The Executive Secretary/Chief Executive Officer of the Financial Reporting Council of Nigeria, Dr Rabiu Olowo, has noted that the proposed valuation regulations will strengthen the financial landscape in the country.
Olowo stated this at a recently held stakeholders’ engagement session in Lagos.
FRC has developed a draft Valuation Regulations for Financial Reporting that will provide a regulatory framework for valuers offering valuation services for financial reporting in the country. The council called for comments from stakeholders in November.
The FRC leader emphasised that the proposed regulations represent a significant advancement in ensuring that valuations are carried out in a manner that upholds the principles of fairness, transparency, and accuracy.
He said, “They provide a structured approach to valuation that will help standardise practices, mitigate risks associated with subjective judgment, and enhance the comparability of financial statements across entities and jurisdictions.
“By providing clear and concise guidelines on how valuations should be conducted, the regulations ensure consistency in the approach used by different professionals and institutions. This will reduce the room for ambiguity and subjective interpretation.
“The proposed regulations require that the methods and assumptions used in valuations be clearly disclosed. This level of transparency is essential to ensure that stakeholders have a clear understanding of how values were derived and the underlying assumptions.”
He added that by outlining the roles and responsibilities of valuers, auditors, and other key stakeholders, the regulations aimed to improve the accountability of those involved in the valuation process.
“This will foster a culture of accuracy and integrity in financial reporting. The regulations are aligned with international best practices and standards, which are crucial for ensuring that our financial markets remain competitive, credible, and attractive to both domestic and international investors, clear and objective valuation standards help minimize the risks of errors, conflicts of interest, and disputes that can arise from inconsistent valuation practices,” he concluded.
Olowo in his address affirmed that the stakeholder session allowed for input from the industry and would help the Council in arriving at the final regulations.
“We are committed to ensuring that the regulations not only meet the needs of the market but also uphold the principles of fairness, integrity, and trust that are at the core of sound financial reporting,” he concluded.
