The Federal Government has announced plans to establish a National Assets Register to address Nigeria’s N39 trillion negative net asset balance, warning Ministries, Departments, and Agencies (MDAs) of sanctions for non-compliance. The Accountant-General of the Federation, Dr. Oluwatoyin Madein, revealed the plan on Tuesday at a sensitization workshop in Abuja, which focused on improving asset documentation among MDAs.

The event, themed “Legacy Assets Rendition and Preparation of Stand-Alone Financial Statements by MDAs,” brought together senior finance officials to strategize on accurately cataloguing the nation’s assets. The need for the register, according to Madein, stems from Nigeria’s current negative net asset position, where liabilities exceed recorded assets due to incomplete data.

Madein explained that while Nigeria adopted International Public Sector Accounting Standards in 2016, many government assets remain unrecorded, contributing to a reported N39 trillion asset deficit in the 2021 consolidated financial statements. She emphasized that delayed asset reporting by MDAs has hindered the accuracy of these statements, stressing that the new register will include government-owned buildings, land, roads, hospitals, schools, and equipment.

“The financial statement the federal government gives must be accurate, comparable, and useful,” she said, adding that transparency in assets is crucial for international donors and investors.

MDAs are required to submit stand-alone financial statements, detailing financial position and performance, by December 31, 2024. Madein warned that sanctions would be applied to agencies that fail to comply, as the Office of the Accountant-General is focused on enforcing timely submission.

Mrs. Oluwakemi Owonubi, Executive Director of the Ministry of Finance Incorporated, underscored the initiative’s importance, noting that accurate asset documentation could help transform Nigeria’s net liabilities into positive net assets.