Here’s a quick rundown:
- The Warning: Tax reforms need accurate asset values to work.
- The Expert: Victor Alonge of NIESV is leading the charge.
- The Goal: Raising awareness of valuation’s importance in Nigeria.
- The Big Picture: Nigeria lags in valuing its national assets.
Nigeria’s Tax Reforms: A House Built on Sand?
The Nigerian government is working hard to revamp its tax system, aiming for greater efficiency and increased revenue. But according to Victor Alonge, President and Chairman of the Council of NIESV, there’s a critical piece missing: accurate asset valuation.
Who is Victor Alonge and Why Should You Care?
Victor Alonge isn’t just any expert. As the head of NIESV, he represents a body deeply involved in setting valuation standards, not just in Nigeria, but globally. NIESV is a member of the International Valuation Standards Council, a group with over 200 member organizations across 137 countries. They’re the real deal when it comes to knowing what an asset is really worth.
The Core Issue: Knowing What Things Are Truly Worth
Alonge argues that before you can tax an asset, you need to know its true value. This isn’t just about slapping a random number on a property or a piece of equipment. It’s about a professional, reliable assessment that reflects the real market value.
Nigeria’s Valuation Deficit: A Call to Action
Alonge points out that Nigeria is currently behind in conducting credible valuations of its national assets. While he acknowledges that steps are being taken, he insists that much more needs to be done. This isn’t just about ticking a box; it’s about laying a solid foundation for economic growth.
Why Accurate Valuation Matters: More Than Just Taxes
Accurate asset valuation isn’t just about collecting taxes. It’s crucial for:
- Attracting Investment: Investors want to know what they’re buying into.
- Securing Loans: Banks need reliable valuations to assess collateral.
- Effective Governance: Governments need to understand the value of their assets for planning and development.
NIESV’s Role: Advocacy and Awareness
NIESV is on a mission to raise awareness about the importance of valuation. They’re actively engaging with both the public and private sectors to promote the idea that valuation should be a key consideration in policy decisions.
The Bottom Line: Valuation is Non-Negotiable
Nigeria’s tax reforms have the potential to transform the nation’s economy. But without a strong foundation of accurate asset valuation, these efforts risk falling short. It’s time for Nigeria to prioritize valuation and unlock its true economic potential.
The Bigger Picture: Global Valuation Standards
The International Valuation Standards Council (IVSC) plays a vital role in promoting consistent and transparent valuation practices worldwide. Nigeria’s involvement through NIESV demonstrates a commitment to aligning with global best practices.
What’s Next?
Expect to see NIESV stepping up its advocacy efforts, pushing for greater awareness and adoption of valuation best practices across Nigeria. The future of Nigeria’s tax reforms may depend on it.