The Federal Government has issued a strong warning to Ministries, Departments, and Agencies that are delaying the reporting of assets, which has contributed to Nigeria’s alarming N39trn negative net asset position.
This figure emerged following Nigeria’s adoption of the International Public Sector Accounting Standards.
The Accountant General of the Federation, Mrs. Oluwatoyin Madein, revealed this in Abuja on Tuesday during a sensitization retreat for Directors of Finance, Accounts, and Internal Audits.
The AGF emphasized the importance of categorizing and assigning value to these assets in order to portray Nigeria’s financial status accurately and improve its fiscal prospects.
Madein cautioned that there would be consequences for ongoing delays in asset rendition.
She said, “The significance of completing legacy asset rendition should not be underestimated.”
“The lack of speed from MDAs hinders the precision of the consolidated financial statements and affects our capacity to deal with the net asset shortfall.”
She explained that effectively managing existing assets could bridge the gap in Nigeria’s budget and give a true reflection of the country’s financial status.
“Through recognizing, assessing, and incorporating these unreported assets into financial statements, Nigeria has the potential to release considerable value, which could alleviate budget constraints, produce extra income, and support the repayment of domestic and international debts.”
The AGF emphasized that efficient asset management has wider benefits such as generating revenue and promoting transparency and accountability in public financial management.
She noted that this method could assist in rebuilding confidence in government organizations, especially during a period of high inflation, increasing debt, and a difficult global economic situation in Nigeria.
Madein also suggested implementing Stand-Alone Government-wide Public Financial Statements (GPFS) to improve transparency.
This autonomous reporting process, in accordance with IPSAS guidelines, would offer a thorough perspective on the government’s financial status, deemed crucial for making informed choices and enhancing accountability.
As the Federal Government focuses on fiscal reform, Madein’s urging of MDAs underscores the importance of addressing Nigeria’s negative net asset position to help with its economic recovery and enhance financial stability.
