Senate queries 558 FG agencies over N969bn intangible assets
The Senate Committee on Public Accounts has queried about 558 Federal Government ministries, departments and agencies (MSAs) over their failure to account for intangible assets worth about N969 billion in the 2019 budgetary allocations.
Intangible assets are assets that lack physical nature like computer software, licences, trademarks, copyright, brand recognition and trade names while tangible assets are substantial assets such as land, vehicles, equipment and furniture.
Securities like stocks, bonds, and cash that derive their value from contractual claims are regarded as tangible assets.
Presenting the 2019 Annual Report of the Auditor-General of the Federation, the vice chairman of the Senate Committee on Public Accounts Ibrahim Hadeija bemoaned the exorbitant amount categorized as intangible assets in the document.
The report stated: “Audit observed from a review of notes 36 and 36A (Intangible Asset) to the FGN’s Consolidated Financial Statement that the sum of N969 Billion was categorised under Notes 36A as Intangible Assets without a schedule showing the classification/nature of the intangible assets contrary to the provision of the International Public Sector Accounting Standard) 31.”
The report further stated that there was no disclosure for the audit to confirm which of intangible Assets has finite and infinite life to determine whether amortisation should be or not.
According to the report, the concerned 558 agencies include the State House, Bureau of Public Procurement, Federal College of Forestry, Ibadan, Bureau of Public Enterprises, Federal College of Forestry, Jos, National Orientation Agency (NOA), National Population Commission (NPC), Bureau of Public Service Reforms (BPSR) and Nigeria Police Academy, Wudili.
Also, the Federal Civil Service Commission, Office of the National Security Adviser, Ministry of Interior, Nigeria Immigration Service, Federal Fire Service, Police Formation and Command, Headquarters, Nigeria Security and Civil Defence Corps (NSCDC), Administrative Staff College of Nigeria, Office of the Head of the Civil Service of the Federation, Federal Government Staff Housing Loans Board, Federal Training Center, Ilorin, Office of the Economic Adviser to the President and the National Broadcasting Commission.
Others include the Federal Ministry of Information and the agencies under it such as Voice of Nigeria (VON), Nigerian Film Corporation, National Theatre, Headquarters, News Agency of Nigeria (NAN) and many others.
Annual reports of the Auditor-General of the Federation usually reveal fraudulent activities in Federal Government agencies.
The 2019 Audit Report revealed that agencies of the Nigerian Federal Government paid for projects without any proof of performance, leading to misapplication and loss of government funds.
The report highlighted cases of non-compliance with Financial Regulations by several agencies of the Nigerian government.
