Transition to IPSAS : Achieving a Successful and Seamless Adoption in Nigeria – Part 2
IFRS Watch - Issue 5
In July 2010, the Federal Executive Council (FEC) approved that Nigeria should adopt the provisions of the International Financial Reporting Standards (IFRS) and IPSAS for both the public and private sectors. As a follow up to FEC approval, the Federal Government formally announced its adoption and launched the roadmap for its implementation on 2nd September 2010.
The Office of Accountant-General of the Federation and the Financial Reporting Council of Nigeria sometime in May 2012, declared their resolve to collaborate in promoting the use of accounting standards in the public sector. The Accountant-General of the Federation, Mr. Jonah Otunla, at a stakeholders' workshop held in Abuja on the roadmap for the adoption of the IPSAS in Nigeria made public the intention of the Federal Government.
The accountant-general explained during the workshop that the standards would build confidence of donor agencies, improve service delivery, enhance public-private partnership, and boost peer review mechanism of financial reports among the three tiers of governments and governments of other countries. Other benefits of the adoption are better access to financing through either bond releases or international financing from organisations such as the International Monetary Fund and the World Bank.