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Accountant-General of the Federation, Oluwatoyin Madein
The Federal Government has threatened to sanction Ministries, Departments, and Agencies for non-compliance as it announced plans to address Nigeria’s N39tn negative net asset balance by establishing a comprehensive National Assets Register.
The Accountant-General of the Federation, Dr. Oluwatoyin Madein, said this on Tuesday at a one-day sensitisation workshop in Abuja aimed at improving asset documentation among MDAs
Themed “Legacy Assets Rendition and Preparation of Stand-Alone Financial Statements by MDAs,” the event gathered finance directors and other senior financial officers to discuss strategies for accurately cataloguing the nation’s assets.
In Accounting, a negative net asset position means that total liabilities exceed total assets.
Madein explained that Nigeria’s apparent surplus of liabilities over assets stems from a lack of comprehensive data on federal assets.
“Consequently, we still have huge negative net assets in our 2021 consolidated financial statements which stood at N39tn,” she said.
Despite adopting the International Public Sector Accounting Standards accrual basis in 2016, numerous assets remain unrecorded, leading to the reported N39tn negative net asset in the 2021 consolidated financial statements.
She noted that slow asset reporting from MDAs has hindered the accuracy and timeliness of these statements, affecting efforts to correct the asset deficit.
To address this, Madein announced that the National Assets Register will document all government-owned assets, from buildings and land to roads, hospitals, schools, and equipment.
This register is critical, she said, as it will provide transparent financial statements needed by international donors, investors, and economic stakeholders interested in Nigeria.
She said, “We need to take a good inventory of these assets. The financial statement the federal government gives must be accurate, comparable and useful.”
MDAs have been given a compliance deadline of December 31, 2024, to submit stand-alone financial statements, including statements of financial position, financial performance, and cash flows.
“It’s an annual thing, but for now, because it has been due for some time, and it was observed that some MDAs have not been able to render, that is exactly why we are here, to come together in this workshop to discuss on the way forward.
“So, it is expected that after this workshop, we will go back and submit the inventory of assets, which will be evaluated and placed in the financial statement on or before 31st December 2024,” she said.
The Office of the Accountant-General emphasised that non-complying MDAs may face sanctions.
She said, “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. By adhering to these directives, MDAs can contribute meaningfully to the national interest while avoiding any penalties associated with non-compliance.
“The strategic importance of legacy asset rendition cannot be overstated. Unfortunately, the pace of rendition by Ministries, Departments, and Agencies 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.”
During the workshop, the Executive Director of the Ministry of Finance Incorporated, Mrs Oluwakemi Owonubi, highlighted the initiative’s importance, saying it would provide a clearer picture of federal assets and help transform Nigeria’s net liabilities into positive net assets.
