By Abdullahi Muhammad
Abuja
To enhance transparency and accountability in public finance, federal, states and local governments have started the implementation of a process that would lead to full disclosure of government financial transactions at all levels.
The three tiers of government are making efforts to implement the International Public Sector Accounting Standards (IPSAS) Accrual Basis of accounting in Nigeria.
When the full implantation occurs, it will improve the quality of general purpose reporting by public sector entities, leading to better informed resource allocation decisions by government, thereby increasing transparency and accountability.
As a part of the implementation policy, the federal, states and local government public finance managers converged on Abuja yesterday for a two-day national workshop organized by the FAAC sub-committee on IPSAS implementation.
Delivering her keynote address at the workshop, the Minister of Finance, Mrs. Kemi Adeosun, noted that politically when “IPSAS is implemented effectively, it will increase disclosure in accounting reports thus increasing accountability, it will increase transparency emanating from full disclosure of government financial transactions, provide the executive and legislature the basis for their decisions on allocating resources and improve credibility and compliance with international best practices.”
Economically she said, “IPSAS will ensure a holistic reporting of government financial transactions and positions; improve service delivery through value for money, enhance public-private partnership, build confidence in donour and lending agencies, improve competiveness in global market place and increase cross-border trade and foreign direct investment.”
She assured that the financial statements of government will henceforth provide full information and absolute disclosure of material elements in public expenditure.”