Abuja: Nigeria’s Accountant General of the Federation (AGF) has highlighted legacy asset management as a key strategy to enhance the country’s fiscal position and reduce budgetary pressures. At a sensitization retreat with Directors of Finance and Accounts (DFAs) and Directors of Internal Audit (DIAs) of Ministries, Departments, and Agencies (MDAs) in Abuja, Accountant General Oluwatoyin Madein emphasized the importance of cataloging and valuing legacy assets to unlock their potential value.
According to Voice of Nigeria, the AGF’s office plans to enforce compliance and impose sanctions on non-compliant MDAs. Despite adopting International Public Sector Accounting Standards (IPSAS) for accrual accounting eight years ago, Nigeria’s 2021 consolidated financial statement reveals a significant negative net asset position of N39 trillion. Dr. Madein confirmed this figure at the retreat, underscoring the need for a holistic approach to fiscal management to ensure transparency and accountability.
The AGF noted tha
t many legacy assets have yet to be recognized and recorded, contributing to the negative net asset position. She urged MDAs to expedite the rendition of these assets to improve the timeliness and accuracy of financial statements. The Office of the Accountant General plays a crucial role in managing federal finances, including revenue disbursements, payments, asset acquisitions, and the preparation of financial statements.
The AGF’s office is currently in the process of collating national assets owned by the Federal Government. The goal is to complete this inventory by December 24, 2024, and include these assets in the annual financial statements. At present, Nigeria has N33 trillion in negative net assets, but the AGF expressed confidence that the ongoing exercise would lead to a positive net asset position.
The workshop, conducted in collaboration with the Ministry of Finance Incorporated (MOFI), aims to equip participants with the skills needed to identify, enumerate, and establish government-owned asset
s, ultimately enhancing the nation’s accounting records.