NIEVS Condemns Valuation of Plants, Machinery by Non-professionals

The Nigerian Institution of Estate Surveyors and Valuers (NIESV) has condemned the valuation of plants and machinery by non-professionals as a source of revenue loss to government at all levels.

According to the Chairman, Faculty of Housing, NIESV, Mr. Paul Osaji, government at all levels were losing huge revenue that should come from taxes on machinery and plants, because they depend on unqualified professionals, who are neither estate surveyors nor valuers to do the valuation of these equipment.

Osaji said, “With proper valuation of industrial machinery and plants, be it the breweries, aviation, communication outfits, taxes that would be generated either by the federal, state or local governments in term of revenues are so huge that their effective exploitation is capable of eliminating total dependence on revenue from oil, not to talk of engaging in external borrowing.”

The involvement of qualified professionals, in this case, Estate Surveyors and Valuers would improve the revenue base of government, said Osaji, who is the Managing Partner, Paul Osaji & Co.

He explained the processes and a set of procedures used to determine the economic value of an owner’s interest in an asset, saying “Valuation of Assets may generally be required for following purposes: Mergers and Acquisitions – Pre Merger and Post Merger.

“From Financial Reporting Banking (Lending against Assets), it involves impairment studies, purchase price allocation, Distress Assets/ non-Performing Asset, Court & Litigation support, including management information and strategic planning. “Other processes include insurance, initial public offerings, cost investigations disinvestment, among others.

“The scope of Valuer include complete understanding of valuation purpose, collection of data and documents and understanding, physical inspection of subject assets, market survey and collection of data pertinent to the valuation exercise.”