The Nigerian Institution of Estate Surveyors and Valuers (NIESV) has expressed worry over the government’s failure to determine the exact value of real estate assets across the country.
Speaking at an event to mark the 2024 International Valuation Day with the theme “The Importance of Asset Valuation in Financial Stability”, NIESV President Victor Alonge emphasized the need for the government to expedite efforts on valuation ethics.
He highlighted that this would not only achieve financial stability but also bolster investor confidence, attract foreign direct investments, and contribute to meaningful national planning.
Alonge stressed that the celebration of Valuation Day aimed to enhance the awareness of the Nigerian public regarding the importance and key roles of valuation in economic activities and national development.
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He pointed out that Nigeria’s current economic state necessitated a closer look at the significant benefits of professional asset valuation, which could unlock key potential and inherent resources in the country.
According to Alonge, Nigeria currently lags behind in conducting credible valuation of its national assets. While the total value of global property assets and the global stock market stood at $613.30tn and $109tn respectively as of 2023, Nigeria is yet to determine the value of its real estate assets.
This gap underscores the urgent need for action from the government to facilitate meaningful national planning.
He emphasized that valuation is vital for compliance with business entity financial reporting standards and public sector accounting standards.
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Compliance with approved global standards promotes investors’ confidence and contributes significantly to financial stability, which are essential for economic development.
Alonge concluded by stating that asset valuation is key to unlocking Nigeria’s potentials and identifying the inherent resources available for the benefit of current and future generations sustainably.
He highlighted that Nigeria possesses significant resources, but without proper valuation, these resources may be overlooked.
