{"id":125464,"date":"2026-02-06T19:03:53","date_gmt":"2026-02-06T18:03:53","guid":{"rendered":"https:\/\/pointblanknews.com\/pbn\/?p=125464"},"modified":"2026-02-06T19:03:53","modified_gmt":"2026-02-06T18:03:53","slug":"n100bn-financial-scandal-rocks-fct-area-councils-reps-summons-officials","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/news\/n100bn-financial-scandal-rocks-fct-area-councils-reps-summons-officials\/","title":{"rendered":"N100bn Financial Scandal Rocks FCT Area Councils, Reps Summons Officials"},"content":{"rendered":"<div style=\"text-align: justify;\">By Tracy Moses<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">A damning audit report submitted to the House of Representatives Public Accounts Committee (PAC) has indicted the six Area Councils in the Federal Capital Territory (FCT) over financial infractions totaling more than \u20a6100 billion.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">The councils\u2014Abaji, Abuja Municipal (AMAC), Bwari, Gwagwalada, Kuje, and Kwali, are accused of unremitted statutory deductions, poor asset management, and unaccounted expenditures.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">The scrutiny comes against a long-standing backdrop of fiscal mismanagement and weak accountability in local governments within Nigeria\u2019s capital territory. Historically, councils have struggled with revenue collection, proper financial record maintenance, and timely remittance of statutory deductions such as pension contributions, Pay-As-You-Earn (PAYE) taxes, and Value Added Tax (VAT).<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Over the years, various audit reports by the FCT Auditor-General and oversight bodies have repeatedly flagged lapses, including unauthorised asset disposals, underreporting of Internally Generated Revenue (IGR), and unaccounted expenditures.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Despite prior warnings and recommendations, corrective measures have been inconsistently implemented.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">The most recent audit covering the 2021 fiscal year highlights a surge in council expenditures on personnel, overheads, and capital projects without corresponding accountability, alongside missing financial submissions for 2023 through 2025. These findings prompted the House PAC to demand explanations and enforce financial discipline.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">According to the audit, the six councils recorded outstanding liabilities totaling \u20a67.65 billion as of December 31, 2021. These include unremitted pension deductions, PAYE taxes, VAT, withholding taxes, unpaid capital project obligations, and other statutory revenues due to the Nigeria Revenue Service (NRS), FCT Internal Revenue Service, Pension Fund Administrators, and contractors. Abuja Municipal Area Council (AMAC) had the highest liability of \u20a62.19 billion, followed by Bwari with \u20a61.49 billion, Kwali with \u20a61.46 billion, Gwagwalada with \u20a61.01 billion, Kuje with \u20a6892.2 million, and Abaji with \u20a6593.8 million.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">The Auditor-General also faulted the councils for failing to properly maintain and update their Fixed Asset Registers, a lapse which exposes public assets to loss and mismanagement. In Gwagwalada Area Council alone, non-current assets valued at \u20a6336 million were neither adequately documented nor updated, a weakness prevalent across all councils.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Further findings revealed that the six Area Councils incurred a total expenditure of \u20a624.87 billion in 2021 on personnel costs, overheads, and capital projects.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">This represented an 89 per cent increase (\u20a611.7 billion) over the 2020 expenditure, raising questions about financial oversight and accountability. AMAC spent \u20a65.03 billion, Gwagwalada \u20a64.66 billion, Kuje \u20a63.85 billion, Kwali \u20a63.84 billion, Bwari \u20a63.74 billion, and Abaji \u20a63.71 billion.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Audit reports for 2022 and parts of 2023 further uncovered multiple infractions, including understatement of IGR, unauthorised disposal of assets, non-disclosure of statutory revenues, and failure to remit withholding taxes to appropriate authorities.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Reacting to the report, Chairman of the House of Representatives Public Accounts Committee, Rep. Bamidele Salam, confirmed that the audit had been formally received and was under consideration by the Committee.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">He disclosed that three separate letters had been issued to the chairmen of the six councils and their respective Finance Directors, summoning them to appear before the Committee to respond to the audit queries. Rep. Salam warned that the officials had been given a final opportunity to appear on Wednesday, February 11, 2026, stressing that failure to honour the summons would compel the House to invoke its constitutional powers to order their arrest and ensure compliance.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">He also revealed that the councils were indicted for failing to audit and submit their financial accounts for the years 2023, 2024, and 2025, in violation of statutory requirements.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">\u201cPublic funds must be managed with transparency and prudence,\u201d Salam said, warning that any official found culpable would be held accountable in accordance with the law.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">The House PAC has made it clear: failure to comply with the summons will trigger constitutional powers to ensure accountability.<\/div>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content --><!-- AddThis Related Posts generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>By Tracy Moses A damning audit report submitted to the House of Representatives Public Accounts Committee (PAC) has indicted the six Area Councils in the Federal Capital Territory (FCT) over&hellip;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><!-- AddThis Related Posts generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":121999,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-125464","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - 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