The federal government is facing a significant challenge with a negative net asset position of ₦39 trillion, following the adoption of the International Public Sector Accounting Standards (IPSAS). This was revealed by the Accountant General of the Federation, Mrs. Oluwatoyin Madein, during a sensitization retreat with Directors of Finance, Accounts, and Internal Audits in Abuja.
Since Nigeria implemented IPSAS accrual accounting in January 2016, many government-owned legacy assets such as buildings, infrastructure, and long-term properties have not been properly accounted for in national financial reports. This has resulted in a staggering negative net asset position of ₦39 trillion as of 2021.
The AGF emphasized the urgent need to address the slow pace of adopting IPSAS and accurately reporting government assets. She highlighted the importance of properly recognizing and measuring legacy assets to improve Nigeria’s fiscal health.
Madein urged Ministries, Departments, and Agencies (MDAs) to expedite the reporting of legacy assets to avoid sanctions. She emphasized that identifying and valuing these assets could help offset the financial gap and provide a more accurate picture of the nation’s financial position.
The AGF stressed the strategic importance of legacy asset management, stating that efficiently utilizing underreported resources could generate revenue, reduce debt pressures, and promote fiscal stability. By enforcing compliance with legacy asset reporting and adopting Stand-Alone Government-wide Public Financial Statements, Nigeria aims to improve transparency, accountability, and financial management practices.