How IPSAS can reduce corruption in public finances – OAGF

Going forward, any federal government ministry, department or agency that doesn’t implement the International Public Sector Accounting Standards (IPSAS) will have restricted access to their funds, the Office of the Accountant General of the Federation has said.

The Federation Account Allocation Committee (FAAC) sub-committee presiding chairman, Mr Christopher Nyong, stated this at a three-day nationwide training capacity building programme for financial management operators in the three tiers of government in Abuja.

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The training has the theme: continuous capacity building on IPSAS implementation.

From January 2016, the government migrated from cash based accounting to IPSAS.

Mr Nyong said the IPSAS implementation introduces a framework for accountability and transparency in public finance.

The IPSAS that Nigeria has adopted is to institutionalise the framework for addressing corruption, he stated.

“It will reduce corruption to a large extent. Corruption is not only an issue of financial reports but the character of the individual. IPSAS framework will be able to address the loopholes that human beings have created for corruption.

“MDAs that refuse to fully implement IPSAS, their access to public funds will be restricted,” he said.

Also speaking at the event, Mr Sylva Okolieaboh, the director overseeing Office of the Accountant General of the Federation/chairman of FAAC Sub-committee on IPSAS Implementation said since the implementation of IPSAS Accrual Basis of Accounting on January 1, 2016, OAGF has constantly engaged with key stakeholders and has provided support in form of capacity building across the federal, state and local governments for seamless implementation.

He said due to certain drawbacks, not all entities of government have been able to effectively migrate from Cash Basis Accounting to IPSAS Accrual Basis of Accounting.

“One of the major drawbacks that we have identified is inadequate manpower and capacity at the various levels of government to drive IPSAS implementation and that is why the sub-committee has made concerted effort to continue to build capacities across the three tiers of government,” he said.