ADEQUACY OF LEGAL PROVISIONS ON VALUATION OF WETLAND FOR COMPENSATION IN THE NIGER DELTA, NIGERIA

Compensation assessment is legal issue based on the provisions of the enabling laws and this has taken valuation for compensation out of the purview of the general basis for valuation. Series of arguments as regard the adequacy of the figure of compensation had been put forward, however this study examined the adequacy of the provisions for compensation contained in the various laws in Nigeria with respect to wetland valuation for compensation. Exploratory approach was employed in carrying out the study, that is, compensation provisions of the various laws were reviewed. The study established that wetland ecosystems are composed of both use and non-use goods/services. While compensation provisions were made for use goods (the Nigerian Constitution, Oil Pipeline Acts and the Land Use Act variously made provision for assessment and payment of compensation on land, buildings and crops), no provision was made for non-use goods which constitute a large proportion of wetland resources. To achieve the principle of justice and equity that constitute the fulcrum for compensation, the study recommends an overhaul of the laws relating to assessment of compensation payable to take account of the fact that a claimant loses more than goods that are traded in open market. In other words, the non-use components of wetland resources should be adequately provided for in the laws relating to compensation assessment

CHALLENGES OF VALUING WETLAND RESOURCES FOR COMPENSATION IN THE NIGER DELTA, NIGERIA

The concern for wetland valuation is the determination of appropriate compensation payable to the affected claimants. In the conduct of wetland valuation, the Estate Surveyor and Valuer is faced with a myriad of challenges and this study therefore examines the challenges involved in the conduct of wetland valuation exercise in the study area. Questionnaire, personal and telephone interviews were employed in collecting the primary data used for this study. A total of 72 questionnaire was retrieved and used for the study. The data collected was analysed and presented using frequency distributions and percentages and relative importance index (RII). The study revealed that valuing wetland resources is fraught with challenges such as lack of data (87.3%, RII = 3.84), complex wetland ecosystems (80.0%, RII = 3.75), inadequate government policy (69.1%, RII of 3.29), sophisticated survey design (63.6%, RII = 2.35) and hostility from residents within and around wetlands (32.7%, RII = 2.36). The study therefore recommends collaboration between the professional body and government to provide data bank for the valuation of wetland resources, federal government to formulate policy for wetland use and management, compelling the multinational oil companies to adopt contemporary (environmental) valuation methods in the determination of compensation payable to claimants. Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) should mandate Institutions offering Estate Management courses to include environmental valuation as a course, rather than treating it as a topic, as is currently done in majority of the universities

Valuing Green Buildings in Nigeria: Issues and Challenges

Valuation of green buildings is fast becoming a reality in real estate market hence the need for its awareness, knowledge and expertise by Estate Surveyors and Valuers. The need to be savvy in this area is due to sensitivity which green buildings may impact on value in the market place. Estate Surveyors and Valuers are professionally equipped to assess the worth of real estate investments, however, they require special knowledge of green buildings to be able to ascribe value as appropriate. This study identified the challenges involved in the valuation of green buildings as absence of buildings with green features culminates to lack of data to help in the valuation of such buildings. In the same vein, absence of rating organisations in the country and non-inclusion of green building valuation in curriculum of estate management progammes may also pose serious problem. The study, which was quantitatively conducted, concluded that urgent attention is required in the value enhancement of green features in the valuation assignments in Nigeria

Importance of Accessibility to Reliable Data for Real Estate Practice

Availability of and accessibility to accurate, reliable and timely data is germane to the operation of the property market, in the field of estate surveying and valuation either for valuation/appraisal, management and agency purposes. In this study, the researcher examines the factors militating against accessibility to such data. The study was conducted using questionnaires, administered on practicing Estate Surveyors and Valuers, within Lagos Metropolis. 190 questionnaire was retrieved out of 300 questionnaire (i.e. 63%) administered on the respondents selected from the Nigerian Institution of Estate Surveyors and Valuers’ Directory and this was used for the analysis. The study revealed that inaccessibility to reliable data is a major barrier to valuation consistency. The study further revealed that there is the need for members of the Nigerian Institution of Estate Surveyors and Valuers, just like their counterpart in RICS,UK, to join hands together and create a strong databank comparable to that of the Investment Property Databank (IPD). The databank created as such should therefore be available and accessible to anyone that requires such information, even at a token

Real Estate Investment Trust:An Attractive Investment Vehicle for Real Estate Development in Nigeria

Real estate development requires huge capital outlay, which in many instances cannot be provided by one person or be obtained from only one source. Sourcing fund traditionally, (equity and loans), had proved inadequate over time. For this reason, there is need for better sources of financing real estate development in Nigeria. This study examines the suitability of real estate investment trusts [REITs] in financing real estate development in Nigeria. Five hundred copies of questionnaire were administered on Estate Surveyors and Valuers, Real Estate Developers, Primary Mortgage Institutions [PMis], Nigerian Stock Exchange (NSE); and Security and Exchange Commission (SEC). Frequency tables and percentages were used in analyzing data collected. The study reveals that inadequate real estate finance constituted most critical problem to real estate development in Nigeria. It further shows that there is a large real estate market in Nigeria to support the application of REITs. However REITs, which has been found to adequately meet such capital requirements in developed countries, is still unpopular in Nigeria. The study also reveals that for REITs to flourish in the Nigerian real estate development and capital markets, government would have to improve on legal and institutional frame works, establish and support the secondary mortgage market, ensure a stable economic environment and hasten the process of granting real estate title documents

DATA SHARING : A CRITICAL FACTOR FOR ESTATE SURVEYING AND VALUATION PRACTICE IN NIGERIA

The study examines the barriers to data accessibility on the operation of the property market, in the field of estate surveying and valuation. The study was conducted using questionnaires, administered on practicing Estate Surveyors and Valuers, within Lagos Metropolis. The study revealed that lack of data sharing is a major barrier to valuation consistency, particularly with transactions on residential ‘properties where evidence of past transactions are very important. The study further revealed that members of the Nigerian Institution of Estate Surveyors and Valuers need, just like RICS, UK, join hands together and create a strong databank just like the Investment Property Databank (IPD),that can be used by anyone that require such information, even at a token

ASSESSMENT OF ACCURACY OF VALUATION IN THE PROPERTY MARKET IN LAGOS METROPOLIS

Valuation is not a precise science and therefore assessment of the worth of interests in properties bears some subjective inputs which manifests in discrepancies in value that is often realised at the eventual reality of market-confirmed ‘assessment’ upon sale. Previous studies had established that there was valuation inaccuracy everywhere in the world, including Nigeria. This study examined the causes of such inaccuracies. Survey approach was used in carrying out the study and a total of 150 questionnaires were administered on respondents randomly selected from the Nigerian Institution of Estate Surveyors and Valuers (NIESV) Directory. Analysis of the data collected revealed that valuation inaccuracy in Lagos Metropolis result from the dearth of market evidence (data), use of outdated valuation approach, inadequate academic training, inexperience in valuation practice and clients’ influence. The study therefore recommends that NIESV should establish central databank and intensify efforts on Mandatory Continuing Professional Development (MCPD) so as to keep members updated on contemporary methods of valuation

ASSESSMENT OF WETLAND VALUATION PROCESSES FOR COMPENSATION IN THE NIGER DELTA, NIGERIA

The issue of compensation has been debated in various fora; however compensation on wetland resources has not been given the primary place. Wetland valuation like any other type of valuation requires going through stages, which may be more complex than real estate valuation for compensation. This study therefore examined the processes involved in the valuation of wetland resources for compensation purposes with a view to establishing whether or not Estate Surveyors and Valuers in the Niger Delta follow the appropriate steps in the conduct of wetland valuation. The study employed survey method in collecting primary data. A total of 120 questionnaires were administered on selected Estate Surveying and Valuation firms in Bayelsa, Delta and Rivers States, out of which 72 of them were retrieved. The data collected were analysed and presented using frequency distributions and percentages. The study showed that Estate Surveyors and Valuers in the study area follow all steps however with 3.6% involved in determining wetland area. This may affect the correct determination of the extent of damage done to wetland ecosystems. The study further revealed that that only 5.5% of the respondents took any course in environmental valuation during their undergraduate school days. They may not be able to properly appreciate of importance of wetland resources. The study therefore recommends that practicing Estate Surveyors and Valuers would need to update their knowledge since wetland valuation for compensation has become a serious issue in the Niger Delta

Assessing The Effects Of Flooding On Residential Property Values In Lekki Phase I, Lagos, Nigeria

Various studies had identified location, neighbourhood characters, property characters and environmental characters as factors affecting property values. Flooding in most cases are natural occurrence that damages life and properties whenever it occurs. Lekki Phase I, having experienced consistent flooding over the years, this paper therefore examines the effect such occurrences on residential property values in the neighbourhood. The study was carried out using survey approach. A total of 200 copies of the questionnaire were administered on the residents while 126 copies were retrieved (63%). Also, a total of 81 questionnaires were administered on Estate Surveyors and Valuers within Victoria Island and Lagos Island axis and 43 (53%) were retrieved. The data collected was analysed using both descriptive and inferential statistical tools. The study found that almost 70% of the properties are owner occupied; prominent causes of flood are drainage problems and rise in sea level. The study further found that there is disparity in rental values of properties in flooded and non-flooded areas. The paired sample t-test conducted showed that there is statistically significant relationship between four pairs of the properties. The study therefore recommends that construction of drainage channels should be made wide enough to drain a large quantity of water