The Securities and Exchange Commission Nigeria (SEC) has pledged to collaborate with relevant stakeholders on real estate investments in a bid to reduce Nigeria’s housing deficit and improve the sector’s contributions to the Gross Domestic Product (GDP).
Director General of the commission, Mr. Lamido Yuguda, made the promise during a meeting with the leadership of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) in Abuja.
Yuguda pointed out that the SEC appreciated the service that NIESV is providing in the capital market and the country, adding that there is room for collaboration between the Commission and the Institute so that the housing sector can contribute more to the growth of the economy.
He clarified: “There is a renewed focus on Real Estate Investment Trust now. We are getting to see how the sector contributes more to our GDP by facilitating the trading of assets in the real estate sector. I think there is a huge room for collaboration and you have a very big role in the real estate sector
“Nigeria’s population is growing fast and we need everyone in Nigeria to have a roof over their heads. We do not want people to end their careers living in rented accommodation. People need to own their own houses because there is a lot of security and social value in owning your own house.
“You are very important as you operate in an area that is very important to our economy. You have a crucial role to play in the capital market especially as we focus on the Real Estate Investment Trust sector. You also have a huge role to play in the larger housing sector as at the moment we have not been able to harness the full potentials in that sector”, the regulator stressed.
Earlier in his remarks, the Chairman, Association of Capital Market Valuers, Mr Chudi Ubosi, stressed that determining the values of assets of organizations in the capital market remained the bedrock for decisions and a helpful tool in a range of work situations.
This is even as he maintained that valuation remained critical in mergers, acquisitions and divestment because it helps to price an organization and to estimate and value synergies as well as assess potentials of different strategic options among others.
He explained: “Another useful bye product of conducting asset valuation prior to listing and during the currency of listing is to check asset stripping which we have seen recently in organizations and companies. The resulting documents from valuation will certainly make this impossible as it will make management accountable
“Valuation will also comment on sub-optimal use of asset which can lead to under valuation. Using mainly market approach as rearrangement of asset use can bring out hidden values in the company under question
“When businesses want to raise money, when they need to determine how much should be raised as well as when they approach the negotiating table, valuations are needed in all instances”, the investment expert added.
Ubosi pointed out that when valuations have integrity, it would boost investors’ confidence in the market as investors can ascertain that what is being valued is actual and nothing is hidden.
He explained that the role of capital market valuers in determining the value of the assets of these companies would ensure transparency, accountability and continued enhancement of investor confidence in the market.
The expert said: “As SEC recognizes us with insistence that all capital market valuations be undertaken by our members, you will rest assured that anytime an operator wants to capitalize or re-capitalize their assets, the valuation reports done by our members will help engender confidence in the process.”
Commenting during the visit, President and Chairman of Council NIESV, Mr. Emmanuel Wike, commended the SEC’s management on the commission’s contributions to the capital market and stressed the need for strengthening the collaboration between the Commission and the professional body.
