By Mercy Aikoye
The six Area Councils of the Federal Capital Territory (FCT) are facing possible sanctions from the House of Representatives Public Accounts Committee (PAC) over their failure to submit financial accounts for 2023, 2024 and 2025 and respond to outstanding audit queries.
The committee, which has been examining alleged financial irregularities involving the councils, has issued a seven-day final summons to key accounting officials of the six councils to appear before it on October 14, 2026.
The officials summoned are the Directors of Personnel Management and Finance and Heads of Audit of Abaji, Abuja Municipal Area Council (AMAC), Bwari, Gwagwalada, Kuje and Kwali Area Councils.
Chairman of the committee, Hon. Bamidele Salam, disclosed this while speaking with journalists in Abuja on Tuesday, saying the councils had repeatedly failed to honour invitations and provide documents required to resolve the audit queries.
Salam said the latest summons followed the failure of the six council chairmen to appear before the committee on September 22, despite having requested the date themselves.
“The last date of appearance of the Abuja Area Councils was September 22, 2026, which was a date they requested for and which was graciously granted by the committee. Yet, they failed to appear or send in any representation,” he said.
He warned that the officials would face consequences under the relevant service rules if they failed to honour the October 14 summons.
The committee’s investigation is based on audit reports covering the six FCT Area Councils, including the Annual Audit Report for the year ended December 31, 2021, which identified several financial irregularities.
The report placed outstanding liabilities of the councils at about N7.65 billion, arising from unremitted pension deductions, Pay As You Earn (PAYE), Value Added Tax (VAT), withholding tax and unpaid obligations to contractors.
AMAC recorded the highest liability at N2.19 billion, followed by Bwari with N1.49 billion and Kwali with N1.46 billion. Gwagwalada had N1.01 billion, Kuje N892.2 million and Abaji N593.8 million.
The committee is also demanding explanations and supporting documents relating to N24.87 billion spent by the six councils on personnel, overheads and capital expenditure in 2021.
Beyond the 2021 audit findings, Salam said the committee had uncovered additional concerns in the audit reports for 2022 and part of 2023, including alleged understatement of internally generated revenue, unauthorised disposal of assets, non-disclosure of statutory revenue and failure to remit withholding tax.
The committee also raised concerns over the management of fixed assets, with Gwagwalada specifically faulted over non-current assets valued at N336 million whose ledger records were reportedly not properly maintained or updated.
Salam said the failure of the councils to audit and submit their financial accounts for 2023, 2024 and 2025 was contrary to statutory requirements and raised further concerns about financial accountability at the area council level.
He stressed that public funds must be managed with transparency, accountability and prudence, warning that officials found culpable would be held responsible in accordance with the law.
The Public Accounts Committee derives its mandate from the 1999 Constitution, as amended, to examine audited public accounts and investigate financial irregularities identified by the Auditor-General.
The October 14 appearance is therefore expected to give the affected councils an opportunity to provide explanations and supporting documents on the outstanding audit queries or face further action by the committee.
