The Federal Executive has threatened to sanction Ministries, Areas, and Businesses for non-compliance because it introduced plans to handle Nigeria’s N39tn destructive internet asset steadiness by means of forming a complete Nationwide Belongings Sign up.
The Accountant-Basic of the Federation, Dr. Oluwatoyin Madein, stated this on Tuesday at a one-day sensitisation workshop in Abuja geared toward making improvements to asset documentation amongst MDAs
Themed “Legacy Assets Rendition and Preparation of Stand-Alone Financial Statements by MDAs,” the development accrued finance administrators and alternative senior monetary officials to talk about methods for appropriately cataloguing the folk’s property.
In Accounting, a destructive internet asset place implies that general liabilities exceed general property.
Madein defined that Nigeria’s obvious surplus of liabilities over property stems from a inadequency of complete knowledge on federal property.
“Consequently, we still have huge negative net assets in our 2021 consolidated financial statements which stood at N39tn,” she stated.
Regardless of adopting the Global Crowd Sector Accounting Requirements accrual foundation in 2016, diverse property stay unrecorded, prominent to the reported N39tn destructive internet asset within the 2021 consolidated monetary statements.
She famous that sluggish asset reporting from MDAs has hindered the accuracy and timeliness of those statements, affecting efforts to proper the asset inadequency.
To handle this, Madein introduced that the Nationwide Belongings Sign up will file all government-owned property, from structures and land to roads, hospitals, colleges, and gear.
This sign in is important, she stated, as it’s going to grant clear monetary statements wanted by means of world donors, traders, and financial stakeholders fascinated about Nigeria.
She stated, “We need to take a good inventory of these assets. The financial statement the federal government gives must be accurate, comparable and useful.”
MDAs had been given a compliance cut-off date of December 31, 2024, to put up stand-alone monetary statements, together with statements of monetary place, monetary efficiency, and money flows.
“It’s an annual factor, however for now, as a result of it’s been due for at some point, and it used to be noticed that some MDAs have now not been in a position to render, this is precisely why we’re right here, to return in combination on this workshop to talk about at the means ahead.
“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 stated.
The Place of job of the Accountant-Basic emphasized that non-complying MDAs would possibly face sanctions.
She stated, “The AGF’s place of business will start up measures to implement compliance. Sanctions will probably be carried out to non-complying MDAs that proceed to prolong those crucial renditions. Via adhering to those directives, MDAs can give a contribution meaningfully to the nationwide hobby moment averting any consequences related to 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.”
Throughout the workshop, the Govt Director of the Ministry of Finance Included, Mrs Oluwakemi Owonubi, highlighted the initiative’s virtue, announcing it might grant a clearer image of federal property and backup turn out to be Nigeria’s internet liabilities into certain internet property.