ACMV advocates accurate assets valuation in capital market to attract more investments

Association of Capital Market Valuers (ACMV) has called for accurate assessment and valuation of companies’ assets, especially those listed on the Nigerian Exchange Limited (NGX) to attract more investments.

During a courtesy visit to the Rutam House headquarters of The Guardian, yesterday, in Lagos, the association’s chairman, Chudi Ubosi, said ACMV is well-positioned to make its presence felt in market operations.

He stressed that services of professional valuers were key to the success of a capital market, especially in terms of determining what values to append to companies’ assets, as well as ensuring that accounts of quoted firms reflect their true financial positions.

According to him, when investors are certain that market valuations are credible, it would boost confidence and attract more foreign direct investments into the market.

Ubosi said: “For a long time, a lot of trade groups in the capital market have disrupted our role as estate surveyors and valuers, so, we find it necessary to make our presence known in the capital market. ACMV is an arm of the Nigerian Institution of Estate Surveyors and Valuers (NIESV).

“A lot of companies coming into the market to raise money have assets long before now, but people rely on their audited accounts and figures that the accountants have ascribed to their assets, but now we are coming in as professional valuers and we want people to know that you can not go to the market without undertaking the valuation of your assets.

“We are now registered with the Securities and Exchange Commission (SEC). We are coming in to take our rightful place in the capital market operations and provide the services that people need in terms of assets valuation and determining what values to append to their assets.

“It does not just end with only capital market operations, we are looking at a situation where at the end of the day, our operations will attract more foreign investors into the market and the kind of account companies release must be a true reflection of the financial position.”

The secretary, Demola Adetola, said Nigeria is currently losing huge sums to delay in disposing of recovered items and immovable assets forfeited to the Federal Government.

He also stated that the due to delay in disposing the forfeited items, lots of the properties had dilapidated, resulting in depreciated value.

Adetola urged agencies in custody or saddled with disposal to speed up the process of sales to generate revenue and save Nigeria from its current debt burden

“Government also must play their role and do what is right because they have the political will to change a lot of things. Some of the assets that government seized have dilapidated and depreciated in value.

“By the time they are recovered, what government may end up getting is not up to what the value were at the time they were recovered. These are the issues that we are coming in to address,” he added.