08 Aug 2012
By Tunde Sanni
The Federation Account Allocation Committee FAAC sub-committee on the roadmap for the adoption of the International Public Sector Accounting Standards (IPSAS) in Nigeria has promised to harmonise the budgetary system of the three tiers of government before the end of 2013.
Speaking at a two-day sensitisation workshop for stakeholders in the South-West zone, the secretary, FAAC sub-committee on IPSAS, James Nongo, stated that the harmonisation process will be achieved through a uniform chart of accounts system for the three tiers of government.
He said, it will be followed after due approval by relevant stakeholders involved in budgetary and financial management in the three tiers of government.
The stakeholders’ workshop for the South-west is the fourth in the series of programmes organised by the FAAC sub-committee for the six geo-political zones as part of strategies to get the buy-in of key players for smooth the adoption of the new accounting standards.
The Accountant General of the Federation (AGF), Mr. Jonah Otunla, who declared the workshop open, noted that government was presently taking concrete steps to ensure that all general purpose financial statements of the three tiers of government become compliant to the provision of IPSAS before the end of 2012.
The AGF said the theme of the event which is “the adoption of IPSAS in Nigeria-the role of stakeholders” was carefully selected to get the buy-in of political office holders and professionals needed to achieved the process.
According to him, the Federal Executive Council (FEC) had approved at its meeting of July 28, 2010 that Nigeria adopt the provisions of the International Financial Reporting Standards (IFRS) and IPSAS for the private and public sectors respectively.
“Consequently, the Federation Account Allocation Committee (FAAC) at its meeting held on June 13, 2011 set up a sub-committee to provide a roadmap for the adoption of IPSAS in the three tiers of government in Nigeria,” he said.
Otula added that “this interactive workshop in Ibadan which is for the South-west zone has already been held in Kaduna for North-west, Enugu for South-east and Port Harcourt for the South-south, hinting that others will be held in Bauchi for the North-east and Abuja for the North-central before the end of September this year.
Stakeholders who spoke at the event agreed that the decision by the Federal Government to adopt the new accounting standard was a mile stone that should be encouraged by political players in the three tiers in terms of providing the will power for its success.