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The Nigerian Institution of Estate Surveyors and Valuers is concerned about the government's inability to determine the value of real estate assets nationwide accurately.
The President of NIESV, Victor Alonge, raised this issue during the 2024 International Valuation Day celebration, emphasizing the theme "The Importance of Asset Valuation in Financial Stability."
He called on the government to prioritize the establishment of ethical valuation practices in order to achieve financial stability, build investor confidence, attract foreign direct investments, and contribute to effective national planning.
Alonge explained that the Valuation Day celebration aims to raise public awareness about the significance and essential roles of valuation, especially in the country's economic activities and development.
The NIESV president said the current state of the Nigerian economy called for an urgent look at the huge benefits of appropriate professional asset valuation, which would help unlock key potential and inherent resources in the country.
He noted that the theme was chosen to act as a catalyst for improved understanding and awareness of the need for Nigeria to join many other successful jurisdictions in ensuring proper professional valuation of its land and property assets.
He said, “Nigeria currently lags behind in undertaking credible valuation of her national assets. While the total value of global property assets was reported at $613.30tn, and the global stock market at $109tn as of 2023, Nigeria does not yet know the value of her own real estate assets. This no doubt calls for action from the government as knowing the value of our national real estate asset would help in meaningful national planning.
“Also, decisions about the allocation of resources will, therefore, improve if we all appreciate the key roles and importance of asset valuation in achieving financial stability and the promotion of investors’ confidence in attracting foreign direct investments into the country.”
According to Alonge, valuation is crucial to compliance with business entity financial reporting standards, as well as in public sector accounting standards.
He said the global focus of the International Valuation Standards Council was to promote the realisation of the International Financial Reporting Standards worldwide.
“Asset valuations that comply with the approved global standards, promote investors’ confidence and contribute immensely to financial stability, both of which are necessary for economic development. Valuations are required for the assessment of the values of tangible assets, business, and intangible assets and financial instruments.
“Asset valuation is no doubt key to unlocking those potentials and in identifying the inherent resources that are available for the benefit of not just this generation, but also the generations to come sustainably. It is very clear to us as valuers, that Nigeria sits on gold but because it is not polished, it appears to the untrained eyes as dust,” he remarked.
