The Real Cost of Skipping Professional Property Valuation in Nigeria

Many owners see valuation as an extra bill rather than a necessity. Yet the first place where hidden losses show up is on the balance sheet or in a courtroom. Fights over price, tax, and insurance often begin when no one knows the true worth of a building or plant.

Higher Taxes and Levies

Local governments calculate tenement rates based on assessed value. A flawed figure could mean you’re paying more than neighbours for the same space. Without credible valuation records, tax reforms and fairness become nearly impossible.

Insurance Gaps

Nigeria’s under-insurance problem only becomes visible after a fire or flood. Insurance claims are often trimmed or rejected if the declared value is lower than the true replacement cost. A reliable valuation fixes this gap at the proposal stage and prevents bad surprises later.

Mortgage and Sale Delays

Banks, investors, and courts all depend on signed valuation reports. Property transactions stall when sellers cannot provide a valuation that meets professional standards. Buyers walk away when documentation feels uncertain or incomplete.

How to Avoid the Trap

Use valuers registered with ESVARBON and the Nigerian Institution of Estate Surveyors and Valuers. Update reports every three to five years or after major renovations or upgrades.

A thorough valuation costs far less than the penalties, claim losses, and price disputes it helps you avoid. Treat it as the first line of defence for any asset, not an afterthought.