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Practitioner craves enabling environment for auction business

By Ngozi Egenuka
10 December 2022   |   4:23 am
Lead Auctioneer/ Chairman, CR Limited Auction House, Mr. Ade Onanuga, has called on the government to create an environment for auction business to thrive.

Lead Auctioneer/ Chairman, CR Limited Auction House, Mr Ade Onanuga, has called on the government to create an environment for auction business to thrive.

He also applauded Lagos State for passing the law that stipulates that the disposal of public assets should be done through auction.

Speaking at the firm’s public auction in Lagos, he noted that the system offered a fair and transparent price for assets. He listed cultural limitations, understanding of the system and desire to not follow due process, as challenges facing the sector.

On cultural limitations, he said people feel auctioning their item “means they are in distress.” Another issue is understanding the system and organisations.

He said: “When organisations invite us to buy their products and re-sell, that’s not auctioning. We prefer to invite the people to our place, so that they can witness how competitive the bidding is. Sometimes, people try to cut corners to purchase the items, instead of waiting for the product to be auctioned.”

Onanuga explained that they had over 200 items to auction, including cars, building materials, furniture, and household items at the event.

He said people always get fair prices in any transparent system, adding that most of the items auctioned were new and old or obsolete. He said that in sourcing for items, proposals were sent to organisations in need of their services.

“We believe every organisation would have something that they have kept aside, and don’t know what to do with it, either because they are surplus or old, or scraps or obsolete. They call us in and we advise on the best process,” he said.

According to him, the auction process “entails inspection to know if there are any item of interest, registration, then accreditation on the day of auction.

“After that, the individual is given a paddle number, which becomes the reference number in identifying the person when bidding.
Onanuga stated that for auction, the firm doesn’t decide the price but are directed by the guide and reserved price.

“A lot of people have misgivings that auctioneers sell the items at their own price. No, the clients set a reserved price and we always advise them to make sure it is affordable. We try to encourage people to make a discount of 40 to 60 per cent of the current market value,” he added.