Value appraisers put the housing sector on the stock exchange

Valuers of assets under the auspices of the Association of Capital Market Valuers in Nigeria have said they will work to ensure the housing sector is listed on the stock exchange, upon recognition by the Securities and Exchange Commission.

The association, which is primarily a member of the Nigerian Institution of Estate Surveyors and Valuers, gave this assurance during a courtesy visit to SEC, according to a statement.

The association’s president, Chudi Ubosi, said in the statement: “If a company wants to raise money; when they need to determine how much to pick up and when they are approaching the negotiating table, valuations are needed in all cases.

“We are aware that registration is the entry point for all capital market operators and with the enactment of the Investment and Securities Act 2007, these registrants are required to meet a certain mix of cash/assets in their capitalization.”

Ubosi noted, “Some of these participants may engage appraisers who are not loyal to the SEC, meaning the integrity of such a valuation could be at stake and the results questionable. We believe that an operator with a cash/asset mix of 60/40 should have these assets appraised to ensure they are genuine.

“Our role as surveyors and valuers in determining the value of the assets of these companies will ensure transparency, accountability and a continued improvement in investor confidence in the market.”

He urged SEC to investigate all its activities and see how to ensure that the valuation is done by the SEC’s registered appraisers, especially in raising capital, offering SUKUK, bonds, etc. ., stressing that appraisers have an important role to play in these matters.

In his response, SEC Director General Lamido Yuguda stated that in developed countries such as the United States, 20 percent of their GDP was contributed by the housing sector, making the sector a major contributor to the variations in their stock market and an important contribution to the wealth of their country.

In his view, that is not the case in Nigeria, as the housing sector has little impact on GDP and the stock market, as the housing system is largely controlled by individuals who intend to keep their homes for inheritance purposes, whether in use or not. without government control.

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