House of Reps Summons FCT Council Chairmen Over N100bn Audit Query

• FCT Area Council Chairmen failed to appear before the House of Representatives Public Accounts Committee to address N100 billion in alleged financial infractions.
• The committee issued a final summons for October 14, 2026, to key council officials, threatening sanctions for non-compliance.
• An Auditor-General's report for 2021 identified N7.65 billion in unremitted liabilities, including pension, PAYE, VAT, and withholding taxes, across the six councils.
• The audit also questioned N24.87 billion in personnel, overhead, and capital expenditures by the councils in 2021 and highlighted issues with fixed asset register maintenance.
• Committee Chairman Bamidele Salam emphasized the councils' repeated failure to cooperate, leading to the escalated summons.

This development highlights the severe consequences for FCT Area Councils failing to address audit queries regarding unremitted taxes, pensions, and asset management.

The six Area Council Chairmen of the Federal Capital Territory (FCT) have once again failed to appear before the House of Representatives Public Accounts Committee, which is investigating alleged financial infractions amounting to approximately N100 billion. Despite having specifically requested and been granted an appearance date of September 22, 2026, the chairmen neither attended the session nor sent any representatives to address the committee's inquiries.

In response to this repeated non-compliance, the committee has issued a final seven-day summons. This directive mandates the Directors of Personnel Management and Finance, along with the Heads of Audit from all six FCT Area Councils, to appear before the legislative body on October 14, 2026. Failure to comply with this summons will result in sanctions being imposed in accordance with relevant service rules, underscoring the seriousness of the House of Reps FCT audit summons.

The core of the investigation stems from the Annual Audit Report of the Auditor-General for the Six FCT Area Councils for the year ending December 31, 2021. This critical document highlighted significant financial irregularities, including outstanding liabilities totaling approximately N7.65 billion. These liabilities encompass unremitted pension deductions, Pay As You Earn (PAYE) taxes, Value Added Tax (VAT), withholding tax, and unpaid obligations to various contractors.

The report provided a detailed breakdown of these unremitted funds across the FCT Area Councils: Abuja Municipal Area Council (AMAC) accounted for N2.19 billion, Bwari N1.49 billion, Kwali N1.46 billion, Gwagwalada N1.01 billion, Kuje N892.2 million, and Abaji N593.8 million. These funds were due for remittance to entities such as the Nigeria Revenue Service, FCT Inland Revenue Service, Pension Fund Administrators, and contractors. Furthermore, the Auditor-General's report also raised concerns regarding the councils' failure to properly maintain and update their fixed asset registers, citing Gwagwalada Area Council as an example where non-current assets valued at N336 million were inadequately recorded, a common issue among other FCT Area Councils.

Beyond the unremitted pension PAYE FCT councils' funds, the Auditor-General FCT 2021 report also scrutinizes N24.87 billion spent by the six councils in 2021 on personnel, overheads, and capital expenditure. 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. The committee is now demanding comprehensive explanations and supporting documentation for these expenditures, particularly focusing on the capital component, as part of its inquiry into the Nigeria FCT Area Councils financial infractions.

Chairman of the Public Accounts Committee, Bamidele Salam, addressed journalists in Abuja, emphasizing the persistent failure of the FCT council chairmen to honor invitations or provide the necessary documents required to resolve the audit queries. He reiterated that the September 22, 2026, appearance date was specifically requested by the councils themselves and granted by the committee, yet they still failed to engage.

This repeated disregard for legislative oversight has prompted the committee to escalate its measures, issuing direct summons to key financial and administrative personnel within the councils. The committee's firm stance indicates that any further non-compliance on October 14, 2026, will lead to severe consequences, aligning with established service rules and highlighting the critical role of the Bamidele Salam Public Accounts Committee in ensuring accountability.

The ongoing investigation into the FCT council chairmen N100bn audit query underscores significant challenges in financial governance and accountability within the Federal Capital Territory's local administration. The substantial sums involved, particularly the N7.65 billion in unremitted liabilities and the N24.87 billion in questioned expenditures, point to potential systemic weaknesses in financial management and oversight. These infractions, if left unaddressed, could severely impact public services and erode trust in local government institutions.

The Public Accounts Committee's determined pursuit of answers reflects the legislature's commitment to upholding financial transparency and ensuring that public funds are managed responsibly. The potential imposition of sanctions on council officials serves as a stark reminder of the legal and professional repercussions for failing to adhere to audit requirements and parliamentary summons. This development highlights the severe consequences for FCT Area Councils failing to address audit queries regarding unremitted taxes, pensions, and asset management.

This development highlights the severe consequences for FCT Area Councils failing to address audit queries regarding unremitted taxes, pensions, and asset management. Compliance officers should advise public sector clients to review their financial reporting and internal controls to prevent similar infractions and ensure timely responses to legislative oversight.

Source: Original reporting via Punch Newspapers