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FCT Area Council Chairmen face sanctions over N100bn audit queries

The House of Representatives issues final summons to FCT council officials after repeated absences.

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FCT Area Council Chairmen face sanctions over N100bn audit queries
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The six Area Council Chairmen of the Federal Capital Territory (FCT) are under scrutiny as they failed to appear before the House of Representatives Public Accounts Committee regarding alleged financial infractions amounting to approximately N100 billion. Despite requesting to appear on September 22, 2026, none of the chairmen attended or sent representatives, prompting the committee to issue a final summons.

The committee has now directed the Directors of Personnel Management and Finance, along with the Heads of Audit from the six councils, to appear before it on October 14, 2026. Failure to comply may result in sanctions as stipulated by relevant service rules. The audit queries stem from the Annual Audit Report of the Auditor-General for the Six FCT Area Councils, covering the fiscal year ending December 31, 2021.

The audit report highlights outstanding liabilities totaling about N7.65 billion, which include unremitted pension deductions, Pay As You Earn (PAYE), Value Added Tax, and withholding tax, as well as unpaid obligations to contractors. Among the councils, the Abuja Municipal Area Council (AMAC) reported the highest outstanding liabilities at N2.19 billion, followed by Bwari with N1.49 billion and Kwali at N1.46 billion. Other councils, including Gwagwalada, Kuje, and Abaji, accounted for N1.01 billion, N892.2 million, and N593.8 million, respectively.

The Auditor-General's report also criticized the councils for inadequate maintenance of their fixed asset registers. For instance, Gwagwalada Area Council was cited for failing to properly record and update non-current assets valued at N336 million, raising concerns about potential asset loss.

In addition to these financial discrepancies, the report questioned the N24.87 billion spent by the councils on personnel, overheads, and capital expenditure in 2021. The breakdown revealed that AMAC spent N5.03 billion, while Gwagwalada, Kuje, Kwali, Bwari, and Abaji followed with expenditures ranging from N3.71 billion to N4.66 billion. The committee is demanding explanations and supporting documents for these expenditures, particularly regarding capital projects.

Bamidele Salam, Chairman of the Public Accounts Committee, expressed frustration over the councils' repeated failure to comply with requests for documentation and attendance. He emphasized that the last scheduled appearance was a date the councils themselves had requested. Salam stated, "The committee has therefore decided to issue summons to the Directors of Personnel Management and Finance of these local governments, including their Heads of Audit, to appear without fail on Wednesday, October 14."

The committee's concerns extend beyond the 2021 audit, as it has also noted issues in the audit reports for 2022 and part of 2023. These include alleged understatement of Internally Generated Revenue, unauthorized asset disposal, and non-remittance of withholding tax. Furthermore, the councils have not submitted their financial accounts for 2023, 2024, and 2025, violating statutory requirements.

Under the provisions of the 1999 Constitution, the Public Accounts Committee holds the authority to examine public institutions' audited accounts and investigate any financial irregularities identified by the Auditor-General. The latest summons aims to compel the relevant officials to provide necessary explanations and documentation regarding the outstanding audit queries, reinforcing the need for transparency and accountability in the management of public funds.

Sources

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