Nigeria FCT Area Councils N100bn Infractions
Analysis based on 7 articles · First reported Feb 06, 2026 · Last updated Feb 07, 2026
The financial infractions by the FCT Area Councils, totaling over N100 billion, highlight significant governance and transparency issues within Nigeria's public administration. This event could negatively impact investor confidence in Nigeria's public sector financial management, potentially leading to increased perceived risk for investments in government-related projects or bonds.
The Nigeria — Auditor-General for the Federal Capital Territory Area Councils has indicted six FCT Area Councils (Nigeria — Abaji Area Council, Nigeria — Abuja, Nigeria — Bwari Area Council, Nigeria — Gwagwalada Area Council, Nigeria — Kuje Area Council, and Nigeria — Kwali, Nigeria) for financial infractions exceeding N100 billion. The audit report for the year ended December 31, 2021, revealed widespread cases of unremitted tax and VAT deductions, failure to update Fixed Asset Registers, and expenditures not properly accounted for. Outstanding liabilities amounted to N7.65 billion, including unremitted pension deductions, PAYE, VAT, and withholding taxes owed to the Nigeria — Nigeria Revenue Service, Nigeria — Nigeria Revenue Service, Pension Fund Administrators, and contractors. Additionally, N24.87 billion in expenditures for 2021 on personnel, overheads, and capital projects could not be fully accounted for, with 37% of capital project allocations lacking proper documentation. Audit findings for 2022 and part of 2023 also identified further violations such as understatement of Internally Generated Revenue, unauthorized asset disposal, and non-remittance of withholding tax. The Nigeria — House of Representatives (Nigeria) Public Accounts Committee, led by Bamidele Salam, has formally received the report and summoned the chairmen and finance directors of the six Area Councils to appear on February 11, 2026, to respond to the audit queries, warning of constitutional powers to compel their appearance if they fail to comply.
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