Lagos Begins Statewide Valuation of Public Assets in IPSAS Reform Drive
Lagos state Governor, Babajide sanwo-olu
The Lagos State Government has initiated a comprehensive statewide valuation of public assets as part of its ongoing fiscal reforms under the International Public Sector Accounting Standards (IPSAS) framework. Coordinated by the Lagos State Valuation Office, seven consultancy firms have been appointed to carry out the exercise, which marks a significant phase in enhancing public financial management and transparency across the state.
Strategic Asset Valuation to Align with IPSAS
The valuation initiative is the eighth phase in Lagos State’s transition to accrual-based accounting under IPSAS a global benchmark for public sector financial reporting. This reform process, which the state has pursued since 2016, seeks to replace cash-based accounting with an accrual system that fully recognises and documents all government-owned assets.
According to Adekunle Awolaja, Director of the Lagos State Valuation Office, the current exercise will cover a broad range of infrastructure, including roads, bridges, jetties, and canals, with all data captured in a centralised government asset database. This comprehensive valuation is designed to ensure asset values are properly identified, measured and reported in line with IPSAS standards, strengthening budgeting processes and asset management.
Scope and Institutional Collaboration
The valuation exercise involves key state agencies across infrastructure and transport sectors, including the Ministry of Infrastructure, Ministry of Energy and Mineral Resources, Ministry of Waterfront Infrastructure Development, and the Lagos Metropolitan Area Transport Authority. This multidisciplinary approach is intended to ensure that both movable and fixed assets are accurately captured and assessed, providing a reliable basis for financial reporting and decision-making.
By aligning asset records with international accounting standards, the state government aims to improve transparency, strengthen internal controls, and support more effective insurance and maintenance planning for public infrastructure. The shift to accrual accounting also enables more detailed and accurate reflection of Lagos’ financial position, enhancing trust among investors and development partners.
Broader Financial Transparency and Governance Benefits
Implementing IPSAS has become a priority for governments seeking to improve fiscal discipline and comparability with global public sector reporting practices. Under IPSAS, assets are not only quantified but also more transparently disclosed, enhancing fiscal accountability and decision-making clarity. While Lagos is among Nigerian states leading this transition, broader IPSAS adoption aligns with international trends that emphasise improved reporting, reliability and comparability of public accounts.
The exercise also positions Lagos to better leverage its asset base for planning, budgeting, insurance and potential monetisation strategies. Previous government disclosures suggested that gaps in asset documentation and land records have historically constrained revenue optimisation an issue that comprehensive valuation seeks to address.
The commencement of a statewide public asset valuation under the IPSAS reform framework represents a milestone in Lagos State Government’s efforts to strengthen financial management, transparency and accountability. By systematically identifying, measuring and reporting its infrastructure assets, Lagos is aligning with international best practices in public sector accounting and establishing a foundation for more efficient governance, budget planning and public asset utilisation.
