FG Establishes National Assets Register To Reverse N39trn Liabilities

The federal government has commenced the process of conducting thorough assets inventory for effective profiling, evaluation and registration of all national assets with a focus on establishing the real value of the assets for fiscal planning.

Nigeria currently has huge negative net assets in its 2021 consolidated financial statements which stood at N39 trillion, a liability the government now wants to upturn with implementation of the assets register policy. Despite adopting International Public Sector Accounting Standards (IPSAS) accrual accounting since 1st January 2016, many legacy assets are yet to be recognized, measured and uploaded.

Accountant-general of the federation Oluwatoyin Madein said the government must adopt a holistic approach to fiscal management, ensuring transparency and accountability in its financial reporting.

The AGF said the pace of asset rendition by the MDAs has been disappointingly slow, resulting in a delay that currently hampers the timeliness and accuracy of the consolidated financial statements and significantly impacts the nation’s ability to address the net asset deficit. She urged ministries, departments and agencies 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,” she said, adding that MDAs can unlock substantial value that would otherwise remain dormant by systematically cataloguing and valuing legacy assets-long-term resources that have often been overlooked.

Madein said sanctions will be applied to non-complying MDAs that continue to delay the critical renditions. By adhering to the directives, MDAs are expected to contribute meaningfully to the national interest while avoiding any penalties associated with non-compliance. The AGF said her office will initiate measures to enforce compliance.

The planned effective legacy asset management to yield many benefits. Both Madein and the Ministry of Finance Incorporated (MOFI) said the move would help to identify opportunities for better utilisation or liquidation, generating much-needed revenue by evaluating the usage and condition of existing assets.

Representative of MOFI said the assets enumeration will reduce the negative liability and improve assets visibility and valuation.

The explanation is that proceeds from the monetization of underperforming assets can be redirected towards debt servicing, alleviating pressure on our fiscal budget.

The government says legacy asset rendition would foster a culture of responsibility among public officials, ensuring that assets are maintained and utilised in the public interest. “By revitalising and effectively managing legacy assets, we can stimulate economic activity and create job opportunities, thereby contributing to national growth,” Madein stated.

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