Nigeria seeks to reverse N39trn negative assets – AGF
Omeiza Bilal
The Accountant General of the Federation (AGF), Dr. Oluwatoyin Madein, has disclosed that the country is contending with a huge negative net assets of N39 trillion.
In her keynote address at the sensitization Retreat at the one-day sensitization workshop for Directors of Finance and Accounts and Internal Auditors Tuesday in Abuja, the AGF also said that said assets are pivotal to strengthening the country’s fiscal position as well as alleviating its budgetary pressures.
According to her, 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 workshop had as its theme: National Assets Register & the Strategic Importance of Legacy Asset Rendition in the Implementation of IPSAS Accrual basis Accounting in Nigeria.
Madein 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.
“As we navigate through a challenging economic landscape marked by rising inflation and significant external debts, it is imperative that we adopt a holistic approach to fiscal management, ensuring transparency and accountability in our financial reporting.
The AGF further said the Office will initiate measures to enforce compliance. She further said that 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,” she added.
Highlighting the benefits of the scheme, Nigeria’s chief revenue officer said effective management will ensure asset optimization, debt management, increased accountability, and economic growth.
“Legacy asset rendition fosters a culture of responsibility among public officials, ensuring that assets are maintained and utilized in the public interest.
“By revitalizing and effectively managing legacy assets, we can stimulate economic activity and create job opportunities, thereby contributing to national growth,” she explained.
In her presentation, Executive Director at the Ministry of Finance Incorporated (MOFI), Ms Kemi Owonubi, said that a national asset register would help raise the value of Nigeria’s assets.
According to her, “Mofi’s focus though is on investment assets and with investment assets we always highlight that there are assets that have the potential to generate cash flows for the federal government, ability to generate investment income for the federal government.
“We will also be able to assign some market values to these assets so that not only knowing what the assets are we will be working together to assign value to those assets. Again it will boost that asset side of our balance sheet. At the end of the day the hope is to create a single window on all assets owned by the federal governments of Nigeria and the national assets register is a tool that will enhance the strategic oversight and management of the nation’s public wealth.”
