The prosperity of any country in most instance is evaluated from the quantum of human and natural resources available at their disposal along with the capacity needed to utilize them productively for meaningful economic development.
Rationally, it is contended that the relative abundance of resources in a given nation does not imply how wealthy they are, especially when there is insufficient knowledge on how to harness it in order to obtain maximum profit with minimum impact on the environment and public health. Nigeria as the most populous black nation is endowed with large deposit of mineral resources lying grossly underutilized.
The underutilisation of these resources could be justified based on the huge concentration on crude oil as the mainstay of the economy. The increasing desire to diversify the Nigerian economy from an oil based one to other areas such as solid mineral development would mean investment into new market for solid mineral resources.
Mineral valuation which integrates credible scientific methods and professional judgment to estimate the market values of resources would be highly required before executing transactions. The maximisation of profit in conjunction with the utility to be derived from the prospective sales of resources would at best be safe when measured on the basis of market forces, and without argument making the expertise of a trained valuer important and relevant.
Estate surveyors and Valuers as professionals in the field of appraisal are equipped with the right educational training and skills to assess the value of economic items at a given point in time when consulted. Their ability to provide services through the application of adequate techniques and methodology such as market capitalisation, depreciated replacement cost and comparative method makes their input valid in the placement of values that are reasonable or fair enough in the mineral resource market.
The potential of having a developed economy will be realized when strategic decisions about sales value of resources are made and guided by the realistic and reliable judgment proffered by estate surveyors and valuers. The rightful determination of mineral value will help the government in ascertaining the appropriate tax and royalty that is payable by licensed miners and associated operatives within the value supply chain.
Having sufficient knowledge about the true value of minerals to be offered for sale at present or future date will prevent financial losses caused by undervaluation. Additionally, the estate surveyor and valuer who also doubles as land economist will ensure the wise utilization of mineral land to serve its highest and best use.
Land owners who are entitled to the payment of compensation due to land contamination or during compulsory acquisition of mineral land will also benefit from the competency of the real estate practitioner who is by law backed to carry out valuation for compulsory land acquisition and compensation in situations where it overrides public interest.
The determination of the fair amount to be paid to land owners will avert the emergence of problems such as agitation which may arise and affect economic development in the long run due to outbreak of civil unrest or attacks. Mineral valuation is fundamental towards actualizing economic development especially for a country like Nigeria anticipating to expand its economic base.
The government through the advice of experienced valuers will increase their competitive advantage in the world trade when acquiring or disposing mineral resource products. The role of mineral valuation cannot be overlooked as the knowledge of value will inform sound tax decision, minimize unprofitable sales transaction and provide for equity in the payment of compensation for owners of affected land.
Ekundayo Ezekiel A. Ajala,
Suite C11, Second Floor, Fodio Plaza, Western Bye Pass, Minna, Niger state
08037042787
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