What is a property valuation and when do you need one in Nigeria?

A property valuation is a formal assessment of a property's market value conducted by a qualified professional. In Nigeria, you typically need a formal valuation: (1) when applying for a mortgage — banks require a bank-instructed valuation to determine how much they will lend against the property; (2) when selling a property, to establish a realistic asking price based on comparable market evidence; (3) in probate and estate administration, to value property for inheritance and tax purposes; (4) in litigation or dispute resolution where property value is in question; (5) for insurance purposes, to establish the reinstatement cost of a building; (6) for accounting and company financial statements where property assets must be declared at fair value; and (7) in compulsory acquisition proceedings where the government is taking land and compensation must be determined. For individual buyers doing their own due diligence, hiring an independent valuer before agreeing a purchase price is good practice — particularly for high-value transactions.

Who can do a property valuation in Nigeria?

In Nigeria, property valuations for formal purposes must be conducted by a Registered Estate Surveyor and Valuer (RESV) — a professional registered with the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) under the Estate Surveyors and Valuers (Registration, etc.) Decree of 1975. Only RESVs are legally authorised to sign valuation reports for use in mortgage applications, court proceedings, and other formal purposes. An estate agent's opinion of value is not a formal valuation and is not accepted by banks for mortgage purposes. When selecting a valuer, check they are registered with ESVARBON and are fellows or associates of the Nigerian Institution of Estate Surveyors and Valuers (NIESV).

Property Valuation in Nigeria: How It Works & Who Does It

A property valuation is a formal, professional opinion of the market value of a property — distinct from a seller's asking price, an agent's rough estimate, or a buyer's personal judgement. In Nigeria, valuations are conducted by registered professionals and are used in mortgage applications, estate administration, litigation, and high-value purchases. Understanding how valuation works helps you deal confidently with banks, valuers, and property professionals.

What is a property valuation?

A valuation is a professional assessment of the market value (or other defined value basis) of a property at a specific date, conducted by a Registered Estate Surveyor and Valuer (RESV). The output is a formal Valuation Report — a signed professional document that states the estimated value and the methodology used to arrive at it.

Importantly: a valuation is not the same as a price. The market value is the price at which a willing buyer and willing seller would transact in an arm's length, open-market sale. It is an evidence-based professional estimate — not a guaranteed selling price.

Who can conduct property valuations in Nigeria?

Only Registered Estate Surveyors and Valuers (RESVs) are legally authorised to sign property valuation reports for formal purposes in Nigeria. The regulatory framework:

ESVARBON: The Estate Surveyors and Valuers Registration Board of Nigeria is the statutory body that registers and regulates estate surveyors and valuers, established under the Estate Surveyors and Valuers (Registration, etc.) Decree 1975.
NIESV: The Nigerian Institution of Estate Surveyors and Valuers is the professional body for the industry — Fellows (FNIVSV) and Associates (ANIVS) are the recognised professional designations.

When hiring a valuer, verify that they are registered with ESVARBON and carry the FNIVS or ANIVS designation. Banks and courts will not accept valuation reports signed by unregistered individuals.

Valuation methods used in Nigeria

Registered valuers use several recognised approaches depending on the property type and purpose:

Comparable Sales (Direct Comparison) Method: The most common method for residential property — the property's value is estimated by reference to recent sales of similar properties in the same area. Adjustments are made for differences in size, condition, location, and features. Requires good market data on comparable sales.
Investment (Income Capitalisation) Method: Used for income-producing properties (rental houses, commercial buildings) — the annual rent is divided by a capitalisation rate (yield) to estimate value. The capitalisation rate reflects the risk and return expectations for that type of property in that market.
Depreciated Replacement Cost Method: Used where direct comparables are limited (e.g., specialist properties) — estimates the cost of building an equivalent property from scratch, adjusted for depreciation. Often used in insurance valuations.
Residual (Development Appraisal) Method: Used for development land — estimates the value of the land as the residual after deducting development costs and developer's profit from the completed development value.

When do you need a property valuation in Nigeria?

Mortgage application: Banks require a valuation instructed by the bank (not the applicant) before approving a mortgage. The bank uses the valuation to determine the Loan to Value ratio and maximum lending. See our mortgage guide.
Pre-purchase due diligence: A buyer can hire an independent valuer before agreeing a purchase price — to verify that the asking price is reasonable relative to market evidence. Particularly valuable for high-value transactions.
Selling a property: Getting a valuation before listing helps set a realistic asking price rather than guessing.
Probate and estate administration: When a property owner dies, a valuation is required to value the estate for probate purposes.
Litigation and dispute resolution: Courts require valuation evidence from RESVs in property disputes, compulsory acquisition cases, and matrimonial proceedings involving property.
Company financial statements: Companies that own property must disclose it at fair value — this requires a formal valuation by an RESV.
Insurance: Building reinstatement valuations (replacing the structure if destroyed) for property insurance purposes.

What a valuation report contains

A formal Nigerian property valuation report typically includes:

The client (who instructed the valuation) and the stated purpose
The property address and description
The date of valuation
Title details (C of O number, file reference)
Inspection details (date inspected, condition noted)
Valuation methodology (which method was used and why)
Comparable evidence (for the comparable method) or yield assumptions (for the investment method)
The valuation figure — typically the Market Value as at the date of the report
Any assumptions and special assumptions (e.g., assuming the property has vacant possession)
The valuer's signature and ESVARBON registration number

Difference between a valuation and an agent's opinion

An estate agent's opinion of value (sometimes called a market appraisal) is informal — it is a view on likely selling price but does not carry the formal weight of a Valuation Report. Banks will not accept an agent's opinion for mortgage purposes. For any formal use (mortgage, legal, accounting), you need a report from a Registered Estate Surveyor and Valuer — not an agent.

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What is a property valuation?

Who can conduct property valuations in Nigeria?

Only Registered Estate Surveyors and Valuers (RESVs) are legally authorised to sign property valuation reports for formal purposes in Nigeria. The regulatory framework:

ESVARBON: The Estate Surveyors and Valuers Registration Board of Nigeria is the statutory body that registers and regulates estate surveyors and valuers, established under the Estate Surveyors and Valuers (Registration, etc.) Decree 1975.

NIESV: The Nigerian Institution of Estate Surveyors and Valuers is the professional body for the industry — Fellows (FNIVSV) and Associates (ANIVS) are the recognised professional designations.

When hiring a valuer, verify that they are registered with ESVARBON and carry the FNIVS or ANIVS designation. Banks and courts will not accept valuation reports signed by unregistered individuals.

Valuation methods used in Nigeria

Registered valuers use several recognised approaches depending on the property type and purpose:

Comparable Sales (Direct Comparison) Method: The most common method for residential property — the property's value is estimated by reference to recent sales of similar properties in the same area. Adjustments are made for differences in size, condition, location, and features. Requires good market data on comparable sales.

Investment (Income Capitalisation) Method: Used for income-producing properties (rental houses, commercial buildings) — the annual rent is divided by a capitalisation rate (yield) to estimate value. The capitalisation rate reflects the risk and return expectations for that type of property in that market.

Depreciated Replacement Cost Method: Used where direct comparables are limited (e.g., specialist properties) — estimates the cost of building an equivalent property from scratch, adjusted for depreciation. Often used in insurance valuations.

Residual (Development Appraisal) Method: Used for development land — estimates the value of the land as the residual after deducting development costs and developer's profit from the completed development value.

When do you need a property valuation in Nigeria?

Mortgage application: Banks require a valuation instructed by the bank (not the applicant) before approving a mortgage. The bank uses the valuation to determine the Loan to Value ratio and maximum lending. See our mortgage guide.

Pre-purchase due diligence: A buyer can hire an independent valuer before agreeing a purchase price — to verify that the asking price is reasonable relative to market evidence. Particularly valuable for high-value transactions.

Selling a property: Getting a valuation before listing helps set a realistic asking price rather than guessing.

Probate and estate administration: When a property owner dies, a valuation is required to value the estate for probate purposes.

Litigation and dispute resolution: Courts require valuation evidence from RESVs in property disputes, compulsory acquisition cases, and matrimonial proceedings involving property.

Company financial statements: Companies that own property must disclose it at fair value — this requires a formal valuation by an RESV.

Insurance: Building reinstatement valuations (replacing the structure if destroyed) for property insurance purposes.

What a valuation report contains

A formal Nigerian property valuation report typically includes:

The client (who instructed the valuation) and the stated purpose

The property address and description

The date of valuation

Title details (C of O number, file reference)

Inspection details (date inspected, condition noted)

Valuation methodology (which method was used and why)

Comparable evidence (for the comparable method) or yield assumptions (for the investment method)

The valuation figure — typically the Market Value as at the date of the report

Any assumptions and special assumptions (e.g., assuming the property has vacant possession)

The valuer's signature and ESVARBON registration number

Difference between a valuation and an agent's opinion