John Alechenu
ABUJA — The Nigerian Institution of Estate Surveyors and Valuers has underscored the crucial role of valuation in achieving effective tax reforms and enhancing economic development.
Speaking at a press briefing to mark the 2025 International Valuation Day in Abuja on Monday, the President and Chairman of the Council of the Institution, Victor Alonge, urged federal and state governments, as well as private entities, to integrate valuation into their policy decisions.
He stated, “Valuation is key to the success of the proposed tax reforms. Whether it’s for accounting (IPSAS), insurance, taxation, mortgages, or asset registers, accurate valuation of both fixed and movable assets is central to economic development.”
Alonge emphasized that every business entity must report its financial activities, including asset valuations, annually. He added that proper valuation is necessary before public assets are disposed of, and that procurement processes at federal and state levels now mandate valuation as a prerequisite.
“No bank will accept real estate as collateral without first determining its value,” he said. “If valuation is wrong, everything else that follows—taxation, lending, investments—will also be flawed. Therefore, valuation must be real, accurate, and credible.”
He explained that taxation depends heavily on proper valuation, as the value of an asset determines the amount of tax that can be justifiably levied. This, he noted, aligns with the theme of the 2025 International Valuation Day: “Tax Reform for National Economic Prosperity: Why Valuation Matters.”
Alonge highlighted that the theme is timely, especially as the government rolls out policies aimed at re-engineering the economy through tax reforms. He disclosed that a bill related to these reforms is currently before the National Assembly.
He added that credible asset valuation is essential for enhancing government revenue through taxation and achieving financial stability.
“Valuation is key to determining the true worth of assets and, by extension, the correct amount of tax to be levied on them,” Alonge said.
He concluded by reaffirming the legal backing of the profession, citing Decree No. 24 of 1975, now CAP E13 LFN 2007, which recognizes valuation as the exclusive responsibility of registered Estate Surveyors and Valuers.
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