An Examination Of Problems And Prospect Of Valuation Of Assets Of Pubic Bodies In Enugu State

AN EXAMINATION OF PROBLEMS AND PROSPECT OF VALUATION OF ASSETS OF PUBIC BODIES IN ENUGU STATE

ABSTRACT

The state of pubic properties in Nigeria is a source of worry to well meaning citizens of this country. It is common knowledge to see newly completed government properties dilapidate very fast, thereby causing economic waste. Investigations revealed the poor condition of public properties is caused by various act backs there re a member of management, problems, such as insufficient funding poor facility management, political influence, bureaucracy, personal interest and lack of professionalism. Nigeria Railway corporation properties include undeveloped land and landed properties. The landed properties are residential building shops, catering services, office and guesthouses. Management of these properties by the Railway property company limited, under the control of Nigeria Railway Corporation Board had led to the unhealthy nature of these properties. Management of pubic properties by a board is usually characterized by some difficulties such as bureaucracy, political influence, insufficient funding in the management system of the Nigerian Railway Corporation properties to enhance effectiveness and efficiency. In view of the above negative management tendencies by a board of directors, it is necessary to privatize management of properties of the Nigeria Railway Corporation in order to inject prudent Management in the system. Privatization of management system of public properties has been advocated by professional bodies such as the Nigeria Institution of Estate Surveyors and Valuers as the only viable option to turn around the dilapidation of public properties in this country. Privatization encourages prudent management of public properties. In this direction round pegs should be put in round holes. Incapacitating of public properties in Nigeria needs. To be transformed in order to reduce huge economic waste in pubic properties in this country hence  the institution of Estate surveyors and Valuers and other related professional bodes in bodies in Nigeria should rise up to advocate private partnership participates in the management of public properties.  Management of pubic properties by a board of directors calls for a change. There is the need to join the rest of the civilized world in their style of management of public properties. Private partnership participation in management brings about profitability and it should encourage especially in the Nigeria Railway corporation properties.                                 

TABLE OF CONTENTS

Title page                                                                         i

Certification                                                                    ii

Dedication                                                                       iii

Acknowledgement                                                           iv

Abstract                                                                          v

Table of contents                                                             vi

CHAPTER ONE

1.0      Introduction                                                            1

1.1       Background of the Study                                       1

1.2      Statement of Problem                                             4

1.3      Aim and objectives of the study                              5

1.4      Research Question                                                  5

1.5      Significance of the Study                                        6

1.6      Scope of the Study                                                  7

1.7      Limitation of the Study                                           7

1.8      Overview of the study                                             8

CHAPTER TWO

2.0      Literature  Review                                                   10

2.1      Meaning of Valuation                                             10

2.1.2        Concept of Value                                                 11

2.1.3        Method of Valuation                                           14

2.2        Difference Between Private and Public Properties 20

2.2.2        Property                                                              21

2.3        Summary of Reviewed Literature                          22

CHAPTER THREE

3.0      Research Methodology and Design                         25

3.1      Research Design                                                     25

3.2      Re-statement of the Problem                                  26

3.3      Brief Description of the Study Area                        26

3.4      Population of the Study                                          27

3.5      Sample Size and Sampling Technique                   28

3.6      Sources of Data                                                      28

3.7      Instruments of Data Collection                              29

3.8      Method of Data Presentation and Analysis            29

CHAPTER FOUR

4.0      Data Presentation and Analysis                             30

4.1      Presentation of Base Data                                      30

4.2      Presentation of Data According to Research Questions and Questionnaires                               33

CHAPTER FIVE

5.0      Summary of Findings, Conclusion and Recommendation                                                     39

5.1      Summary of Findings                                             39

5.2      Recommendations                                                  40

5.3      Conclusion                                                              41

References                                                                       42

Appendix                                                                         43

Questionnaire                                                                 44

CHAPTER ONE

1.9     INTRODUCTION

1.10 Background of the study

Estate surveying and valuation in Nigeria is a child of the British system. The theoretical bases and professional curricula for the local training in Nigeria have been molded after the system established in the united Kingdom by Rics/Royal Institution of Chartered Surveyors. It remained a natural fact that Estate surveyor and valuer in Nigeria took after from the practice in United Kingdom.

Valuation may be defined as the art and science of estimating the value of a particular property at a particular time at a particular place taking into consideration all the factors that bear direct and indirect influence on the property market. Valuation as regards to the assets of any organization is usually given much attention because an assets of any organization is the bedrock of such organization.

However assets valuation is an important thing in any organization both public and private because it helps to discover the :Going concern” of the organization, which aimed at discovering whether the organization is growing (improving) or decreasing to avoid liquidation.

The public properties on the other hand can be seen as properties established by the government to serve the public. The state of public properties in Nigeria is a source of worry to well meaning Nigeria. Investigation revealed that poor performances and conditions of public properties is caused by various set back.

Nigeria Railway corporation properties includes undeveloped land and landed properties. Landed properties are residential buildings, shops, catering services, office and quest houses. As one of the public corporation, Nigeria railways corporation was established by law in 1912 by the British colonial masters to provides rail transportation services in the nation. The organization was structured according to the policy objectives establishing  it. The headquarters was located  at Ebute meta, now in Lagos state and its districts headquarters were located at Ibadan, Enugu, Kaduna, Bauchi and Kafanchan. The district headquarters in turn have their area offices to enhance implementation of management policies, hence the intention of the colonial masters to transport people, products and materials to different parts of the country.

However, it is with great regret that the cooperation have failed to live up to its expectation in all ramification.

It is against this background that the researcher seeks to examine the problem and prospects of the valuation of Assets of public bodies