Experts in finance have pointed out that implementing rigorous valuation standards can greatly enhance the financial reporting of Nigerian firms and attract investments both within and outside the country. This insight was a focal point of a recent seminar titled “Decoding Valuation Standards: Implications for Financial Reporting and Investment,” co-hosted by BusinessDay and Diya Fatimilehin & Co.
Rabiu Olowo, CEO of the Financial Reporting Council, represented by Ugochukwu Obu Nwora, addressed the critical role of valuation standards. He emphasized that investors rely on financial reports to make informed investment choices, and inaccurate reports can lead to poor decisions that may adversely affect their assets. Olowo noted that efforts are underway with various experts to ensure Nigeria’s first set of valuation standards is introduced by the end of August 2024.
Gboyega Fatimilehin, the founding partner at Diya Fatimilehin & Co., highlighted the seminar’s emphasis on the importance of these standards. He explained that establishing trustworthy valuation standards is crucial for reaching the goal of a N1 trillion economy by 2030, underscoring the connection between valuation practices and global business integration.
Fatimilehin further elaborated that accurate asset valuation and reliable financial reporting are essential for attracting both domestic and international investments into Nigeria. He noted that consistent application of asset valuation standards provides stakeholders with a clearer and more dependable view of a company’s assets and their impact on financial statements, facilitating better-informed decisions.