AGF Madein Targets December 2024 For National Assets’ Inventory, Laments FG’s 39Trn Negative Net

• To sanction Errant MDAs

BY EDMOND ODOK – Disturbed by Nigeria’s negative net assets that stand at N39 trillion as at 2021 figures, the Federal Government is targeting December 2024 to produce a comprehensive register for all national assets.

This is as the Accountant General of the Federation (AGF), Dr Oluwatoyin Madein says the country needs a holistic approach to fiscal management, as well as transparency and accountability in financial reporting to successfully navigate through the current challenging economic situation.

For her, in an economic landscape distorted by rising inflation and significant external debts, Nigeria cannot slack in implementing the International Public Sector Accounting Standards (IPSAS) as one of the strategic drivers of its economic recovery measures.

The AGF, who spoke at the sensitization Retreat with DFAS and DIAs with the theme: “National Assets Register and the Strategic Importance of Legacy Asset Rendition in the Implementation of IPSAS Accrual basis Accounting in Nigeria”, lamented that despite adopting IPSAS accrual accounting since 1st January 2016, “many legacy assets are yet to be recognized, measured and uploaded”.

But hinting that the government is ready to address noticeable lapses having resumed collating the value of Nigeria’s assets for efficient public finance accounting purposes, Madein said; “Currently, the Office is in the process of collating the national assets that the federal government owns. And that is exactly why we are here; to discuss more on how to do it and achieve that before the end of the year

“So, it is expected that after this workshop, we will all go back and submit the inventory of assets, which will be evaluated and placed in the financial statement on or before December 24, 2024”.

She further highlighted the need for Legacy Asset Rendition through a strategic approach, saying; ‘The strategic importance of legacy asset rendition cannot be overstated. Unfortunately, the pace of rendition by Ministries, Departments, and Agencies (MDAs) has been disappointingly slow.

“This delay hampers the timeliness and accuracy of the consolidated financial statements and significantly impacts our ability to address the net asset deficit as expected MDAs are therefore urged to expedite action on the rendition of legacy assets”

The AGF described legacy asset management as a pivotal tool for strengthening fiscal position and alleviating budgetary pressures, stressing that; “By systematically cataloging and valuing legacy assets-long-term resources that have often been overlooked- MDAs can unlock substantial value that would otherwise remain dormant.”

However, Madein warned that the AGF’s office would initiate measures to enforce compliance with sanctions imposed on non-complying MDAs that continue to delay these critical renditions.

According to her; “By adhering to these directives, MDAs can contribute meaningfully to the national interest while avoiding any penalties associated with non-compliance”.

Overall, the AGF said benefits derivable from effective legacy asset management include; Asset Optimization, Debt Management, Increased Accountability, and Economic Growth.

Also, she explained that to align with IPSAS, preparing Stand- Alone GPFS is vital for enhancing transparency and accountability in financial reporting, adding; “A Stand- Alone GPFS is defined as financial statements that are prepared independently by an entity, focusing solely on its financial position, performance, and cash flows.”

Additionally, she said dedicated framework for financial reporting would serve several key purposes including Clarity and Comprehensiveness; Informed Decision-Making; and Enhanced Accountability.