The Federal Authorities has threatened to sanction Ministries, Departments, and Companies for non-compliance because it introduced plans to deal with Nigeria’s N39tn detrimental web asset stability by establishing a complete Nationwide Belongings Register.
The Accountant-Basic of the Federation, Dr. Oluwatoyin Madein, stated this on Tuesday at a one-day sensitisation workshop in Abuja aimed toward bettering asset documentation amongst MDAs
Themed “Legacy Belongings Rendition and Preparation of Stand-Alone Monetary Statements by MDAs,” the occasion gathered finance administrators and different senior monetary officers to debate methods for precisely cataloguing the nation’s property.
In Accounting, a detrimental web asset place implies that whole liabilities exceed whole property.
Madein defined that Nigeria’s obvious surplus of liabilities over property stems from an absence of complete knowledge on federal property.
“Consequently, we nonetheless have big detrimental web property in our 2021 consolidated monetary statements which stood at N39tn,” she stated.
Regardless of adopting the Worldwide Public Sector Accounting Requirements accrual foundation in 2016, quite a few property stay unrecorded, resulting in the reported N39tn detrimental web asset within the 2021 consolidated monetary statements.
She famous that gradual asset reporting from MDAs has hindered the accuracy and timeliness of those statements, affecting efforts to right the asset deficit.
To deal with this, Madein introduced that the Nationwide Belongings Register will doc all government-owned property, from buildings and land to roads, hospitals, faculties, and gear.
This register is vital, she stated, as it can present clear monetary statements wanted by worldwide donors, buyers, and financial stakeholders occupied with Nigeria.
She stated, “We have to take a superb stock of those property. The monetary assertion the federal authorities provides should be correct, comparable and helpful.”
MDAs have been given a compliance deadline of December 31, 2024, to submit stand-alone monetary statements, together with statements of economic place, monetary efficiency, and money flows.
“It’s an annual factor, however for now, as a result of it has been due for a while, and it was noticed that some MDAs haven’t been in a position to render, that’s precisely why we’re right here, to return collectively on this workshop to debate on the best way ahead.
“So, it’s anticipated that after this workshop, we’ll return and submit the stock of property, which will likely be evaluated and positioned within the monetary assertion on or earlier than thirty first December 2024,” she stated.
The Workplace of the Accountant-Basic emphasised that non-complying MDAs could face sanctions.
She stated, “The AGF’s workplace will provoke measures to implement compliance. Sanctions will likely be utilized to non-complying MDAs that proceed to delay these vital renditions. By adhering to those directives, MDAs can contribute meaningfully to the nationwide curiosity whereas avoiding any penalties related to non-compliance.
“The strategic significance of legacy asset rendition can’t be overstated. Sadly, the tempo of rendition by Ministries, Departments, and Companies has been disappointingly gradual. This delay hampers the timeliness and accuracy of the consolidated monetary statements and considerably impacts our means to deal with the web asset deficit. As anticipated, MDAs are due to this fact urged to expedite motion on the rendition of legacy property.”
Through the workshop, the Government Director of the Ministry of Finance Integrated, Mrs Oluwakemi Owonubi, highlighted the initiative’s significance, saying it could present a clearer image of federal property and assist remodel Nigeria’s web liabilities into constructive web property.