….Threatens Sanctions on MDAs Postponing Renditions.
Barbara Bako, Abuja.
The Federal Government has announced N39trn negative net asset position as many legacy assets are yet to be recognized, measured and uploaded.
The negative asset position came after its adoption of the International Public Sector Accounting Standards (IPSAS) since 2016.
The Accountant General of the Federation, Mrs Oluwatoyin made the reveal on Tuesday in Abuja while giving her keynote address at the sensitization retreat with Directors of Finance, Accounts and Internal Audits.
The country’s financial management practices must be changed immediately in light of the worsening fiscal crisis, which is highlighted by the negative net asset position.
In light of the sluggish adoption of the IPSAS and the inaccurate reporting of government assets, the AGF stated that this is a critical factor exacerbating Nigeria’s fiscal challenges.
The AGF claims that many Ministries, Departments, and Agencies (MDAs) have been slow to report legacy assets, which has delayed important financial reporting and hampered attempts to stabilise the nation’s fiscal outlook, even though the government has made an effort to adhere to IPSAS standards.
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.
Madein demanded that the legacy asset reporting delay, which has resulted in the underreporting of government resources, be addressed immediately.
The AGF warns that sanctions will be carried out on MDAs that refuse to act quickly to identify, value, and upload these assets into the National Assets Register.
She said, “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.
“Legacy asset management represents a pivotal tool for strengthening our fiscal position and alleviating our budgetary pressures.
“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.
“The AGF’s office will initiate measures to enforce compliance. Sanctions will be applied to non- complying MDAs that continue to delay these critical renditions.
“By adhering to these directives, MDAs can contribute meaningfully to the national interest while avoiding any penalties associated with non-compliance.”
The AGF explained the strategic significance of legacy asset management, pointing out that Nigeria could generate significant revenue, ease debt pressures, and open the door to greater fiscal stability by appropriately valuing and employing these underreported resources.
She noted a number of important advantages of effectively managing legacy assets, which may be essential in resolving Nigeria’s financial difficulties.
According to her, the government could create the money required to pay off both internal and foreign debt by leveraging or monetising underperforming assets, which would relieve some of the strain on Nigeria’s already tight budget.
READ ALSO: Tinubu promotes acting chief of army staff to lieutenant general
She added that efficient asset management could lead to better utilization of public property, providing additional revenue streams to the government, adding that more rigorous process of asset rendition will foster greater accountability and transparency in public financial management, helping to rebuild trust in government institutions.
This financial imbalance has far-reaching implications, especially as the country faces high inflation, growing debt obligations, and a challenging global economic environment.
The government has made fiscal reform a top priority, and one of the most important tools for changing the financial tide is asset management.
Madein also stressed how crucial it is to implement the Stand-Alone Government-wide Public Financial Statements (GPFS) in accordance with IPSAS in order to increase transparency and restore fiscal health.
Independent financial reporting, she said, will not only give a better picture of the government’s financial situation but also enable decision-makers to hold public officials accountable and allocate resources more wisely.
