By Onu Okorie
The Accountant General of the Federation AGF Dr. Oluwatoyin Madein has said that it is imperative that Nigeria adopts a holistic approach to fiscal management, ensuring transparency and accountability in financial reporting.
This was part of the keynote address made at the sensitization Retreat with DFAS and DIAs held in Abuja yesterday.
With the theme: National Assets Register & the Strategic Importance of Legacy Asset Rendition in the Implementation of IPSAS Accrual basis Accounting in Nigeria, Dr Madein suggested that enhanced accountability with a focus on the individual entity, Stand-Alone GPFS fosters greater accountability among public.
“I welcome you to the critical issue of the implementation of the International Public Sector Accounting Standards (IPSAS) in Nigeria, and the strategic role of Legacy Assets in the first-Time adoption of IPSAS, as we navigate through a challenging economic landscape marked by rising inflation and significant external debts,” she said.
She said that the current Financial Position of Nigeria’s GPFS was adopted IPSAS accrual accounting with effect from 1™ January 2016 however till date many legacy assets are yet to be recognized, measured and uploaded.
She said that the country still have huge negative net assets in our 2021 consolidated financial statements which stood at 39 Trillion naira
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.
According to the AGF, “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.”
She said that 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.
And by adhering to these directives, MDAs can contribute meaningfully to the national interest while avoiding any penalties associated with non-compliance.
“Moreover, effective legacy asset management will yield the following benefits: Asset Optimization: By evaluating the usage and condition of existing assets, we can identify opportunities for better utilization or liquidation, generating much-needed revenue.
“Increased Accountability: Legacy asset rendition fosters a d of responsibility among public officials, ensuring that assets are maintained and utilized in the public interest.
“Economic zee: By revitalizing and effectively managing legacy assets, we can stimulate economic activity and create job opportunities, thereby contributing to national growth.”
The AGSF further explained that the significance of Stand-Alone GPFSIn alignment with the International Public Sector Accounting Standards (IPSAS), preparing Stand- Alone GPFS is vital for enhancing transparency and accountability in financial repddorting.
According to her, ” the 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.
“This dedicated framework for financial reporting serves several key purposes: Clarity and Comprehensiveness: Stand- Alone GPFS provides a clear and comprehensive view of the government’s financial position, allowing stakeholders to assess the entity’s financial health independently.
“Informed Decision-Making: By presenting financial information in a structured manner, it enhances the ability of decision-makers to evaluate the entity’s performance and make informed choices regarding resource allocation.” She stated.