Identifying Gaps in The Act Of 1975 and the Effect on the Practice of Estate Surveying and Valuation in Nigeria

ESV MADUFOR EDWIN UCHENNA

For any discipline to graduate into a profession a body recognized by law and set up by an Act of parliament or a decree must be in existence to regulate the activities of the members and its relationship with other professional bodies.

In Nigeria there exist several professional bodies which are recognized by the Government of which the Nigeria Institution of Estate Surveyors and Valuers is one of such professional body and is controlled by the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON).

Although the practice of Estate Surveying and Valuation has been in existence since the medieval times, it came in to Nigeria in 1954 and took effect in 1969 but gain recognition in 1975 by promulgation of Decree 24 of 1975 (now cap 111) by the Federal Government of Nigeria, which gave birth to the Estate Surveyors and Valuers Registration Board of Nigeria and many practicing firms were now registered to practice as Estate Surveyors and Valuers in the country which growth was so systematic and rapid that many desired to become Estate Surveyors.

The Board and the institution were by law supposed to work hand-in-hand to control and regulate the practice of the profession whose functions are enshrined into the constitution of the Nigeria Institution of Estate Surveyors and Valuers. Viz: –

1. Determining the value of’ all description of property and of various interest therein.
2. Management and developing, estates and the business concerns with the management of landed property.
3. Securing the optimal use of land and its associated resources to meet social and economic needs; among others.
4. Determining the structure and condition of building and their services and advising on their maintenance alteration and improvement.
5. Determining the economic use of land resources by means of financial appraisal for the building industry and;
6. Selling (whether by action or otherwise) and buying or letting (as an agent) if real and personal property and of an interest therein.
   The Board is charged with the following responsibilities.
   i. To determine the standards of knowledge to be attained by a person seeking to become a registered Estate Surveyor and Valuer.
   ii. To establish and maintain a register of persons entitled to practice as Estate Surveyors and Valuers and publish from time to time the lists of such persons.
   iii. To regulate and control the practice of Estate Surveyors and Valuation profession in all its ramification.
   iv. To determine who is an Estate Surveyor and Valuer for the purpose of the decree.
   v. To perform other functions conferred on the board by the Act. According to Hemuka (1996),” a quack is a person who has no formal training in Estate Management and who by Decree No 24 of 1975 is not registered as an Estate Surveyor and Valuer to practice the Profession.” In recent times there seem to have been an unprecedented upsurge in the number of’ non-professionals infiltrating into the profession.” It is however the consensus among the people that all those who practice without the required training could be regarded as quacks, according to them “they only strayed into the profession’’.

The influx of people into the major cities calls for a high demand of good residential accommodations which already are in short supply and as the influx of person continue to increase, real estate activities become the business of the day to both professionals and non-professional (quacks) which automatically create a stiff context to possess the market. Meanwhile the Estate Surveying and Valuation profession is not the newest profession in the country but the scope of the profession is very wide and as such vulnerable to encroachment by quacks who have no stake in the profession though their ranges of services over the years are yet to be fully understood by the public. Public’s ignorance about the functions of the Estate Surveyor and Valuer has been traced to the fact that his activities do not easily exhibit his skills like the Architect who is associated with buildings designed by him or the Engineer who is associated with the roads or bridges built by him. While the Wig clearly identifies the lawyer; the stethoscope does the same to the Doctor, there is no similar feature by which one can easily identify an Estate Surveyor and Valuer. At the government ministries, he is called a “land officer” at the bank he is a “property manager/officer or “premises manager” it is only those in private practice that are addressed as Estate Surveyors and Valuers.

Today, Lawyers dominate agency in preference to the Bar where they belong. Engineers took steps to become valuers claiming that valuation of plant and machinery was an engineering right. Accountants and some so-called Management consultants took over feasibility and viability studies. Bank Managers got a wind from some quacks that they too can carry out valuation; with this belief mortgage valuations were given to bank officers to carry out so as to “save” their clients the highest professional fees from the so-called valuers.
ISSUES WITH THE PRACTICE OF ESTATE SURVEYING AND VALUATION.
Ifediora (2000) in a paper presented at a CPD seminar on the Valuation and Appraisal practice for the Real Estate Industry in the new millennium said that the valuation and appraisal practice and profession in Nigeria is young (founded in 1969) but has shown substantial growth and development. Though he pointed out that “Real Estate industry in Nigeria has not lived up to expectation”. Like the Nigerian society which it is part of and its beset by many inadequacies and problems, among them are;
Poor awareness of existence of such profession by the timing population of Nigeria.
None display of ethical conduct in execution of service by most surveyors
Professional misconduct and fraud by members.
Lack of adequate recognition by the authorities
Competition with non-professionals in some aspects of the profession.
Failure to develop professional tools, information and data- base for real estate valuation and appraisal apart from using those inherited from United Kingdom, parry valuation table for example.
Other professionals laying claim to some areas of valuation practice- Engineer on mineral, plant and machinery valuations, accountants on asset valuation and lawyers on agency and all comers on management of real estate.
Failure to identify basis for assessment of compensation for crops, economic trees fish ponds except those arbitrary rates fixed by government or the acquiring authorities.
Lack of power and ability to influence national policy even on real estate matter. The Estate Surveyors and Valuers (Registration, etc) Act 24 of 1975 was signed into law on the 29th day of August 1975. This gave legal backing and recognition to the profession in Nigeria as well as formed a basis for the regulation of the Estate Surveying and valuation profession.
The real estate profession in Nigeria has not lived up to expectation, like in all other spheres of national life where government is to provide leadership, direction and control; it has been a matter of muddling through. The profession is beset by several problems; the act could have done better in curbing, if the provisions had been sufficient and more protective.
Conclusively, thi calls for a review of the Act. The current effort by NIESV in appointing a constitutional review committee is a welcome development while effort to ensure that the Act is re-enacted to achieve its purpose. The ability of our real estate profession to cope will depend on the response of the government; the members of the positive discipline attributes that engender learning research experience integrity, high ethical standards and leadership. For the real estate profession to be relevant in the present dispensation the public must have credibility in the profession in our persons, our tools, methods and techniques, and the profession must cultivate a power and influence commensurate with the profession of the land.
RECOMMENDATIONS:
The following policy recommendations aimed at putting back the Estate Surveying and Valuation practice to its rightful position are proffered.
Estate Surveyors and Valuers should update their tools and techniques, undertake research studies and be bolder about marketing, and undertaking jobs that come under their scope of professional responsibilities.
The provisions of the Act as regards penalty for professional misconduct and offence under is insufficient.
Nigeria is good at making policy/laws but lacks the will power to implement them. It should be pointed out that if such penalties are enforced. It will go a long way in checking professional misconduct and quackery.
The Nigerian Institution of Estate Surveyors and Valuers should lobby or pressurize the concerned office in the Government to review and enact legislation that could provide more employment opportunities for the Estate Surveyor and Valuer. They should borrow a leaf from the lawyers and engineers. In the case of lawyers, no non-lawyers can be heard in a court of law.
Estate Surveyors and Valuers should imbibe clinical decency and commit themselves to the code of practice and hold on to its values and standards. They should accept professional honesty in their practice.
The Estate Surveyors and Valuers (Registration, etc) Act 1975 should be reviewed for effective regulation and elimination of quackery in the profession.
A continuing professional Development should be held by the NIESV for the purpose of acquainting the Nigerian Estate Surveyor and Valuer with the provision of the Act from its very first provision to the last.
The NIESV should ensure that communiqué issued at the end of their various conferences/CPD be implemented.
The Act which was promulgated in 1975, about 50 years ago is due for review and should be reviewed for effective regulation of what goes on in the professional practice.