The Accountant General of the Federation (AGF), Oluwatoyin Madein, yesterday decried the slow pace of legacy asset rendition by Ministries, Departments, and Agencies (MDAs) which has negatively impacted the federal government’s fiscal position.
Madein said the delay had resulted in huge negative net assets of N39 trillion in its 2021 Consolidated Financial Statements. A negative net asset position implies that total liabilities exceed total assets.
The AGF disclosed this at the opening of a one-day sensitisation workshop on Assets Rendition and Preparation of Stand-Alone Financial Statements by MDAs, with the theme, “National Assets Register and the Strategic Importance of Legacy Asset Rendition in the Implementation of IPSAS Accrual Basis Accounting in Nigeria” in Abuja.
She lamented that since the country adopted IPSAS accrual accounting on January 1, 2016, many legacy assets are yet to be recognised, measured, and uploaded to date, leading to huge negative net assets in its balance sheet.
She said, “Unfortunately, the pace of rendition by Ministries, Departments, and Agencies (MDAs) has been disappointingly slow” adding that the delay had continued to hamper the timeliness and accuracy of the consolidated financial statements and significantly impacted the federal government’s ability to address the net asset deficit as expected.
