The Federal Government of Nigeria has consolidated its balance sheet to represent the true worth of all its assets, marking a watershed moment in the country’s financial management.
This action follows the introduction of the National Electronic Asset Register, aimed at enhancing financial openness, promoting investment, and easing access to credit.
During the launch event in Abuja, the Minister of State for Finance, Doris Uzoka-Anite, remarked that this initiative marks a pivotal moment for Nigeria’s economy, as it establishes a detailed inventory of the country’s assets and creates fresh avenues for economic advancement.
“Raising money will no longer be a problem for us. With this, our debt sustainability issues will be significantly addressed. We can now begin to make projections as to all sorts of revenues to be expected from these assets,” she said.
To further improve financial accountability, the government also released a compendium on Federal Account Revenue Allocation to Federal, State, and Local Governments from January 2020 to December 2023.
Uzoka-Anite clarified that the government can obtain loans, draw in investors, and increase liquidity by leveraging the assets listed in the register.
“We will release some of the potential that has been locked down and trapped within these assets. Everybody here in this room knows that when you have an asset, the next thing you do is mortgage it, use it as collateral to raise more money, especially fixed assets,” she added.
The minister emphasized that Nigeria’s historically negative asset balance had created the impression of high liabilities, but this initiative now proves that the country has substantial assets that can be effectively utilized.
“Over time, we have seen a huge negative asset balance, meaning that our liabilities are high. So, we don’t even have any shareholders’ funds or equity contributions to the balance sheet. Then you wonder, how has the country been surviving? It tells us that we have been surviving because we have a lot of assets, because if you don’t have assets, there is no way we would survive as an entity,” she stated.
The Accountant General of the Federation, Oluwatoyin Madein, commended the initiative, noting that it will help policymakers and government agencies track, manage, and optimize public assets.
“Assets are the backbone of any economy. For any government, public assets are a significant part of its balance sheet, influencing not just the financial position but also its ability to deliver services to the citizens,” she said.
In addition, Madein emphasizes the importance of asset management to ensure that all government assets, infrastructure, real estate and financial assets are registered with accuracy and effectively used. It is impossible to appreciate the importance of transparency in asset management.
It guarantees that we are aware of the assets we possess, their whereabouts, and their current uses.
“This is a matter of public trust, not just an accounting exercise,” she said.
With the launch of the National Electronic Asset Register, the government has taken a major step towards improving financial planning, unlocking the value of public assets, and positioning Nigeria for greater economic stability and investment opportunities.
By consolidating its balance sheet and introducing real-time asset tracking, Nigeria is now better equipped to manage its financial resources, reduce liquidity constraints, and enhance national development efforts.
