By Ngozi Onyeakusi—Leading figures from the worlds of finance, government and academia gathered to debate how Nigeria could best deal with the effect of the global pandemic on public sector finances.

In a face-to-face and online hybrid conference at the NAF Conference Centre in Abuja, hosted by the Association of Chartered Certified Accountants (ACCA) and the Association of National Accountants of Nigeria (ANAN), a respected panel discussed whether taking a balance sheet approach to public finances is the best way forward.

Presenter Alex Metcalfe, global head of public sector for ACCA, presented the key recommendations from his professional insights report Sustainable Public Finances through Covid-19 in which he argues that the conventional measures that governments deploy to account for their spending are not suitable ways for public sector finance professionals and decision makers to capture the full picture and make the best decisions during this crisis.

Alex said: ‘The world of Covid-19 recovery requires a balance sheet approach, something more commonly found in private sector companies, in order that governments can fully account for their spending interventions and gain a more holistic picture of the public finances.

‘This will enable public sector leaders to make better informed decisions on how to build back economies in the most effective and sustainable way.’

Professor Muhammad Mainoma, president of ANAN, said: ‘In order to address all these issues, I consider five T’s very important. The first is Trust; the level of trust between and among the people and within the government sectors is critical if we are going to talk about sustainable development.

‘Transparency is the next; how transparent is the system? Are the people aware and convinced that the kind of resources we are talking about is going to improve their lives. Is the information available, and is it in a way that is very simple to understand?

‘The next is Training; are those responsible trained in how to handle issues and then sustain the development of the frontier? What is the level of competence of those handling financial issues? The next one is Tax; the management of it, and the equity in it, and lastly, Tolerance level. What happens to defaulters, are they allowed to go free, or are there punishment for those that do not do the right thing?’

Helen Brand, chief executive of ACCA, gave a live speech to the conference, in which she said: ‘The role of sustainable public finance in supporting recovery will be absolutely critical. The shocks of the health and economic crisis caused by covid-19, has led to acute physical distress for the public sector.

‘At the same time, the sector has been asked to support businesses and households while building the foundation to ensure a sustainable and inclusive recovery.’

Jamil Ampomah, ACCA director for Africa, said: ‘This is a relatively new frontier as far as public finance management goes, but balance sheet information can improve decision making, and should also act as a benchmark to discuss new policies and will also support government to use enough fiscal firepower to rebuild the economy for more inclusiveness and a greener future.’

ANAN Council member Professor Musa Inuwa Fodio told the conference that Nigeria was at a crossroads in terms of its next steps towards recovery, trying to balance increased revenue without causing austerity.

He added: ‘We are really encouraging governments, especially in Nigeria, to go back to the old concept of value for money. If you look at the 2017 audit report of the Auditor General for the federation, the emphasis is still on compliance and regulatory audit. No mention is made about efficiency, economy and the utilisation of natural resources I think it is very important for the balance sheet approach to begin to go into such issues, and as accountants, we need to address these issues.’

The event panel comprised ANAN Council member Professor SA Aruwa; chairman of the ANAN Conference committee Professor Paul Adebayo; former board member at the Central Bank of Nigeria, and Partner at UHY Maaji, Chief J O Omuya; John Stanford, senior adviser at the International Public Sector Accounting Standards Board; senior economist at the International Monetary Fund Sybi Hida and Ari Aisen, IMF resident representative for Nigeria.

PWC partner & West Africa tax lead, Taiwo Oyedele moderated the panel discussions while Head, External Relations & Economic Development Alliances, FMDQ Group, Adaze Aguele-Kalu anchored the event, which had 113 attendees in person and 516 online.

While the event was organised by ACCA and ANAN, other collaborators included the Chartered Institute of Taxation of Nigeria (CITN) and the Bureau of Public Service Reforms (BPSR). Both the President of CITN, Dame Olajumoke Simplice, and the Director General, BPSR, Dasuki Arabi were in attendance and gave goodwill messages at the end of the event.