairmen and finance directors is intended to compel accountability and rectify persistent administrative weaknesses, as well as to ensure that public funds are prudently managed in accordance with financial regulations and statutory requirements.
In addition to questioning and documentation, the committee may recommend further actions or sanctions depending on the explanations provided and the evidence presented during hearings. These actions could extend to referring matters for further investigation by anti-corruption agencies or mandating recovery of funds where misuse or misappropriation is established.
For the affected councils, the scrutiny underscores ongoing challenges in local government administration within the FCT, where rapid urban growth and expanding public service demands have placed increasing emphasis on the need for robust financial management systems. Strengthening internal controls, improving financial reporting, and ensuring the timely remittance of statutory obligations are likely to be central themes in upcoming committee hearings as lawmakers seek to enforce fiscal discipline and protect public resources entrusted to local authorities.
As the situation unfolds, the House of Representatives PAC’s engagements with the six council chairmen and their finance directors will be closely watched by stakeholders across the public sector, with potential implications for policymaking, local governance reforms and broader accountability frameworks within Nigeria’s federal capital administration.
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