Use and Enforcement of Valuation Standard in Nigeria

Abstarct 

There is increased awareness in recent times of the urgent need to improve valuers‟ methodology and practice along national, regional and international boundaries. This is informed by the growing demand on the side of investors who can no longer accommodate unreliable valuation advice, and instead are requiring sophisticated investment guidance (Gilbertson & Preston, 2005; Ogunba & Ajayi, 2007). This buttresses the strategic relevance of valuation in modern investment decision often required for sales and acquisition, mortgage transactions, insurance policies, measurement of property investment performance among others. Harvard (1995) reported that without reliable valuations, investment in property could not be reliable and efficient.

Valuation has been variously described as both the art and science of estimating the worth of an interest in property for various purposes (Millington, 1988; Ajayi, 2003). The act of valuation is an inexact science largely because it depends on individual valuer‟s expertise, training, intuitional judgement, and underlying assumptions. This position coupled with the complexities of the property market in which valuers operate and the unique characteristics of property give rise to valuation variations and inaccuracies. As such, valuation standards are required to assist valuers in their process of value estimation to enable them arrive at a more transparent and objective opinion of value in accordance with the basis appropriate for each purpose that meet the requirements of their clients as the occasion demands.

Valuation Standards are established and accepted procedural rules, ethics and guidance for professional valuers in the conduct of their valuation assignments. It is a summary of best