Shelze Admin ยท March 2026 ยท 10 min read
Nigeria’s commitment to International Public Sector Accounting Standards (IPSAS) adoption represents a foundational shift in how government accounts for public resources. The Federal Government’s transition to accrual-basis IPSAS, initiated under the Integrated Personnel and Payroll Information System (IPPIS) reforms, has progressed significantly at the federal level, but the picture at state and local government levels remains uneven.
Federal Adoption Progress: The Office of the Accountant-General of the Federation has successfully migrated most federal MDAs to IPSAS-compliant reporting frameworks. Key achievements include the implementation of asset registers capturing N47 trillion in public assets, consolidated financial statements prepared under IPSAS standards, and audited accounts submitted to the National Assembly within statutory timelines.
The Documentation Burden: What most MDAs underestimate is the documentation intensity of IPSAS compliance. Unlike cash-basis accounting, accrual IPSAS requires complete fixed asset registers with depreciation schedules, accounts receivable and payable registers with aging analysis, liability provisioning for pension obligations, contingent liability disclosures, and revenue recognition based on exchange/non-exchange transaction classifications.
State Challenges: Of Nigeria’s 36 states, only 12 have achieved meaningful IPSAS compliance. The remaining states face compound challenges: legacy accounting systems incompatible with accrual reporting, insufficient trained accounting staff, and political resistance to the transparency that IPSAS compliance creates.
The Path Forward: States targeting World Bank budget support and development financing must demonstrate IPSAS compliance. Our assurance practice has supported several states through diagnostic reviews, gap analysis, and remediation roadmaps. The 2026 deadline for full state-level adoption is approaching โ and the window for structured implementation is narrowing.