‘We’re harmonising valuation practice to instill transparency’

Land economists have explained that the adoption of International Valuation Standards (IVS) 2017 is an important milestone towards harmonising valuation practice in the country.

They said that the new standard will serve as the key guidance for valuation professionals globally and will underpin consistency, transparency and confidence in valuations, which are key to investment decisions as well as financial reporting.

The Standards have been created following an extensive consultation process from April to October 2016. More than 100 official comment letters on the initial drafts of IVS 2017 were received from a range of stakeholders, including Nigerian Institution of Estate Surveyors and Valuers NIESV), individual professionals and academics.

Speaking at a two-day summit organized by the Lagos branch of the institution, the president, Mr. Rowland Abonta noted that the professional practice manual, known as “Green Book”, is part of the moves to bring the practice of the profession to global standards.

He admitted that there may be differences in valuation by two firms in a particular building, but the difference may not exceed 10 per cent margin. “We have identified there are challenges that’s why are focusing so much on standards. Before now, Nigeria does not have any particular standard for itself, but right now, we have Nigeria Valuation Standard.

He said the institution is taking the issue of data very seriously. Most of the time, if you don’t get uniformed data, it affect the entire process of valuation and people end up having varied figures. Professionally, we do not accept and condone where two valuers are working on the same property and having wide margins. Of course, it is professional misconduct and we have in the past sanctioned people involved.”

Mr. Kevin Ofili, a senior partner at Paul Osaji and Company disclosed that in developed countries, there are appraisers review board that wades into disputes involving valuers and clients. He also hinted that without adequate briefing from clients, valuation figures might differ between two estate surveyors.

Ofili states that the IVS 2017 comprises five General Standards and six Asset Standards. The General Standards set requirements for the conduct of all valuation assignments including establishing the terms of a valuation engagement, bases of value, valuation approaches and methods, and reporting.
The Asset Standards include requirements related to specific types of assets, including background information on the characteristics of each asset type that influence value and additional asset-specific requirements regarding common valuation approaches and methods used.

Abonta commended the branch for their foresight in updating the knowledge base and skills of members in the key practice areas of the profession. “The summit, which theme is Developing Business Modules for Best Practices” is very timely in face of growing demands for efficient service delivery by our clients and the general public vis-à-vis the emerging new techniques and areas of practice within the profession.

“The world has actually become a global village and no nation can survive without bench marking other economies in the global business environment, hence the necessity for us to adopt international best practices in our international practice.”

The state’s branch chairman, Rogba Orimalade said that “over the years the estate surveyors and valuers has failed to properly articulate his professional competence in key segments of the economy, which has led majority of the populace to arrive at the conclusion that they are mainly experts in estate agency and valuation.”

According to him, this year’s summit is expected to look at critical segments in the economy, which would enable us as institution create business modules that would be used to provide solutions that should have positive and lasting impact to the society.

“The estate surveyor and valuer by virtue of his training is indeed very versatile and his skills are indeed relied upon in all areas of the economy,” he said.