…To Sanction Defaulting MDAs On Financial Accounts Filing
The Accountant General of the Federation, Dr. Oluwatoyin Madein, has put Nigeria’s negative net assets at N39 trillion in 2021, adding that the Federal Government is currently making efforts to collate the value of the country’s national assets for efficient public finance accounting purposes.
Madein gave this hint on Tuesday in Abuja at a one-day sensitisation workshop on Assets Rendition and Preparation of Stand-Alone Financial Statements by Ministries, Departments and Agencies of Government with the theme ‘Legacy Assets Rendition and Preparation of Stand-Alone Financial Statements by MDAs’ held in Abuja.
She disclosed: “In terms of liability, currently, Nigeria has about N39 trillion that is negative net assets. However, that is net liability, which we have been compiling.”
According to her, the collation of the value of the nation’s assets is part of the Office’s statutory roles of collating financial information for the preparation of annual financial statements and part of the process is the valuation of assets, which is included in the annual financial statements.
The Accountant-General further clarified: “Currently, the Office is in the process of collating the national assets that the federal government owns. And that is exactly why we are here; to discuss more on how to do it and achieve that before the end of the year
“So, it is expected that after this workshop, we will all go back and submit the inventory of assets, which will be evaluated and placed in the financial statement on or before December 24, 2024”, she added.
Madein, who decried the slow pace of legacy asset rendition by Ministries, Departments, and Agencies (MDAs), which has negatively impacted the Federal Government’s fiscal position, lamented that the delay had resulted in huge negative net assets of N39 trillion in the government’s 2021 consolidated financial statements and constrained the Federal Government’s efforts to timely address the net asset deficit
She, therefore, charged the MDAs to expedite action on the rendition of legacy assets which represents a pivotal tool for strengthening the government’s fiscal position and alleviating budgetary pressures.
To address the lapses in the public finance system in terms of timely preparation of the financial statements, the AGF her office will initiate measures to enforce compliance and sanction non-complying MDAs that continue to delay these critical renditions.
Madein said that by adhering to these directives, MDAs can contribute meaningfully to national interest while avoiding any penalties associated with non-compliance, adding that to fast-track the process all MDAs must submit the inventory of their assets, which will be reflected in the December 31, 2024 financial statement.
She maintained that effective legacy asset management could help identify opportunities for better utilisation or liquidation, generating much-needed revenue while proceeds from the monetisation of underperforming assets can be redirected towards debt servicing, thereby alleviating pressure on fiscal budget, among other benefits.
Speaking at the workshop, the Executive Director, Ministry of Finance Incorporated (MoFI), Mrs. Kemi Owonubi, said that the net asset liability was not well represented in the asset side of the government’s accounts, adding that from the investment perspective, MOFI is looking to identifying, enumerating and establishing what the federal government owns.
She explained: “So if you look at the two sides of the balance sheet the liability side is very well represented because if we go to the DMO and we check the ministry of finance, we will get a number very quickly, but the asset is somewhat missing out and that’s one of the reasons why we’re having this engagement today and we have a negative net liability position.
“Between MoFI and the office of the accountant general, you’re looking at the totality of the assets of the federal government and this is where the assets register”, Owonubi added.
