With an emphasis on determining the true value of the assets for fiscal planning, the federal government has started the process of carrying out an exhaustive assets inventory in order to efficiently profile, assess, and register all national assets.
With the execution of the assets register program, the government hopes to reverse Nigeria’s massive negative net assets, which totaled N39 trillion in its 2021 consolidated financial statements. Many legacy assets have not yet been identified, measured, or uploaded, even after the International Public Sector Accounting Standards (IPSAS) accrual accounting was adopted on January 1, 2016.
Oluwatoyin Madein, the federation’s accountant-general, stated that the government has to manage its finances holistically, guaranteeing accountability and transparency in its financial reporting.
The MDAs’ dismal rate of asset rendition, according to the AGF, has caused a delay that now impairs the consolidated financial statements’ timeliness and accuracy and has a major influence on the country’s capacity to address the net asset imbalance. She called on departments, agencies, and ministries to move quickly to complete the rendition of historic assets.
By methodically cataloguing and valuing legacy assets—long-term resources that have frequently been disregarded—MDAs can uncover significant value that would otherwise remain dormant, she added. “Legacy asset management represents a pivotal tool for strengthening our fiscal position and alleviating our budgetary pressures,” she said.
According to Madein, non-compliant MDAs who keep delaying the crucial renditions would face penalties. MDAs are required to make a significant contribution to the national interest by following the guidelines and avoiding the penalties that come with non-compliance. According to the AGF, her office will take action to ensure compliance.
There will be numerous advantages to the anticipated efficient legacy asset management. By assessing the state and use of current assets, Madein and the Ministry of Finance Incorporated (MOFI) said the action will assist find prospects for better use or liquidation, producing much-needed cash.
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According to a MOFI representative, listing assets will increase their visibility and valuation while lowering the negative liability.
The rationale is to relieve pressure on our fiscal budget by using the money from the monetization of underperforming assets to pay down debt.
According to the administration, legacy asset rendition will ensure that assets are kept and used in the public interest by encouraging a culture of accountability among public officials. Madein said, “We can boost economic activity and create job opportunities by revitalising and effectively managing legacy assets, thereby contributing to national growth.”
Independent A clear and thorough picture of the government’s financial situation is provided by GPFS, enabling stakeholders to evaluate the entity’s financial health on their own.
