NIESV Pushes For Valuation Reforms
Anxiously eager to align its valuation practice with the global standards, the Nigerian Institution of Estate Surveyors and Valuers (NIESV) has called on its regulatory body, the Estate Surveyors and Valuers Regulatory Body of Nigeria (ESVARBON) to unveil a new valuation standard practice, known as Green Book.
President of the institution, EVS (Sir) Rowland Abonta made the call recently in Lagos.
According to him, the soon validation of the Book, will further improve the quality of valuation services in Nigeria.
"I wish to call on the Board to please fast track the processes of validating the Nigerian Valuation Standards known as the Green Book. Members of the profession are waiting anxiously for the formal approval of the Green Book for their use. This will further improve the quality of valuation services in Nigeria", Abonta had said.
And investigations by the DAILY INDEPENDENT revealed that, barring any change in plan, the long-sought Green Book should be unveiled few weeks from now.
A source from ESVARBON hinted that the process was at the last stage, and in just few weeks the new document that will specify direction on valuation practice, in line with global standard would soon be released.
ESVARBON, it was learnt has been working towards aligning valuation practice in Nigeria with best international standards, hence, a review of its guideline and specifications on valuation jobs had since been undertaken.
Although the surveyors have made several attempts to ensure their members comply with best international standards in valuation matter, the current effort was set in motion close notable gabs between local and international principles.
Presently, valuation practice is among others being regulated by a document known as Valuation Reporting Template.
Many practitioners have applauded the efforts by the Board that yielded that template.
Clearly, all key heads of standard valuation report are covered both descriptive, factual and judgment components.
However, the document is sadly short on the key aspects of practical procedures and best practices, guidance, applications and helpful templates.
But concurring that valuation standards document must provide practical guidance on uniform valuation procedures and practices, for valuers, both ESVARBON and NIESV saw the need to carry out a comprehensive review of valuation standards and practice in Nigeria with a view to producing a robust document that not only embraces high level valuation principles but also clearly supports the adoption and implementation of universal standards should be commended.
This effort, according to players in the industry, will ensure consistent, high standards of valuation practice among valuers. The proposed "Green Book" will recognize the twin- status of valuation as both a science and an art.
The "Green Book" would address the shortcomings and general inadequacy of the current Valuation Reporting 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, â€“ in order words, unless stated otherwise, they will be mandatory.
"The Green Book" will also include Valuation Practice Guidance â€“ Applications (VPGA). The VPGA will focus on the relevance and implementation of the professional standards and valuation practice statements in specific contexts, whether for a particular purpose or in relation to a particular property or asset type.
These applications would be primarily advisory in nature, and all our valuers would be expected to be familiar with them.
"The Green Book" is presently undergoing external stakeholdersâ€™ consultation inputs. This stage in the adoption of the standards is vital since the profession exists mainly for public good.
When it is eventually published, the Green Book will assist valuers demonstrate to clients that, although there are many valuers who will make different judgments, all work is within a common body of knowledge, application and expression, as differences will therefore be as narrow as possible, and where they occur they will be reasonable and explicable, not perverse or chaotic.
It will also 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.
Again, it will aid to express more clearly what valuers do and what they do not do. It is not possible to "make clients understandâ€, nor it is tenable to urge that â€œclients should be educated." But care and precision in explanation will do much to achieve both ends.
The document will improve the technical element of valuersâ€™ skill, updating and extending their mathematical models, their access to and use of data, and their expression of the relativities of their judgment.
The Green Book will, in addition encourage valuers to establish their clientsâ€™ needs and requirements, and to satisfy themselves that they are equipped to meet them.
It will also promote the consistent use of bases and assumptions on which valuations are provided; help valuers to achieve high standards of professional competence; promote the provision of unambiguous and readily comprehensible
valuation and appraisal reports; and ensure that published reference to valuations includes clear, accurate and
sufficient information, which is not misleading.
In addition, 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.
However, as good as the document would be, estate surveyors have been warned that the â€˜Green Bookâ€™ will only be a procedural manual for valuers and not a valuation text book setting out methodology and techniques.
According to Mr. Victor Alonge, ESVARBON should continue to set rules for valuers in respect of valuation practice standards and ensure compliance with the rules.
He added that, complying with these rules and moving towards a common valuation process and format will assist in ensuring that estate surveyors and valuers value accurately both in reporting and interpreting rather than actually affecting the market.
"And only then would valuers through the valuation service they provide, play the leading role in the ongoing transformation and repositioning of the profession in Nigeria and in the global valuation community."
Culled from the Daily Independent, September 2018