Jeffrey Adaralegbe, Nigeria
According to the Federation’s Accountant General, Mrs. Oluwatoyin Madein, who gave the keynote address at the sensitization retreat with Directors of Finance, Accounts, and Internal Audits on Tuesday 5th Novermber, 2024 in Abuja, the Federal Government is facing a concerning N39 Trillion Liability net asset position as a result of inadequate implementation of the International Public Sector Accounting Standards.
Nigeria has not adequately catalogued, valued, or included many of its legacy assets—such as government-owned buildings, infrastructure, and other long-term properties—in national financial reports since it first adopted IPSAS accrual accounting in January 2016.
Consequently, the financial statements of Nigeria still show a large deficit, with the negative net assets as of 2021 totaling an astounding N39 trillion.
The nation’s fiscal crisis is getting worse, and the negative net asset position emphasizes how urgently the nation’s financial management procedures need to change.
In light of the sluggish adoption of the International Public Sector Accounting Standards (IPSAS) and the inaccurate reporting of government assets, the AGF made these remarks.
A major contributing factor to Nigeria’s financial difficulties, according to Madein, is the improper identification and assessment of legacy assets.
If properly accounted for, she said, these long-term government assets could much reduce the enormous financial disparity and give a more realistic view of the country’s actual financial situation.
The AGF claims that many Ministries, Departments, and Agencies (MDAs) have been slow to report legacy assets, impairing efforts to stabilize the nation’s fiscal outlook and delaying important financial reporting, even though the government has made an effort to adhere to IPSAS standards.
Madein urged immediate action to address the legacy asset reporting delay, which has resulted in the underreporting of government resources, noting that the nation’s financial future is at stake.
MDAs must move swiftly to locate, appraise, and enter these assets into the National Assets Register, she underlined. If they don’t, there will be consequences, she said.
She stated that it is impossible to exaggerate the strategic significance of legacy asset rendition. Ministries, Departments, and Agencies (MDAs) have, regrettably, been rendering at a dismal rate.
The consolidated financial statements’ timeliness and accuracy are hampered by this delay, which also drastically affects our capacity to resolve the net asset deficit. As a result, MDAs are encouraged to move quickly to complete the rendition of legacy assets.
“Legacy asset management represents a pivotal tool for strengthening our fiscal position and alleviating our budgetary pressures.
“The office of the AGF will take action to ensure adherence. MDAs that continue to postpone these crucial renditions will be subjected to sanctions.
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