Dr Rabiu Olowo, the Executive Secretary/Chief Executive, Financial Reporting Council of Nigeria, has said a credible valuation system remains key to achieving the present administration’s ambition for $1 trillion- economy by 2026.
This was as it restated its dedication to adopting and implementing global valuation standards to fortify investor confidence and amplify the country’s competitive edge internationally.
Olowo noted that evidence had shown a firm connection between valuation and global competitiveness in business, helping to attract investors as well as improving credible financial reports.
He made this known during a courtesy visit by Nicholas Talbot, the CEO of the International Valuation Standard Council, in Abuja.
The IVSC serves as an independent global standard setter for the valuation profession, with a mission to elevate the standards of international valuation practice, thereby enhancing the integrity of the financial system to benefit both capital markets and the public interest.
Olowo said in a statement characterised the visit as a testament to Nigeria’s significance in the global valuation market, underscoring the critical nature of harmonising the nation’s valuation standards with international best practices.
He said that, the council’s dedication to this endeavour stems from its recognition of the crucial link between credible financial reporting, investor confidence, and the nation’s economic growth goals.
Rabiu stated, “So for us, Valuation is at the core of our mandate and we’re very excited to have them here. You know, the work that valuation professionals do is significant to the economy, whether you have a valuation of assets, receivables or anything of its kind, you find that it’s key to every financial reporting principle and the governance process.
“So at the end of the day, once investors have confidence in the business that we do here and how we value our balance sheet, it will promote that confidence. And at the end of the day, it’s going to have a catalytic effect on the economy. And our hopes of achieving the $1 trillion economy will only be a matter of time.”
Olowo stated that the establishment of a Directorate of Valuation Standards in the council was aimed at ensuring that Nigerian businesses adhere to international benchmarks for transparent reporting.
In his remarks, the IVSC CEO commended the FRC for the establishment of a Directorate of Valuation standards for credible financial reporting which would boost investor confidence in driving economic growth towards Nigeria’s $1 trillion economy goal.
Talbot noted that what investors look for, whether they’re domestic investors or international investors, is confidence. And key to confidence is having a stable financial system.
“The key to investors’ confidence is having a stable financial system but also an approach where you understand it from an external investor point of view. Imagine a world where there were 195 different approaches to valuation.
“It would make it very difficult for investors to decide where to invest. So the fact that Nigeria uses international valuation standards and the regulators are looking at strengthening that approach in terms of their oversight is only going to give more confidence to investors which will help move you to the $1 trillion dream faster.”
