For First Time In 65 Years, Nigeria Consolidates Balance Sheet To Capture Value Of All Govt Assets

For the first time in 65 years, the federal government has consolidated its balance sheet to capture the real value of all its assets.

This is just as the government has assured Nigerians that raising funds for national development will no longer be a challenge following the launch of the National Electronic Asset Register.

The register which was unveiled on Thursday in Abuja, is expected to boost financial transparency, attract investments, and facilitate access to loans.

The federal government also launched the compendium on Federal Account Revenue Allocation to Federal, States, and Local Governments from January 2020 to December 2023.

Speaking at the unveiling ceremony, the Minister of State for Finance, Mrs Doris Uzoka-Anite, said that the initiative marks a turning point in the country’s financial management.

She explained that for the first time in 65 years, Nigeria now has a consolidated balance sheet that captures the true value of its assets.

Uzoka-Anite stated further that the register would help address liquidity issues by allowing the government to unlock trapped assets and use them as collateral to secure loans and attract investments

The Minister said, “Raising money will no longer be a problem for us. With this, our debt sustainability issues will be significantly addressed. With this, we can now begin to make projections as to all sorts of revenues to be expected from these assets.

“With this, we can now do balance sheet management. We can do financial derivatives on it. And we can do so much more.

“Over time, we have seen a huge negative asset balance, meaning that our liabilities are high. So, we don’t even have any shareholders’ funds or equity contributions to the balance sheet. Then you wonder, how has the country been surviving? It tells us that we have been surviving because we have a lot of assets—because if you don’t have assets, there is no way we would survive as an entity.”

The minister added, “We will release some of the potential that has been locked down and trapped within these assets. Everybody here in this room knows that when you have an asset, the next thing you do is mortgage it, use it as collateral to raise more money, especially fixed assets. So we can leverage the fixed assets to do so much more.

“And so, we will no longer have liquidity issues because it becomes a lot easier. Once you have land in this country and you have your financial documents, they are neat and secure. You save your money.

“The next thing is, whether you want to raise money for your business, or you want to raise any kind of money for anything, you just take your paper to the bank and you get money for your land. You borrow against the land and you are happy or assured that no matter what happens, you can meet your obligation with it.”

The minister commended the efforts of the Accountant General of the Federation, Oluwatoyin Madein, for ensuring the completion of the project, despite the complexities involved in cataloging assets across ministries, departments, and agencies nationwide.

In her speech, Madein noted that having a clear understanding of the assets the country owns and their conditions, will help to make more informed decisions about resource allocation, asset investments, and even explore Public-Private Partnerships for underutilized assets.

Madein said that the digital registry will provide real-time access to information about federal assets, including infrastructure, property, and financial holdings, enabling policymakers, government agencies, and the public to track their utilization.

According to her, “Assets are the backbone of any economy. For any government, public assets are a significant part of its balance sheet, influencing not just the financial position but also its ability to deliver services to the citizens. The importance of transparency in asset management cannot be overstated. It ensures that we know what assets we own, where they are located, and how they are being used. This is not just an accounting exercise; it is a matter of public trust.”

For First Time In 65 Years, Nigeria Consolidates Balance Sheet To Capture Value Of All Govt Assets is first published on The Whistler Newspaper