Survey Reveals 80% of Government Buildings Lack Appraisal Value
Surveyors have said the failure to conduct valuations of government land was having a negative impact on revenue generation in the country
The Managing Partner of Samson Agbato Consulting, Emmanuel Ebede, said 80 percent of lands were not valued due to ignorance.
He said, “Understanding or knowing the worth of an asset will help to appreciate its value. If this is not done, we will not know what value it can create. Over time, we have seen assets, especially government assets, because they do not actually know the value of these assets.
“A lot of government properties, secretariats, government buildings, offices, among others, are being abandoned, for example, the old secretariat in the Ikoyi area of Lagos. Also, high-rise buildings that could yield substantial income for the government have also been abandoned for a while because they do not understand the value they carry.”
According to him, if asset valuers are called upon to help carry out this valuation, the government can know how much of its funds are wasting away because of these abandoned properties.
He added, “We know the debt profile of the country today. If these assets are utilized, it will help in reducing to an extent the debts. Valuation should be looked into because these assets are many in several states of the country, including the Federal Capital Territory.
“So, if we know the worth, we can ascertain if the government wants to sell it off and make money out of it than leaving it to waste for years without yielding any income, either through rent or outright sale. With the valuation of the assets they will be able to know what to do with the assets to maximize revenue.”
In the same vein, the Quality Control Officer of the Valuation Unit, Samson Agbato Consulting, Adedeji Opayiga, said the Nigerian system did not prioritize real estate investments
He said, “If you go to Ikoyi, there are so many abandoned buildings there, and the value of those buildings today worth billions of naira, and the resultant effect is the waste, which is not boosting revenue generation for the economy.
“An investment analysis can be done to look at viability analysis or appraisal evaluating the worth of these properties. This is part of the call of estate valuers to help with the estimation.
“In addition, a joint venture can be set up with private investors. This can birth a collaboration model on maximizing these abandoned lands to boost the nation’s revenue.”
Meanwhile, the Head of the Valuation Unit, Samson Agbato Consulting, Ayo Ajayi, noted that it was obvious that many of the country’s assets were being wasted. He said, “Our refineries are wasting. We have a culture of wastage and we need to keep working on our ideologies. These assets are wasted because the maximum usage generates the highest and best use.
“Real estate being an avenue for money laundering, people just purchase lands without using them, just tieing the lands down, especially lands in prime locations.”