₦100 BILLION AUDIT STORM: Reps Issue Final Ultimatum to FCT Councils as Sanctions Loom

• Repeated failure to honour legislative summons triggers seven-day deadline for finance directors and audit chiefs over outstanding liabilities, questionable expenditure and alleged financial irregularities

Nigeria’s public accountability system is facing another major test as the House of Representatives Public Accounts Committee (PAC) has issued a final seven-day summons to officials of the six Federal Capital Territory (FCT) Area Councils over unresolved audit queries involving approximately ₦100 billion.

The committee’s action follows the repeated failure of the six council chairmen to appear before the lawmakers to answer questions arising from financial irregularities flagged in the Auditor-General’s reports. The latest directive requires the councils’ Directors of Personnel Management and Finance, alongside their Heads of Audit, to appear before the committee on October 14, 2026, or face sanctions under the applicable service rules.

The development raises fresh concerns about financial accountability, transparency and compliance with statutory obligations in the administration of public funds at the local government level.

According to reports, the chairmen had requested September 22, 2026, for their appearance but failed to attend or send representatives. Committee Chairman Bamidele Salam said the repeated failure to honour invitations had frustrated efforts to obtain explanations and supporting documents needed to resolve the outstanding audit queries.

The affected councils are Abaji, Abuja Municipal Area Council (AMAC), Bwari, Gwagwalada, Kuje and Kwali.

₦7.65 Billion in Outstanding Liabilities Under Scrutiny

At the centre of the investigation are audit findings relating to the councils’ financial activities for the year ended December 31, 2021. The Auditor-General’s report identified approximately ₦7.65 billion in outstanding liabilities, including unremitted pension deductions, Pay As You Earn (PAYE) tax, Value Added Tax (VAT), withholding tax and unpaid obligations to contractors.

Abuja Municipal Area Council reportedly accounted for the largest share, with outstanding liabilities of ₦2.19 billion. Bwari followed with ₦1.49 billion, while Kwali recorded ₦1.46 billion. Gwagwalada had ₦1.01 billion, Kuje ₦892.2 million and Abaji ₦593.8 million.

These figures have placed the councils’ financial management practices under renewed scrutiny, particularly regarding the timely remittance of statutory deductions and settlement of obligations to relevant authorities, pension fund administrators and contractors.

The committee is also seeking explanations and supporting documentation for ₦24.87 billion reportedly spent by the six councils on personnel, overheads and capital expenditure in 2021. The expenditure figures are part of the audit issues requiring clarification, and the summons is intended to compel the responsible officials to provide the necessary records.

Asset Management and Revenue Reporting Raise Further Questions

Beyond outstanding liabilities and expenditure documentation, the audit report identified weaknesses in the maintenance and updating of fixed-asset registers.

Gwagwalada Area Council was specifically cited over non-current assets valued at ₦336 million whose ledger records were reportedly not properly maintained and updated. The Auditor-General warned that inadequate asset documentation could make it difficult to trace public assets if they were lost or misappropriated.

The committee has also raised concerns arising from audit reports covering 2022 and part of 2023. These include alleged understatement of internally generated revenue, unauthorised disposal of assets, non-disclosure of statutory revenue and failure to remit withholding tax to the appropriate authorities.

Another significant concern is the reported failure of the councils to audit and submit their financial accounts for 2023, 2024 and 2025 as required by law. If confirmed, such lapses could raise questions about the adequacy of financial reporting controls and compliance with statutory accountability requirements.

 Compliance Officers Face Heightened Accountability Pressure

The latest summons sends a strong message to public-sector finance departments, internal auditors and administrative officers responsible for maintaining government financial records. The ability to produce accurate accounts, reconcile expenditures, document statutory deductions and demonstrate that public funds have been properly managed remains central to effective financial governance.

For the affected councils, the October 14 appearance represents an opportunity to provide the records and explanations required to resolve the outstanding audit queries. Failure to comply could expose the responsible officials to disciplinary consequences under the applicable service rules.

The distinction between an audit query and a proven offence remains important. The financial concerns identified in the reports require examination, supporting evidence and appropriate due process before individual or institutional culpability can be established.

The ₦100 Billion Question: Who Will Account for Public Funds?

The unfolding investigation places renewed attention on the constitutional oversight role of the National Assembly in examining public accounts and pursuing irregularities identified by the Auditor-General.

For compliance professionals, the case highlights the importance of reliable financial reporting, proper asset registers, timely statutory remittances, complete audit trails and cooperation with lawful oversight processes. Persistent gaps in these areas can create financial, regulatory and reputational risks for public institutions.

As the October 14 deadline approaches, attention will focus on whether the summoned officials appear before the committee, submit the requested documentation and provide satisfactory explanations for the outstanding audit findings.

The central issue is not merely the size of the figures under review, but whether public institutions can demonstrate that public resources have been managed transparently, lawfully and in accordance with established financial controls.

For the six FCT Area Councils, the message is clear: the demand for answers has intensified, and the next stage of the inquiry could carry consequences for officials who fail to comply with the committee’s directive.