Valuation crucial for securing bank loans -ESV Akasseh Mathias

By Mashe Umaru Gwamna

An Estate Surveyor and Valuer, ESV Akasseh Mathias, has stressed the importance of professional property valuation in securing bank loans, describing it as a critical requirement for collateral assessment.
Speaking in Abuja, Mathias explained that valuation is the process of determining the current monetary worth of a property or any interest in property for a specific purpose and at a particular date.
According to him, valuation involves assessing the economic value of an asset, business, investment, liability or property by a qualified professional authorised to carry out such assessments.
He noted that valuation is exclusively undertaken by Estate Surveyors and Valuers, who are legally recognised to assess the value of land, buildings and other interests in landed property.
“Estate Surveyors and Valuers are the only professionals legally empowered to carry out valuation of land, buildings and other interests in landed property. Their practice is backed by the Estate Surveyors and Valuers Registration Act, Cap E13, Laws of the Federation of Nigeria 2004, formerly Decree No. 24 of 1975,” he said.
Mathias explained that with the current economic challenges in Nigeria, many individuals and businesses seek financial support from banks, making property valuation an essential step in the loan approval process.
He said banks often require collateral before granting loans to minimise the risk of default.
“Whenever a customer approaches a bank for a loan, the bank may request collateral. To determine the value of the property offered as collateral, the bank engages a firm of Estate Surveyors and Valuers to provide professional valuation advice,” he said.
He further explained that where the collateral is landed property, the valuer first examines the title documents to verify their authenticity and confirm that the applicant is the rightful owner or has the legal authority to use the property as collateral.
According to him, the valuation process also involves a physical inspection of the property to obtain measurements, assess the level of completion, examine the quality of construction materials and collect market data from comparable properties within the neighbourhood.
“After completing the inspection and analysis, the Estate Surveyor and Valuer prepares a valuation report, signs and seals it before forwarding it to the bank that requested the valuation,” Mathias said.