Estate Surveyors and Valuers’ Registration Board of Nigeria (ESVARBON) and the Nigerian Institution of Estate Surveyors and Valuers (NIESV), have kick-started a process to standardize and align its proposed Nigerian Valuation Standards to be known as ‘Green Book.’
The objective is in keeping up with global best practices in the Real Estate valuation industry and boosting the quality of valuations for financial reporting purposes.
The document is undergoing external stakeholders’ consultation inputs; and the NIESV Lagos branch last week, provided a forum for members to voice their opinions on the proposed valuation reporting template under its Mandatory Continuous Professional Development Programme (MCPD).
A board member, and Chairman, Professional Practice Committee (PPC), ESVARBON, Mr. Victor Alonge said that the ‘Green Book’ would address the shortcomings and general inadequacy in the current template.
“It would incorporate Professional Standards (PS) and Valuation Practice Statements (VPS) that all members providing a written valuation would be required to comply with. The Green Book will set out procedural rules and guidance for valuers. It will cover matters relating to ethics and conduct, but also establish a framework for uniformity and best practice in the execution and delivery of valuations,” he said.
He further pointed out that the proposed document would demonstrate to clients that, adding that, there are many valuers who will make different judgments; all works are within a common body of knowledge, application, and expression.
“Differences will, therefore, be as narrow as possible, and where they occurred they will be reasonable and explicable, not perverse or chaotic.
“When eventually published, it will assist valuers to demonstrate that the profession is regulated, not in a purely bureaucratic sense, but that they perform their task in an organized manner, not maverick or inspirational, that they take care to educate themselves, and that they are subject to discipline” Alonge added.
However, NIESV President, Dr. Bolarinde Patunola-Ajayi, assured that the institution would keep members abreast with new trends in the profession through MCPD programmes, adding that the current programmes are meant to benchmark with international practice standards.
Recall that there has been tremendous pressure on bodies like Securities Exchange Commission (SEC), Nigeria Stock Exchange (NSE), PENCOM to allow foreign companies to carry out the valuation of certain local jobs.
The arguments brought about by some of these companies in Nigeria are about the lack of technical expertise to carry out certain jobs and THE financial muscle to acquire the necessary technology to carry out key valuation jobs.