Valuers must lead disposal process of failed banks’ assets — ESV John Odey

By Mashe Umaru Gwamna

An Estate Surveyor and Valuer, ESV John Odey, has called for professional Estate Surveyors and Valuers to take the lead in the disposal of assets belonging to failed banks, stressing that their expertise is critical to ensuring transparency, accountability and value for money.

Odey made the call yesterday in Abuja while speaking on the proper management and disposal of assets belonging to failed financial institutions.

He explained that a failed bank is one that is unable to meet its obligations to customers, creditors and the economy at large. According to him, when a bank fails, the Central Bank of Nigeria (CBN) revokes its operating licence, while the Nigeria Deposit Insurance Corporation (NDIC) is appointed as liquidator in accordance with the law to wind up the assets and liabilities of the affected bank.

He noted that the NDIC is expected to dispose of the bank’s assets in a cost-effective manner and in the best interests of uninsured depositors, creditors and shareholders.

“In performing its role of realising the assets of a failed bank, the NDIC relies on the services of valuers to value the asset before disposal of the assets of such troubled banks,” he said.

Odey, however, stressed that the expertise of Estate Surveyors and Valuers is indispensable to the process, particularly because of their in-depth knowledge of the property market and ability to determine the true market value of assets.

He said the engagement of professional valuers would enable the Corporation to secure the best possible value from the disposal of properties and other real estate assets of failed banks.

“The services of valuers are needed because of their depth of knowledge of the property market and to enable the Corporation to get the best value for money,” he said.

He further emphasised the need for transparency and accountability in the valuation for disposal process, warning that reliance on unqualified practitioners could expose the assets and funds of failed banks to abuse.

“It is important to use a valuer because of transparency and accountability. Engaging quacks could result in the diversion or loss of funds belonging to failed banks,” Odey warned.

He therefore urged the NDIC and other relevant authorities to prioritise the engagement of duly registered and qualified Estate Surveyors and Valuers in the valuation for disposal of failed banks’ assets.