Valuers' perception of potential sources of inaccuracy in plant and machinery valuation in Nigeria

Abstract

Purpose

From the perspective of plant and machinery valuation, this paper aims to assess the factors that constrain accuracy in plant and machinery valuation in the Nigerian context.

Design/methodology/approach

This paper is based on the technical, economic and market infrastructure affecting machinery and equipment valuation in Nigeria and surveyed 150 practicing firms in Lagos to elicit from them what they believe are the major constraints to valuation accuracy.

Findings

The findings reveal that, due to lack of specialization in machinery and equipment valuation, very few valuers have sufficient knowledge content to engage in the exercise. Four significant factors are established to be contributing most to valuation inaccuracy.

Originality/value

This study is the first on inaccuracy in machinery and equipment valuation, and consequently highlights the need to equip Nigerian valuers to face the challenges of the expertise required in this specialized area of valuation.

Citation

Otegbulu, A. and Babawale, G.K. (2011), "Valuers' perception of potential sources of inaccuracy in plant and machinery valuation in Nigeria", Property Management, Vol. 29 No. 3, pp. 238-261. https://doi.org/10.1108/02637471111139419