In a landmark move to bolster financial management and transparency, the Federal Government of Nigeria has unveiled the National Electronic Assets Register (NEAR), a digital platform designed to track and manage government-owned assets across various ministries, departments, and agencies (MDAs). This initiative aims to consolidate all public assets into a unified system, ensuring accurate financial reporting and aligning with international standards.

A Leap Towards Comprehensive Asset Management

The launch of NEAR addresses a longstanding challenge in Nigeria’s public sector: the absence of a consolidated record of government assets. Historically, this gap has led to discrepancies in financial statements, often reflecting negative liabilities not due to a lack of assets but because of inadequate documentation. Mrs. Oluwatoyin Madein, the Accountant-General of the Federation, emphasized that while assets acquired since 2016 have been recorded, many older assets remain unaccounted for. NEAR aims to bridge this gap by incorporating all government assets, including infrastructure, military facilities, biological reserves, and mineral resources, into a comprehensive digital database.​

Implications for Nigeria’s Financial Health

The absence of a unified asset register has contributed to Nigeria’s negative net asset position. As of 2021, the country’s consolidated financial statements indicated liabilities amounting to N39 trillion. This negative balance sheet has implications for debt sustainability and the nation’s creditworthiness. By accurately documenting and valuing its assets through NEAR, Nigeria can present a more accurate financial position, potentially improving its debt profile and attracting foreign investment. Minister of State for Finance, Doris Uzoka-Anite, highlighted that the register would allow the government to quantify its assets, value them, and include them in the national balance sheet, which is crucial for enhancing debt sustainability and fostering economic growth.

Enhancing Economic Opportunities

Beyond improving financial reporting, NEAR opens avenues for economic development. With a clear record of assets, the government can leverage them to secure funding for development projects. For instance, documented land with secure titles can serve as collateral for raising funds. Similarly, government-owned properties and resources can be utilized to issue asset-backed financial instruments, providing alternative funding sources for infrastructure and other capital-intensive projects. This strategic asset management can stimulate economic activities and contribute to national development.​

Alignment with International Standards

The implementation of NEAR aligns with global best practices in public financial management. By adopting such a system, Nigeria demonstrates its commitment to transparency, accountability, and efficient resource management. This move is expected to strengthen the country’s reputation among international financial institutions and investors, potentially leading to better credit ratings and increased foreign direct investment. The Acting Director of Asset Tracking and Management at the Office of the Accountant-General of the Federation, Mrs. Mbat Josephine, noted that NEAR would function as a central repository of all government assets, ensuring real-time updates and complete transparency.​

Challenges and the Way Forward

While the launch of NEAR is a significant milestone, its success hinges on the active participation of all MDAs. The government has set a deadline of December 31st for MDAs to submit their asset data. Failure to comply may result in sanctions, underscoring the importance of collective effort in this initiative. Furthermore, continuous training and capacity-building programs will be essential to ensure that personnel across MDAs can effectively use the system, maintain accurate records, and uphold the integrity of the asset register. The Office of the Accountant General has been proactive in organizing workshops and training sessions to facilitate this transition.​

Conclusion

The National Electronic Assets Register represents a transformative step in Nigeria’s public financial management landscape. By consolidating and digitizing records of government-owned assets, the platform is set to enhance transparency, improve financial reporting, and unlock economic opportunities. As Nigeria continues on this path, the commitment of all stakeholders will be crucial to fully realizing the benefits of this initiative and ensuring sustainable national development.

This initiative aims to consolidate all public assets into a unified system, ensuring accurate financial reporting and aligning with international standards.