Audit observed from Note 31, ‘Investment’ and a document obtained from the Accountant-General of the Federation, titled ‘Statement 7 – Summary of Federal Government Investments and Loans to Government Companies and other Governments as at 31st December 2018’, that investments of N84,702,890,511.00 in companies whose going concern and continue existence are in doubt were consolidated.
Efforts by the audit to verify the investment in NITEL yielded no result as the Agency in question had been liquidated. Continued recognition of these investments without fully disclosing their impairment status in the Consolidated Financial Statements as required by the above IPSAS cast doubt as to their accuracy and existence.
Audit therefore concludes that since there is no evidence that supports government investment in NITEL, MTEL, NEPA and Loan to NITEL PLC by Federal Ministry of Communications, it is more likely that these investments may have been impaired.
The Accountant-General of the Federation is required to:
i. Provide justification for non-compliance with the provisions of IPSAS 26 and 33, and
ii. Explain the continued recognition of doubtful FGN’s investments in NITEL, M-TEL and NEPA.
iii. Otherwise, sanction relating to provisions of FR 3129 should accordingly apply.
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