The Cross River State Government has commenced a comprehensive process to assist its 18 local government councils to migrate their budgets from a 36-digit to a 52-digit National Chart of Accounts in line with International Public Sector Accounting Standards (IPSAS).
The exercise, coordinated by the State Budget Office, is aimed at strengthening transparency, accountability and clarity in public finance management at the grassroots level.
Speaking during a walkthrough session with local government officials, Special Adviser to the governor on Budget, Mr Otu Otu Ita, explained that the state has already migrated its accounting practices to Accrual Accounting and is among the leading states in Nigeria in IPSAS compliance. He noted that all financial transactions carried out by the state’s Finance and Accounts Departments must now align strictly with the 52-digit National Chart of Accounts.
According to him, the February engagement with local councils focuses on domesticating the new accounting framework to enable local governments to properly capture and report their revenue inflows and expenditures.
He said that for several years, the state government has consistently organised training programmes for local government personnel to improve their capacity to report income and utilisation of public funds, but the current exercise marks a significant step toward full IPSAS compliance.
Ita explained that the 52-digit Chart of Accounts provides detailed information on budget lines, including their functional purpose, economic benefit, administrative classification, project location and funding sources.
“For instance, a road project will no longer be broadly listed as ‘road construction in Akamkpa.’ The budget will clearly specify the exact communities, such as Mfamosin, Oyanga or Uwet, and also indicate whether the funding is coming from the federal government, state government, donor partners or community contributions,” he said.
He added that the new framework would make budget documents more simplified and accessible, enabling citizens to easily understand how projects are distributed across political wards and villages, and what benefits they are expected to derive.
The transition, he noted, will also ease the work of finance and accounts officers by improving the accuracy and efficiency of income and expenditure reporting.
The state government expressed optimism that the initiative would ensure equitable project distribution, enhance public trust, and clearly define the benefits accruing to citizens from each budget line at the local government level.
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