Uche Usim, Abuja
A financial expert and Principal Consultant of Double T Consult, Mr. Abidemi Olusola Ajao, has raised the alarm over Nigeria’s non-compliance with the International Public Sector Accounting Standards (IPSAS), saying the horrible development poses serious threats to the nation’s anti-corruption war.
Speaking yesterday at the opening of a three-day training programme in Abuja organised by Double T Consultants, in collaboration with the Standards Organisation of Nigeria (SON), Ajao said most nations, including some developing ones, have already keyed into the IPSAS window in their accounting and financial reporting systems.
He warned that the risks associated with non-compliance could jeopardise the country’s public financial and accounting systems, particularly in terms of transparency in public transactions.
He emphasised the need for uniformity in the preparation of financial statements to reflect global standards.
Ajao urged government at all levels to ensure adequate training for personnel in their various finance and accounts departments, stressing that the gains of IPSAS were countless.
Recall that the Federal Executive Council (FEC), at its meeting on July 28, 2010, had approved Nigeria’s adoption of the provisions of International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standard (IPSAS) for private and sectors public respectively.
Consequently, the Federation Account Allocation Committee (FAAC) at its meeting held on June 13, 2011, had set up a sub-committee to provide a roadmap for the implementation of IPSAS in the three tiers of government in Nigeria.
Following its adoption by the Federal Government in 2016, it became mandatory for MDAs to adopt IPSAS as the only approved form of financial reporting at the three tires of government.