The Nigerian lnstitution of Estate Surveyors and Valuers (NIESV) has called for improved recognition of estate surveyors in valuation practices to guarantee market confidence and asset transfers.
Chairman, Lagos branch of the lnstitution, Mr Gbenga lsmail, led the call during a panel discussion organised by the branch to mark 2024 Valuation Day in Lagos.
The forum attracted the Director, Lagos State Valuation Office, Mr Kunle Awolaja, past NIESV chairman Lagos branch, ‘Dotun Bamigbola, Vice Chairman of the Lagos branch, Tosin Kadiri, and representatives of Bank of Industry, Mr Michael Adisa and Chartered lnstitute of Taxation of Nigerian (CITN). Others include Tope Yinka-Ojo, Akinropo Abraham, Abidemi Ojo and Dr Samson Agbato.
The estate surveyors reinforced that asset valuation is paramount for making informed decisions that drive and maintain financial stability for the government, organisations and individuals. They further stressed that it enhances investment efficiency through informed decisions, maximises returns on investments, improves risk management, safeguards assets and protects investors’ interests.
Ismail said through market confidence, the valuation report will truly reflect the reality of the market, adding that assets must have titles, and planning documents that are not within encroachment areas such as roads and Right of Way.
He noted that when certified valuers are engaged, it eliminates inconsistencies, mismatches in valuation reports and boosts market confidence. “Financial Reporting Council is working with businesses to simply modalities and ensure that every financial report has accurate reporting regarding financial and physical assets.
“As valuers, we are looking at the physical end, ensuring that the land and movable assets are consistent, and analysis of the market must be clear for the public to know what may have transpired.”
On the controversy between estate surveyors and valuers and engineers as regards valuation, he disclosed that engineers value the functionality of assets, while estate surveyors and valuers, speak to the economic viability and productivity of assets.
Ismail emphasised that there is a greater role for valuation to determine the growth of the country, adding that Nigeria can value the different sectors of the economy to determine if they are productive.
The Head, Directorate of Valuation Standards, Financial Reporting Council of Nigeria (FRCN), Mr Ugochukwu Nwora, at the forum disclosed that the council is already working on new regulations to guide valuation practice in the country.
Nwora said: “One of the things the council intends to do is to bring on board valuation regulation, which will guide the industry and ensure that every valuer has ‘dos and don’ts’ of the profession.
“We have observed that everybody brings out a report and no standardisation even though they have an in-house Green Book, human factors still show whereby some people take decisions on their own.
“Ours is to ensure that you have FRCN who will look at every job done and ensure that they meet the standard,” he said.
“The new rule should be out before the end of July; we should be inaugurating it next week.
“We are engaging NIESV members as a technical committee, Ministry of Finance, Bureau of Public Enterprises and other stakeholders. We will first bring out an exposure draft for stakeholders to critic it before it becomes law,” he said.
