Valuers' perception of the effect of client influence on valuation practice

The literature indicates that valuers yield to client influence to bias valuations. Studies also show that client influence has several effects on valuation practice. This study investigated valuers' perception of the effect of client influence on valuation practice with the objective of determining whether the perception differs for valuers of different characteristics. The investigation focused on secured lending valuations in Nigeria. The research design was cross-sectional survey. The sample comprised 270 valuation firms selected through the stratified random sampling design. Data collection utilised questionnaire structured on 5–point Likert format. Data analysis employed mean statistics and Kruskal-Wallis test. The results revealed that valuers perceive that client influence undermines integrity of the valuers; the valuation firm and the valuation profession; as well as questions valuers' expertise and, constrains the development of the valuation profession. This perception is the same irrespective of the characteristics of the valuer. It can be inferred that valuer characteristics are not important in explaining valuers' perception of the effect of client influence on valuation practice. The policy implication of the research is the necessity for the regulatory agencies to review valuation practice standards to institute measures to check the intervention of clients in valuations. The limitation of the research is that it investigated only valuers. It suggests that research be conducted on the subject from clients' perspective.Keywords: Client influence; valuation; bias valuation; valuer characteristics; valuation practic

Measuring housing affordability: the two approaches

Measuring housing affordability has become an important field of research and an essential step in housing policy response. Through a review of previous studies from the early 1990s, this study provides a description of the two main approaches to measuring affordability – the ratio and the residual income measures. The objective is to present descriptions of the measures from the perspectives of different authors and the ongoing debate on their relative suitability as affordability measures. The review revealed lack of consensus on the most suitable approach. Some researchers advocate replacement of the ratio approach with the residual income approach while some argue for continued use of the ratio approach. Yet others advocate modified measures that account for the short-comings of the two main measures. Some scholars have actually developed and applied such modified measures. By bringing the diverse views of scholars on the subject over a relatively long period to a single platform, the paper has made valuable contribution to the housing affordability literature. The implication for research is the need to develop methodologies for measuring housing affordability which reflect the housing market practices of developing countries.Keywords: Housing affordability; housing costs; housing expenditure-to-income ratio; ratio approach; residual income approac

Credit Risk Mitigation with Real Estate Collaterals in Nigeria’s Commercial Banks

The practice of posting collaterals to mitigate credit risk is commonplace in bank lending. Real estate is an important collateral instrument especially in developing countries. This study investigated credit risk mitigation with real estate collaterals by commercial banks in Nigeria to establish if real estate is a reliable collateral instrument, the role of real estate valuation and the key issues the banks consider in the process. Response was elicited from a sample of commercial banks in a cross-sectional survey with a structured questionnaire. Data analysis employed descriptive statistics. Findings indicate that real estate is a very reliable collateral instrument and that its valuation is a significant aspect of the risk mitigation process. The reliability of valuation opinion is the most important expectation of the banks from the valuers and the banks are satisfied with valuation advice provided by valuation firms. The banks consider the reputation of the borrower the most important factor to mitigate credit risk with real estate collateral and the quality of borrower’s title to the real estate the most important aspect of the collateral instrument for risk mitigation. Overall, the findings suggest negligence and inadequate due diligence on the part of the banks in the process of credit risk mitigation with real estate collaterals. There is need for adequate documentation of real estate titles and transactions for more efficient risk mitigation practice. Key words: Bank lending, Credit risk mitigation, Collateral, Nigeria; Real estate, Secured lendin

The Application of Real Estate as Loan Collateral in Nigeria’s Banking Sector

The recent reforms in Nigeria’s banking sector have underscored the need for due diligence in lending. The study investigates the application of real estate as loan security to establish the extent and process of its use by commercial banks in Nigeria. Questionnaire survey was used to elicit response from a sample of commercial banks selected randomly. The findings demonstrate that real estate is the most widely used collateral instrument and banks follow due process in its application as collateral. However, the use is hindered by documentation and foreclosure problems. The findings are consistent with literature that real estate plays a significant role in secured lending, especially in developing countries. Overall, the borrower’s title to the collateral, the nature and quality of the title as well as the value of the real estate are important considerations when banks apply real estate as loan collateral. Thus, real estate, and especially property values, land titles and records are significant factors in contemporary Nigeria’s bank lending and with the greater emphasis on the security of credit, real estate is likely to assume even more vital role. Key words: Bank lending, Banking sector, Collateral, Real estate, Secured credit transaction

The evolving SARS-CoV-2 epidemic in Africa: Insights from rapidly expanding genomic surveillance

INTRODUCTION Investment in Africa over the past year with regard to severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) sequencing has led to a massive increase in the number of sequences, which, to date, exceeds 100,000 sequences generated to track the pandemic on the continent. These sequences have profoundly affected how public health officials in Africa have navigated the COVID-19 pandemic. RATIONALE We demonstrate how the first 100,000 SARS-CoV-2 sequences from Africa have helped monitor the epidemic on the continent, how genomic surveillance expanded over the course of the pandemic, and how we adapted our sequencing methods to deal with an evolving virus. Finally, we also examine how viral lineages have spread across the continent in a phylogeographic framework to gain insights into the underlying temporal and spatial transmission dynamics for several variants of concern (VOCs). RESULTS Our results indicate that the number of countries in Africa that can sequence the virus within their own borders is growing and that this is coupled with a shorter turnaround time from the time of sampling to sequence submission. Ongoing evolution necessitated the continual updating of primer sets, and, as a result, eight primer sets were designed in tandem with viral evolution and used to ensure effective sequencing of the virus. The pandemic unfolded through multiple waves of infection that were each driven by distinct genetic lineages, with B.1-like ancestral strains associated with the first pandemic wave of infections in 2020. Successive waves on the continent were fueled by different VOCs, with Alpha and Beta cocirculating in distinct spatial patterns during the second wave and Delta and Omicron affecting the whole continent during the third and fourth waves, respectively. Phylogeographic reconstruction points toward distinct differences in viral importation and exportation patterns associated with the Alpha, Beta, Delta, and Omicron variants and subvariants, when considering both Africa versus the rest of the world and viral dissemination within the continent. Our epidemiological and phylogenetic inferences therefore underscore the heterogeneous nature of the pandemic on the continent and highlight key insights and challenges, for instance, recognizing the limitations of low testing proportions. We also highlight the early warning capacity that genomic surveillance in Africa has had for the rest of the world with the detection of new lineages and variants, the most recent being the characterization of various Omicron subvariants. CONCLUSION Sustained investment for diagnostics and genomic surveillance in Africa is needed as the virus continues to evolve. This is important not only to help combat SARS-CoV-2 on the continent but also because it can be used as a platform to help address the many emerging and reemerging infectious disease threats in Africa. In particular, capacity building for local sequencing within countries or within the continent should be prioritized because this is generally associated with shorter turnaround times, providing the most benefit to local public health authorities tasked with pandemic response and mitigation and allowing for the fastest reaction to localized outbreaks. These investments are crucial for pandemic preparedness and response and will serve the health of the continent well into the 21st century