The Growing Trend of Artificial Intelligence in Property Valuation in Nigeria

ESV George Ofuani,

The adoption of artificial intelligence (AI) within the valuation profession is gaining momentum globally, and Nigeria is gradually beginning to explore its potential. As the real estate sector expands alongside rapid urbanisation, the need for efficient, accurate, and transparent valuation processes has become more pronounced. AI presents an opportunity to enhance traditional valuation methods, though its integration in Nigeria remains at an early stage.

AI in property valuation primarily involves the use of algorithms and machine learning models to analyse large datasets and generate value estimates. These systems, often referred to as Automated Valuation Models (AVMs), rely on historical transaction data, property characteristics, location factors, and market trends. In more advanced markets, such models are routinely used to support mortgage lending, portfolio analysis, and taxation assessments. In Nigeria, where valuation practice has traditionally depended on manual analysis and professional judgement, AI offers the potential to improve both efficiency and consistency.

One of the key advantages of AI in valuation is its ability to process vast quantities of data in a short time. Nigerian property markets, particularly in cities such as Lagos, Abuja, and Port Harcourt, are highly dynamic, with values influenced by factors such as infrastructure development, economic conditions, and population growth. AI tools can incorporate these variables in real time, allowing valuers to produce more current and data-driven assessments. This may be particularly beneficial in addressing issues of information asymmetry, where reliable market data has historically been difficult to obtain.

Furthermore, AI has the potential to enhance transparency in valuation practices. In Nigeria, concerns have occasionally been raised regarding inconsistencies in valuation outcomes due to subjective judgement or limited data availability. By standardising certain aspects of the valuation process, AI models can provide a clearer audit trail, showing how inputs translate into value conclusions. This may improve confidence among stakeholders, including investors, lenders, and regulatory bodies.
However, the adoption of AI in Nigerian valuation practice is not without challenges. A significant limitation is the availability and quality of data. Effective AI systems depend on comprehensive, accurate, and well-structured datasets. In Nigeria, property transaction data is often fragmented, with limited centralised databases and inconsistent record-keeping. Without reliable data inputs, AI-generated valuations may lack accuracy, undermining their usefulness.

There are also professional and regulatory considerations. Valuation is a regulated profession in Nigeria, overseen by bodies such as the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON). The introduction of AI raises questions about professional accountability, ethical standards, and the extent to which automated systems can substitute human expertise. It is generally recognised that AI should function as a support tool rather than a replacement for qualified valuers, who bring critical judgement, local knowledge, and professional responsibility to the process.

In addition, there may be resistance to technological change within the profession. Many practitioners may lack the technical skills required to implement or interpret AI systems, highlighting the need for training and capacity building. Investment in digital infrastructure and education will therefore be essential to facilitate adoption.

In conclusion, AI has the potential to significantly transform valuation practice in Nigeria by improving efficiency, accuracy, and transparency. However, its successful implementation will depend on addressing data limitations, developing appropriate regulatory frameworks, and ensuring that valuers are equipped to integrate technology into their work. Rather than replacing professional expertise, AI should be viewed as a complementary tool that enhances the quality and reliability of valuation services in a rapidly evolving property market.
George Ofuani is a registered Estate Surveyor and Valuer