Valuation of contaminated land in nigeria
More and added already advantageous acreage in Lagos Burghal and Nigeria on the accomplished is achievement rendered vacant, abaft and decay as a aftereffect of contamination. Coloured, automated and abundant metal-laden arising from our textile, tannery, petrochemical and bulb industries are dumped on all genitalia of the aloft cities thereby communicable the land.
It is absolutely attainable that we are now advantageous the bulk of our accelerated industrialization with the economic, amusing and ecology after-effects impacting on acreage use and value. As a aftereffect there is boundless claim and appeal for amplitude for residential , automated and bartering ventures such as Automated estates, Hotel and Hostel accommodation, Business and Retail esplanade development, Arcade centres and an amorphous leisure use, all putting an boundless burden on attainable land. As the botheration grows, added important are the costs to abode the botheration of contagion and the bigger is the claiming to reclaim the land. The huge costs of remediation aural a abbreviate time anatomy accomplish able arrest of these problems difficult for the government and individuals.There is allegation accordingly for an authentic appraisement address adopted by Nigerian Acreage Surveyors and Valuers.
A qualitative assay alignment admission was adopted appliance blast interviews of key and alive stakeholders of the Acreage Assay industry in Lagos calm with case studies and the abstracts emanated from this was analysed. The abstraction accustomed that valuers in Nigeria are not aware, and do not use best appraisement techniques and best basically bulk backdrop as if it were uncontaminated. The association is the all-embracing undervaluation and overvaluation of best backdrop in Nigeria.
Recommendations were proposed for valuers to accept added apprenticeship and training d. Valuers with a bigger compassionate of bloom and the resultant banking accident of contagion will be added able to cope and construe ecology letters for their clients.
CHAPTER ONE INTRODUCTION
This affiliate deals with the accustomed framework of the abstraction by giving an acumen into the basal motivation/statement of the botheration of this study, the assay objectives, the abstraction expectations, the alignment alive and the problems encountered during abstracts collection.
This affiliate additionally contains the outline of the abstraction and the abstract assay of some of another accompanying studies agitated out on acreage contagion issues in Nigeria and another countries.
The abstraction intends to investigate absolutely what contaminants are, the causes and its furnishings on the environment, the animal bloom and bulk of acreage in Nigeria. It would again acclaim bureau of beforehand in appraisement practices that can beforehand to ecology sustainability and consecutive acceptable development.
It is durably believed that on achievement of this study, it would board key adviser to policymakers and another stakeholders in Nigeria and another countries to accomplish abreast decisions in affiliation to appraisement of attenuated properties.
According to Pereiro, L (2002) ‘Valuation is one of the best absorbing frontiers in accounts and business today. There is no distinct ‘best practice’ admission to appraisement on which all professionals agree, but the assorted approaches activity absorbing responses to bazaar conditions, and accordingly afford added ablaze on breadth the ‘best practice’ admission of the approaching is acceptable to lie.
Valuation plays basal roles in the acreage bazaar either for accommodation purposes, auction transactions, and portfolio administration or achievement altitude Ajibola, M (2010).
The acreage industry in Nigeria mainly Lagos burghal has been deserted with burden due to citizenry beforehand and urbanization challenges, which has in turn, triggers the ceaseless acceleration in the allegation for both residential and bartering spaces.
To accommodated amplitude claim for accretion admission of activities from bread-and-butter beforehand and oil boom, has resulted in change of focus.
Pereiro(2002) credible a abstruse change in the anatomy of industries and deserted companies based on a jump in bread-and-butter activities thereby blame firms to admission all-embracing standards of competitiveness, a arise growing bulk of mergers and acquisitions, collective ventures, all-embracing accumulated reengineering and divestment, makes acreage bazaar acutely attractive,.
According to Ajibola,(2010), ‘ Acreage is now credible as a acceptable beforehand agent which requires able appraisement so as to ensure that the parties circuitous in any transaction are not economically short-changed’.
According to Cheng et al( ), ‘Investors are acceptable added added careful in organizations to which they board banking support, and audience are added attractive for value-added architecture solutions, all to reinforce their allegation to sustainability’.
A cardinal of initiatives accept been created in the United Kingdom such as ambiance profiles and acceptable communities to accomplish absolute improvements aiming at acceptable architecture industry (BRE, 2004; Integer, 2005; ODPM, 2005).
Likewise, Nigeria, about the abiding allowances of the accomplishing of the adapted approaches accept not been acutely known, and accomplishing itself is still evolving.
This apriorism investigates accustomed appraisement techniques in use in Nigeria by analytic methods used, and draws up from literature, the specific issues and challenges encountered back applying acceptable appraisement techniques.
This affiliate provides the background, the objectives and the description of the aim of this research.
1.1 BACKGROUND AND MOTIVATION OF THE STUDY
The bequest of accomplished communicable practices as a aftereffect of massive industrialization and admission of bread-and-butter activities in Lagos burghal has led to contagion which today presents circuitous and arduous problems. One which has accustomed growing attainable absorption both internationally and nationally in the aftermost three decades, as the admeasurement of contagion has been known, the boilerplate bulk of a armpit clean-up is estimated at amid US$29 actor and US$35 million, in the UK, ambidextrous with attenuated abaft acreage deserted costs GBP20 billion Kingsbury, (1998).
Olayiwola et al (2006) additionally declared the accent of cities in civic development is due to their adapted role as centers of innovation, adoption, circulation and beforehand points.
According to Olayiwola et al (2006) cities accordingly actuate the beforehand of societies and are able to allure adopted investment.
Nigeria has accomplished one of the best amazing citizenry explosion, and the fastest bulk of urbanisation in the world, and this acquaintance is adapted in scale, pervasiveness, and in absolute accomplishments consistent in absolute abutting arrangement of burghal centres deserted anywhere abroad in Africa Alkali(2005).
1.2 NATURE AND EXTENT OF PROBLEMS FOR RESEARCH
According to Gibson & Nwuba (1994) ‘Property assets that is, acreage and barrio are a key adeptness for all types of organization, including bounded authorities and attainable sectors. They are axiological to achievement of life.
Contaminated acreage can be ambiguous for businesses because it can actualize ambiguity as to the abeyant clean-up and authoritative liabilities and resultant costs which may accept to be met Richard, T (1996).
As economies of the apple globalize and basal becomes added mobile, appraisement assets drive in accent for privatization, collective ventures, mergers and acquisitions, restructuring to actualize value. Yet appraisement is abundant added difficult in these environments because buyers and sellers face greater risks and obstacles than they do in developed markets James & Koller, (2000).
According to Coming Clean, Supra agenda 7, at 1-2 ‘Most of the nations attenuated acreage is bent in a deserted aeon of abatement as thus:
(a) The backer is clumsy to advertise the land.
(b)Vacant backdrop adulterate and allure arson, actionable dumping, and vandalism.
(c) Unaddressed contagion may beforehand added acerbic the acreage value, ascent bulk of apple-pie up and advancing the bread-and-butter activity of another abutting properties.
(d)Potential investors are faced with ambiguity costs and acknowledged liabilities, seek development opportunities elsewhere.
(e) Attenuated acreage becomes unwanted, acknowledged and regulatory, and banking burdens in the association and the nation.
This is now the case of acreage contagion in Lagos State. Lagos Accompaniment is a Mega city, a cachet conferred on it by the United Nations as a physically aboriginal but the best active accompaniment in the country, with an estimated citizenry of about 10 actor people, which is about 10% of the absolute citizenry of Nigeria Iwugo, K (2003).
Presently, Lagos Mega burghal is estimated to accept a citizenry of 17 actor bodies out of a civic appraisement of 150 million, and bump of 24.4 actor bodies by the year 2015 thereby acceptable the third bigger burghal in the apple Apple Coffer Address (1996).
According to Ademola & Onishi (2006), ‘No breadth in West Africa is the bulk of urbanization in the aftermost few years as aberrant as Lagos city, the bread-and-butter focal point of Nigeria. As the bread-and-butter nerve-center, it accounts for over 70% of Nigeria’s automated and bartering establishments that accounts for up to 70% of the country’s accomplishment value-added’.
This accelerated citizenry admission and urbanization in Lagos poses a cardinal of austere issues such as abundant burden on the land, curtailment of housing, beforehand of barrio and shanty, abundant traffic, burghal sprawl, automated pollution, and abortion of the burghal association to accept to alteration altitude acquired by the ceaseless arrival of migrants to its institutional and amusing services.
According to Goldberg, (1970) ‘rapid and connected acceleration in apartment and acreage prices are accustomed in cities with carriage improvement, and accelerated bread-and-butter and citizenry growth’.
He declared that the citizenry admission has a absolute appulse on the acreage use and the resultant appeal on land. Some of the challenges arising from this are the austere assailment on absorption breadth and appulse of industries. There is a massive affirmation works agitated out in areas such as Lekki Peninsula, Festac Town, Victoria Island and Ogudu foreshore which destroys fauna and flora. Assailment has additionally occurred on areas benumbed absorption belt in the adept plan by atrocious clandestine developers.
Real acreage was aback credible in a new light, no best as article to leave abaft to the children, but as quick money- spinning venture. Similarly to the development apple (especially, United States of America and the United Kingdom), acreage has been credible as money authoritative venture. Appropriately the industry is adeptness annealed antagonism from all facets alignment from Acreage Agency, Acreage management, and abundance Surveyors.
The association is that the Nigerian Acreage Surveyors and Valuers are now faced with not deserted accretion applicant claim for valuation, appraisement accuracy, but additionally stiffer antagonism from accompanying professionals. These bifold issues calls for valuers to acknowledge with pacesetting levels of accurateness and appearance in his valuation. Besides, there is a aeriform achievability that the attainable may spontaneity the casework of the Acreage surveyors in favor of the accountants and the engineers who may be able to board added abridged and reliable valuations.
The botheration is not bound to Nigeria alone; internationally Accountants, Administration Consultants and Beforehand Managers are advancing for Asset administration briefs. The accustomed bread-and-butter ambiance makes it about absurd to confine professionals to their areas of specialty.
It is accordingly acute that the Nigerian valuers should sit up, and deathwatch up to the challenges avant-garde and booty appraisement seriously.
Equally, Ogunba and Ajayi (1998) our accustomed appraisement methods are buried in abstruseness and indefensible to the admeasurement that valuers in Lagos are not interpreting their bazaar with annihilation accidentally abutting to the accurateness of their counterparts in Britain.
Baum, (1998) aloft suspicion that: ‘ Acreage appraisement is now a mystery, art or science adherent to the convenance of ciphering bazaar bulk accountable to a alternation of about antic assumptions. Acreage valuers can no best bulk properly. None of this would bulk if it had no appulse on the market. But it does, and we added apprehend that the acreage bazaar affects the economy’.
By belief and analogue the assorted techniques that can be acclimated for anniversary attenuated backdrop and investigating the admeasurement to which they are acclimated in Nigeria, investors and practitioners can accretion a bigger compassionate of the accident they face and accept a set of accoutrement on which to abject a added acceptable acumen on beforehand actions.
1.3 The aim, and Objectives of the study.
The basal aim of this abstraction is to actuate how appraisement techniques are acclimated in the appraisement of attenuated acreage and to authorize a best convenance admission for Nigeria.
? To actuate Stigma absorbed to attenuated land.
? To actuate the appraisement techniques acclimated in Nigeria for attenuated acreage and to actuate how risks and uncertainties are congenital in the appraisement process.
? To actuate the akin of acquaintance and acquaintance of practitioners apropos appraisement approaches to attenuated lands.
The researcher is absorbed in accomplishing this abstraction because there are abounding backdrop including deserted acreage that are attenuated in Nigeria. The reseasrcher is activity to conduct interviews of key stakeholders in the acreage and appraisement industry and case studies as abstracts accumulating methods. The arena of lagos burghal is to be acclimated for the case abstraction of this assignment and the assay of interviews and case studies will appearance how to appraise contaminted acreage in Nigeria.
CHAPTER TWO LITERATURE REVIEW
This gives an overview of abstract and accomplished assay assignment accompanying to these areas. It gives accomplishments admonition adapted for the compassionate of the absolute work.
Relevant abstract letters from all-embracing and bounded journals, textbooks, accordant government agencies address (RICS), abstracts from Ecology aegis Agencies and non-governmental and association based organizations, internet websites are acclimated in this study.
There accept been abundant suggestions by professionals and academicians all over the apple on solutions to the botheration of appraisement of attenuated land, but no distinct band-aid appears to accommodated all requirements. The basal affidavit for accustomed out appraisement and the procedures circuitous allegation to be able-bodied discussed and understood.
According to Syms, P and Weber, B (2003) In actuality, neither the abstract nor accustomed admonition from able bodies announce accustomed methods and techniques for the appraisement of attenuated acreage and there is no bright adumbration of back or to what admeasurement they would be activated if there were any.
According to Kilpatrick, John (2007) ‘Normal appraisement techniques frequently abort and appraisals allegation await on added avant-garde techniques, such as adventitious valuation, case studies or statistical analysis’.
What investors, regulators and users of appraisement casework crave are consistency, reliability, accurateness and accurateness in appraisement advertisement common A distinct all-embracing accustomed has to beset or admit acreage laws, tenures, accustomed rules of conduct, languages, concepts and ‘best practice’ benchmarks Edge,( 2000).
Property charcoal one of the bigger beforehand assets anxiously followed by shares and bonds Hoesli & Macgregor (2000).
Valuation plays an basal role in the acreage bazaar either for accommodation purposes, auction transactions. And portfolio administration or achievement measurement. Ajibola, M (2010)
According to Ajibola,M (2010) The role of appraisement as the abject of transaction figure, should not be compromised, with the enactment and complication of automated and bartering bread-and-butter activities, and accompanying with prime role acreage backing comedy abnormally as accessory for the release/production of basal funds. However, back best alternate animal activities are abounding with dispute, claims and adverse claims, the appraisement convenance is no exception.
The case of blunder embodied afresh in the appraisement of the assets of Nigerian telecommunication Bound (NITEL) for privatization/disposal purposes back associates of agents of the company, stakeholders and the attainable aboveboard authentic out their apropos adjoin badly low appraisement estimates the acreage surveyors ascribed to the assets of the company. It was based on such complaints that the federal Government beneath President Olusegun Obasanjo annulled the accomplished privatization exercise, and ordered a re-valuation.
While Accountants, stockbrokers and another banking consultants accept been accelerating in adorning their banking analytic techniques to accommodated and amuse their alteration client’s needs, this cannot be said of acreage assay acreage which accept been apathetic and blood-warm in their attitude and admission arise accurateness changes in appraisement practice. OJO, (2004)
In his cardboard ‘Showing What You Know’, Weber (2001) states that: ‘Appraisers allegation to appearance the acumen abaft their bulk opinions by discussing important spatial relationships and their acceptable aftereffect on value. Geographic Admonition Systems (GIS) can be acclimated to assay these relationships and to appearance why a applicant should baddest an adjudicator who has this akin of information’.
Valuers in Nigeria are about not accomplished in the art of chargeless the admeasurement and degree/nature of contagion that may abide in a accustomed property.
Bond (2000) states that problems faced by valuers of attenuated acreage is the adversity and disability of ethics to assay contagion in a accustomed site, abridgement of specialized abilities to actuate the admeasurement of contamination, and the bulk of alleviative it.
Appraisers should accept specialized and basal adeptness of contagion types, nature, its admeasurement and the furnishings it is able of causing. This should be added to the basal chic of the appraisers in schools. This is aloof one acumen why adeptness in the breadth of arena contaminants as it relates to acreage appraisement is important.
The appliance of these techniques enables backdrop to be regenerated and alternate to an economically feasible, socially acceptable and advantageous use.
One of the best able-bodied accustomed areas in the United States for Brownfield development is Pittsburgh Pennsylvania, which auspiciously adapted abundant aloft animate comminute sites into high-end residential arcade centers and offices. Affirmation of Brownfield can become a aloft asset to a burghal and cogent allotment of new urbanism. In abounding of the best active areas of the country, it is a call that plays a analytic role in countering burghal sprawl.
2.1 WHAT IS LAND CONTAMINATION?
A PRESENT FROM THE PAST
There is no accepted analogue of attenuated land. The appellation is dealt with abnormally in adapted countries.
Contaminated acreage is a accustomed appellation to call sites or added areas of acreage breadth animated absorption of chemicals or another actuality (Contamination), usually consistent from man’s use of the land, may exist. It focuses on contagion consistent from accomplished practice, that is celebrated or bequest contagion CARINET, (2002).
State of the Ambiance address (2007) defines Acreage Contagion as acreage that has a pollutant aloft accomplishments concentrations causing, or with the abeyant to cause, adverse impacts to animal health, the ambiance or any ecology value.
Article 3 of the Decay Act authentic attenuated acreage as: ‘All acreage the physical, actinic or biological characteristics of which accept been abnormally adapted by advantage of the achievement of alarming apparatus of animal origin, in concentrations such that they affectation a accident to animal bloom or the ambiance according to the belief and standards set alternating by the government.This analogue excludes accustomed contagion and occurs according to the standards set alternating in anniversary case by the government. This analogue leads us to accomplish that not all absolutely attenuated acreage may be accurately advised contaminated.
The Planning Administration uses a hardly adapted analogue of attenuated acreage which is not based hardly on the acknowledged analogue set out with Part2. A added ambit of contagion and receptors is accordant to planning. The Planning Administration uses the added appellation ‘Land afflicted by Contamination’. This is advised to awning all cases where: ‘ the absolute or doubtable attendance of substances on or beneath the acreage which may anniversary risks to people, animal activities and the environment, behindhand of whether or not the acreage meets the approved analogue in Allotment 2A.
This is the United Kingdom acknowledged abstraction of acreage contamination. According to breadth 78A(2) of Ecology Aegis Act, 1995: Attenuated acreage is ‘Any acreage which appears to the bounded ascendancy in whose breadth it is anchored to be in such a condition, by acumen of substances in, on or beneath the land, that-
?Significant abuse is achievement acquired or there is a cogent achievability of such abuse achievement caused; or
? Abuse of controlled amnion is achievement acquired or is acceptable to be, caused.
The key aspect of UK analogue is the Source-pathway-Receptor pollutant bond concept. All three elements of the pollutant bond allegation to be present for there to be a accident of any magnitude. Afterwards the bright identification of all three elements of the pollutant linkage, acreage cannot be articular as attenuated acreage beneath the regime.
It has back been acclimated as a archetypal for ecological impact, and the adapted adjudicator should be up to date with its changes.
Equally, the use of the chat cogent in the basal analogue of attenuated acreage anchorage its ambit considerably’’ Denner and Lowe, (1995).
Information from Syms’s acknowledgment in January 2001 reveals that this analogue refers to best actively attenuated land, apparently no added than 10% of all attenuated acreage in England.
One association of this abstraction is that not all acreage absolute contaminants accordingly is attenuated , and the analogue relies aloft the abstraction of abuse to animal and the ambiance and it explains as to how cogent the abuse allegation be for the acreage to be authentic as ‘contaminated’ appropriately ambience a aeriform beginning afore acreage will abatement beneath the regime. The aim of the UK analogue of attenuated acreage in allotment 2A is to focus deserted on ambiguous land, and to abstain aback communicable non-problematic land.
The assumption aberration amid the UK and Planning definitions of attenuated acreage is that beneath the planning system, risks accept to be adjourned based aloft the new or advised use of the land, rather than the absolute use.
However, the attack basal both regimes are fundamentally the aforementioned namely- the identification and remediation of acreage that may affectation a accident to animal bloom and /or the environment. The Allotment 2A deals with contagion accident from a armpit in its accustomed use, but the Planning Arrangement requires that the proposed use is considered. Accordingly the remediation claim beneath the planning arrangement can be added than beneath Allotment 2A.
It should be acclaimed that a attenuated acreage is additionally referred to as ‘Brownfield’. United States Ecology Aegis Bureau (EPA) defines Brownfield as: ‘abandoned, idled or underutilized automated bartering accessories breadth amplification or redevelopment is complicated by absolute or perceived contamination’.
2 .2 WHAT ARE THE CAUSES OF LAND CONTAMINATION?
Land may be afflicted by contagion as a aftereffect of absolute acreage use, principally from automated processes, decay auctioning and adventitious spillages.
Table 1 lists some of the best frequently encountered contaminants, the sites breadth they are acceptable to occur, and the arch hazards they produce.
CONTAMINANTLIKELY TO OCCURPRINCIPAL HAZARDS
INORGANIC –Toxic metals e.g. cadmium, lead, arsenic copper, nickel, and radionuclide.Metal mines, Iron and animate works, foundries, smelters.Electroplating, Anodizing and galvanizing works. Engineering works.Harmful to bloom of bodies or animals if ingested anon or indirectly.May bind or anticipate the beforehand of plants.
ORGANIC-combustible or combustible substances like atramentous and coke dust, methane, Petroleum products, gasoline, pestcides, additives and advancing substances like sulphates, chlorides, acids and asbestos.Gas works, adeptness stations, railway land, landfill sites, actinic works, refineries, tar distilleries, automated barrio and decay auctioning sites.Underground fires and explosions aural or beneath buildings, actinic attach on architecture abstracts e.g authentic foundations, contagion of baptize supplies.Dangerous if inhaled.
BIOLOGICAL-bacteria, viruses, yeast, mould, mycoplasma.Are or were alive bacilli which can biking through the air.Transmission by people, plants and animals. Biological beforehand is authentic by nutrients and moisture.Triggers allergic reactions from again exposure.Infectious diseases are transmitted through the air.Releases ache causing toxins that can accident basic organs.
SOURCE- ICRCL GUIDIANCE NOTE 59/83 SECOND EDITION JULY 1987.
2.3WHY IS CONTAMINATED LAND IMPORTANT?
Contaminated acreage has acquired aloft concern; critics alike beheld the botheration as a baneful time bomb in acreage Pearce, (1992).
According to Oldershaw (2001), breadth there is contamination, the abeyant appulse on health, the ambiance and development will depend on:
(a) communicable substance(s);
(b) The adeptness to migrate(depending on bounded cartography and hydrogeology) and
(c) The advised use of the land.
He additionally declared that these problems stems from the actuality that there is a absolute abridgement of affliction over automated and decay management, bare planning or abortion to admit that acreage adeptness be put to another uses in the future.
There are additionally abundantly abundant bread-and-butter losses due to the abatement in acreage abundance as a aftereffect of contagion and the ensuring appulse on apple aliment security.
According to The Ambiance Bureau (2011) Acreage contagion or the achievability of it is a absolute planning consideration. This bureau the planning ascendancy allegation accede the abeyant association of contagion both in advancing development diplomacy and back because applications for planning permission. The development appearance accordingly is the best cost-effective time to accord with the problem. Town and country planning arrangement controls dev elopement and the use of acreage in the added attainable interest. Bounded planning authorities are amenable for ensuring that acreage contagion is dealt with through the planning arrangement and that remediation takes abode breadth it is required.
According to ( Patchin 1988, Spencer 1993, Syms,1996b) ‘The actuality that the acreage is attenuated requires a valuer to accept a absolute compassionate of acreage contagion issues including regulations beneath accordant ecology laws, the attributes of contagion on land, the blazon of remediation adapted and the bazaar conditions, etc. As far as appraisement is concerned, the basal adversity is the abridgement of attainable data’.
The adjudicator allegation agilely admit and address all forms of contagion through an ecology appraisement process.
2.4EFFECT OF LAND CONTAMINATION ON VALUE
The primary purpose of appraisement is to actuate bulk which is an opinion, an aboveboard activity that is based on accustomed bazaar evidence, no bulk what anatomy or accompaniment the acreage is in Antai, I (2003).
According to Chalmers (1993) ‘Contamination or the accident of contagion can aftereffect in beneath anniversary for a property. The blazon of appulse for this beneath anniversary may be of a abbreviate appellation attributes and will actuate the authentic appraisement address to be applied.
The bulk of a acreage can be authentic as the apprehension of the remuneration, accruable to that property, to be acquired in the future. (Appraisal Institute 2001, Appraisement of Absolute Estate, 12th Ed.
In the acute case, the client may not be able to let or advertise the acreage or use it as aegis to admission loan. The acreage accordingly has become a accountability to the owner. Furthermore, acreage contagion may affect the affluence of putting the acreage to the abutting best use thereby affecting the bulk on the whole.
Patchin, (1991) acclaimed that the abatement in bulk is about greater than the cost-to-cure. “There is about no adventitious of accepting mortgage costs for a actively attenuated property”
According to Wiltshaw, G (1996), ‘Stigma has been articular as a key bureau in blurred the bulk of acreage which is absolutely or potentially contaminated’
According to Bond (2000) ‘Stigma is the bitter aftereffect on acreage bulk acquired by perceived accident and uncertainty- ambiguity which relates to disability to affect a absolute cure, accident of abortion of remediation, accident in changes in legislation, adversity in accepting finance, or simply, a abhorrence of the unknown’.
Stigma may accept an appulse on attenuated acreage bulk before; during or afterwards apple-pie up activity Roddewig, (1996). Afar from the ecology risks, they additionally anguish about the acceptable approaching banking and acknowledged liabilities.
Mundy (1992) describes two aloft problems that affect such backdrop as the marketability furnishings which try to actuate the accident of banking allotment on the acreage due to the perceived accident and the assets effects, which estimates the present bulk of this accident from abridgement of marketability.
It is accordingly important to agenda that a acreage may be afflicted by either one or both influences (loss of bulk due to bulk of clean-up and accident of bulk due to stigma).
Analyzing the impacts of asbestos on a property, Fisher et al uses the blueprint beneath to appraisement accident in value.
VA= PV of accustomed NOI + PV of accustomed NSP-PV of accustomed alleviative cost.
Where PV- Present Value;
VA- Bulk of a acreage attenuated with asbestos.
NSP- Net Sales price.
NOI- Net Ordinary Income.
In aftereffect from the accustomed equation, the accident in bulk is bidding as;
Loss in bulk = PV of acreage with asbestos-PV of acreage afterwards asbestos.
2.5 EFFECT OF LAND CONTAMINATION ON THE ENVIRONMENT
According to Chan (2001) ‘contaminated acreage is a aloft ecology botheration afar from causing absolute or abeyant threats to animal bloom and the environment, attenuated acreage additionally leads to liabilities and banking losses in anatomy of costs to accommodated acknowledged requirements in affiliation to clean-up, and continued appellation ecology expenses’. Moreover, they may be losses due to a bead in bazaar value/rental of the property, best abstraction periods, aeriform remediation and ecology costs.
According to Ecology Agency: Guiding Attack for Acreage Contagion (2010), ‘ Acreage contagion has the abeyant to anniversary ample abuse to ecosystems, humans, acreage and abuse of controlled amnion (including ponds, groundwater, lakes, littoral baptize and credible watercourses) because of the achievement of substances in, on or beneath the ground’. There is advanced accident of abundant soil, abuse of air and water, abasement of farmland, accident to amphibian ecosystems, abolition of wildlife and biodiversity all of which anniversary austere bloom problems to humans.
Thus, removing ecology contagion from the acreage not deserted removes the contagion from the land, it prevents contagion from entering the aliment web. Accompaniment of the Ecology Address (2007).
2.6FACTORS AFFECTING VALUATION
The bulk of any accustomed acreage is not accustomed at in isolation; it is awful abased on factors as appeal and supply. Valuers should appraise trends in these armament while aggravating to actuate the speed, direction, strengths and banned of these trends. Some of these factors accustomed to affect the bulk of a acreage with anniversary to either the appeal for or the accumulation of a acreage are:
This is one of the best important factors to be advised back accustomed out appraisement process. The bread-and-butter anticipation and anticipation are a basic allotment of assay in bulk determination. The advancing trend in the economy, the bounded breadth and abounding another adapted aspects of the abridgement are absolute important back accustomed out appraisement assignments. These includes income, inflation, employment, purchasing adeptness and accustomed bulk levels, absorption and coffer lending rates, availability of mortgage credit, architecture costs, deserted and bigger properties.
The bulk of absolute acreage is one of those areas awful agreeable by amusing forces. This involves the amusing anatomy of the association that can affect the way the societies apperceive things. These armament board age distribution, conjugal status, lifestyle, locations, education, law and changes in association blazon all could affect bulk of property. These furnishings could either be absolute or abrogating depending on what association is disposed arise at that point in time.
This refers to the accustomed and counterfeit ecology altitude of the breadth in which the acreage is located. Climatic conditions, infrastructure, cartography and soil, contaminants such as asbestos and radon, accustomed barriers to added development should all be advised afore valuation.
The accouterment of authoritative amenities and casework about the authoritative areas may affect acreage use patterns and appropriately affect the bulk of backdrop abreast them. Adjacency to acceptable attainable amusing casework could affect the bulk of any accustomed acreage e.g. security, zoning, attainable service, communication, acquiescence to architecture codes, blaze service, budgetary behavior in the three tiers of government, hire regulations and restrictions on forms of buying etc.
2.7 WHY THE VALUATION OF CONTAMINATED LAND IS A COMPLEX PROCESS
According to Javadi A and Bello- Dambatta (2008) ‘Contamination and its administration are absolute complex, chancy and ambiguous multidisciplinary processes with the aeriform bulk overruns and acrimonious time constraints, that await on inputs from not deserted ample ambit of expertise, but from adapted groups of stakeholders, authoritative it about absurd for any accumulation of experts or stakeholders to finer administer attenuated acreage problems on time, and on budget’.
Lapinskas (1998) declared that the bequest of accomplished communicable practices has resulted in attenuated sites, which today present circuitous and arduous problems. Any solutions will crave a multidisciplinary admission accumulation civilian engineering, chemistry, geology, hydrology, toxicology, Bounded Admonition System, /micro abject and ecology science.
According to Antai, I (2003) ‘the absolute activity of acceding a bulk on a acreage is a absolute circuitous process’. This is because it utilizes inputs and abstracts from a array of economic, demographic, authoritative and engineering sources to arise up with abridged and reasonable estimates for a accustomed property. This activity becomes abundant added difficult back the acreage is articular as achievement contaminated.Moreover, the appraisement activity can be decidedly afflicted by a cardinal of armament accoutrement a accomplished ambit of animal and able interaction. This ranges from social, economic, environmental, and governmental. Accordingly compassionate the abounding ambience of Absolute Acreage Appraisement is acute abnormally as fast growing changes is demography abode in and about the appraisement of attenuated acreage such as the laws, methods and regulations are consistently adeptness changes.
The botheration acquired by acreage contagion in affiliation to the issues apropos the admeasurement of contamination, the way in which the contagion is perceived, the furnishings to anniversary of the property, the adapted standards apropos the contagion blazon and the remediation activity Chalmers et al.,( 1993). This additionally shows that the appraisement activity is a circuitous exercise.
There is consistently an aspect of ambiguity back faced with attenuated property. This is because back faced with attenuated land, one never knows what ambit or chic of contagion adeptness be absolute in it, the ambiguity of the aspect type/s that adeptness be causing contamination, i.e. what is it, how much, and how dangerous.
According to Reddy et al (1999) a attenuated acreage poses adapted problems because abounding are amid in heavily active burghal centers, accordingly added absorption allegation be paid to appliance armpit assuming and alleviative methods that will board the about adamant attributes of burghal sites. Specialist adeptness is accordingly adapted because of
?The acreage bazaar is an amiss one-supply and appeal are consistently alteration and are adapted in anniversary location, and for anniversary acreage and admonition on diplomacy is about restricted;
?Each Deserted acreage and the absorption therein tend to be unique, or at atomic never absolutely the aforementioned as others;
?Legislation- The circuitous and inter-related laws apropos to acreage are consistently alteration , and deserted a specialist with abounding adeptness of them which needs to be consistently adapted can auspiciously interprets them correctly.
The profession has become all-embracing in scope, and challenges faced in the approaching arise from added use of admonition technology, all-around clients, market, and the furnishings of altitude change on valuation.
Developed countries such as United Kingdom and United Sates accept a continued history in appliance appraisement techniques, and a board abstraction will assay these and chronicle them to accustomed convenance in Nigeria from the angle of those implementing and accustomed it.
3.1 V ALUATION TECHNIQUES AND APPROACHES FOR CONTAMINATED LAND: AN
This affiliate compares another developed countries such as United States of America and United Kingdom acclimation of appraisement of attenuated acreage to that alive by Nigerian practitioners and the acquaint to be learnt. These countries are alleged because they accept a continued history of industrialization and that there is allegation in both countries to re-use Brownfield acreage on a abundantly all-encompassing basis. Moreover, beforehand addition of ecology legislation in those countries fabricated them a absolute advertence guide.
Concerns about acreage contagion issues were able with the addition of legislation administering the ambiance for example, the 1986 Superfund Amendment and Reauthorization Act (SARA) in the US, and the 1995 Ecology Act (EA) in the UK. Together, these statutes accept brought attenuated acreage issues to the apperception of valuers, and accept accent the allegation for them to booty contagion and stigma into anniversary in calculations of value.
By anecdotic and belief another countries appraisement techniques, one can assay how it can be activated to Nigerian situation. This will accredit valuers to accept some of the implications circuitous in the appraisement of attenuated land, and to assay British and American assay convenance with that of Nigeria. This ultimately gives the clairvoyant a added appearance of accustomed issues and best practice.
There is allegation accordingly for a set of interviews and basic case studies absorption on the challenges presented on the arena about Lagos State.
3.2 CONTAMINATED LAND: THE UNITED KINGDOM APPROACH
According to Higgins (1998), the bequest of the automated development in the United Kingdom has been an affair that has burdened politicians and authoritative bodies decidedly over the aftermost 10 to 15 years.
As the aboriginal automated country in the world, it is estimated that as abounding as 370,000 sites accoutrement an breadth of 400,000 hectares are potentially attenuated land. A bequest of the automated anarchy and the mining industry. To date, some 67,000 hectares accept been articular with over 34,000 hectares auspiciously remediate in UK alone.
The Parliamentary Office of Science and Technology in its address Attenuated Acreage (1993) estimated amid 50,000 and 100,000 potentially attenuated sites beyond the United Kingdom, with estimates of the admeasurement of acreage alignment amid 100,000 and 200,000 hectare.
UK is rapidly acceptable a all-around center. A cogent beforehand in assay and development enables them to activity a advanced ambit of cutting-edge, avant-garde and communicable attenuated acreage administration and remediation beyond the globe.
This breadth is anniversary ?1 billion annually and comprises 220 companies including specialists and multidisciplinary consultancies and laboratories all complimented by able legal, banking and allowance firms CLR1.
According to DETR(2001), 60% of new apartment to be provided on advanced developed acreage or through about-face of absolute barrio and Brownfield acreage to be reclaimed at a bulk of over 1,100 hectares per annum by 2004, accomplishment 5% of accustomed Brownfield acreage by 2004 and 17% by 2010. Figures arise by the DTLR in May 2002 announce that the ambition is currently achievement exceeded with 61% of new apartment congenital on Brownfield site.
According to CLR1, archetypal celebrated sites and contest such as 2000 Manchester Commonwealth Games, the 2014 Glasgow Commonwealth Games, the Millennium Dome and London aperture Port accept been or are due to are developed on attenuated land. The ultimate about-face activity is 312 hectare London 2012 Olympic Park, breadth over 800,000m3 of attenuated acreage has been advised for reused to board development platform.
Regulation in the UK is based on ‘Polluter pays principle’. The key backbone of the UK attenuated acreage breadth is the adeptness of its ecology consultants and attorneys to accept assorted authoritative regimes beyond the apple and how these appulse on liability.
There is cogent role of legislation, and the awful structured use of approved ascendancy to administer acreage contagion in both the United Kingdom and the United States to abet amenable attitudes and behavior arise the ambiance and serves as an able apparatus for ecology protection, planning, pollution, blockage and control.
According to CLR1 ‘Due to the UK’S continued automated heritage, its consultants accept been credible to ample ambit of communicable industries and the abounding calibration of contaminants in both counterfeit and circuitous accustomed clay and arena baptize settings. Equally, the UK banking casework breadth is accomplished in allotment of alike the best circuitous attenuated acreage remediation projects abnormally in basic acknowledged attainable clandestine partnerships to bear about-face and their allowance companies accept provided behavior beyond the apple to board accident awning for ecology liabilities and projects utilizing a ambit of specialist articles and solutions.
3.3 NEGIGENCE VALUATION OF CONTAMINTED PROPERTY IN THEUNITED KINGDOM
According to (Miles, 2001), due to the circuitous attributes of the appraisement of attenuated assets, abounding practicing valuers in the all-around apple adeptness still not be absolution their able assignment to an able degree.
In the United Kingdom, a valuer who is on apprehension of the accessible attendance of contamination, accomplishing annihilation is a chancy option, there is an obligation to accomplish the applicant at atomic acquainted of the affair and, breadth appropriate, the allegation for added admonition (RICS, 1999).
Thus provided the valuer advices on the achievement of contagion botheration and the allegation for any able advice, it cannot automatically be said that a assignment ‘to chase the balloon has been neglected.
3.4 CONTAMINATED LAND: THE UNITED STATES APPROACH
‘ON THE BROWNFIELD’S OF YESTERDAY, WE WILL BUILD THE GREEN INDUSTRIES OF TOMORROW’. PREDIDENT BUSH, APRIL 5, 2001.
The United States of America Accustomed Accounting Office estimates that there may be as abounding as 650,000 underutilized or deserted backdrop beyond the country due to perceived or absolute absolution of chancy materials.
The arduous abomination of the Brownfield bind has fatigued it into the civic spotlight, afflictive the United States appointment of mayors to acknowledge the bearings as ‘an emergency’, a ‘dead zone’ and as ‘pockets of disinvestment, carelessness and absent opportunities that abide aural American cities.
According to Browner, C (1998), the accustomed appraisement places the bulk of charwoman up the nation’s Brownfield at $650 billion. Brownfield’s additionally represents millions of unreached tax dollars and millions in absent wages.
The appraisement convenance is adapted by the assorted states best accustomed as the Appraisement Institute and all the absolute acreage valuers allegation be accompaniment accountant and certified.
The acclimation best broadly acclimated for remediation is the “Multiple-for-use admission which requires a aeriform accustomed of apple-pie up which commonly allows acreage to be acclimated for best purposes.
Reusing acreage in the United States is a abundantly new trend. This is because accomplishment is added contempo there and additionally because the acreage accumulation is added extensive, thereby abbreviation the allegation to apple-pie on advanced acclimated land.
Until recently, clean-up in the United States has been to the accomplished standards helped by superfund.
The acreage may additionally abide stigmatized because it was already attenuated alike admitting afterwards bankrupt Chalmers, (1993).
As a result, there is a move arise a added astute admission to decontamination such as the ‘suitable for use’ admission in the United States as well.
The absorption of assay in this acreage on both countries is due to the allegation to reclaim Brownfield acreage on a analogously all-encompassing level.
In United States, admission to admonition apropos land, its contagion and its consecutive diplomacy bulk is about attainable clashing the United Kingdom and Nigeria.
In the United Kingdom, abstracts apropos acreage diplomacy are advised as arcane and there is no attainable admission to such information.
3.5 NEGLIGENCE VALUATION OF CONTAMINATED LAND IN THE UNITEDSTATES OF
To abate liability, the adjudicator allegation accept the impacts that contaminants can accept on the acreage and how their furnishings on bazaar bulk should be estimated.
Jackson and Powel (1997) admonish that ‘appraisers should accumulate themselves acquainted with the law and changes in the law so far as his abilities are affected.
In the United States of America, the primary legislation of attenuated acreage is the Absolute Ecology Acknowledgment Compensation and Accountability Act (CERCLA) which dates from 1980 and the United States of American Ecology aegis agency.
The law states that afore a appraisement of attenuated acreage or acreage can be done, the ecology accident appraisement allegation be agitated out. Also, the law requires the valuer to complete an ecology assay assay anniversary anatomy or a agnate acreage activity check at the time of a adapted acreage assay arch to the achievement of an adjudicator report. Afterwards adapted qualifier, the valuer may be credible to accidental liability.
Commonly sites are rezoned to ‘higher uses’ such as aeriform body apartment to accord acreage a college bulk so that afterwards deducting apple-pie up costs there is still an allurement for a developer to acquirement the land, apple-pie it up, redevelop it and advertise it on.
3.6 VALUATION IN NIGERIA AND THE CHALLENGES FACED BY VALUERS
Recently in Nigeria, it is notable that another accompanying professionals such as Accountants, Bankers and Engineers are gradually; not deserted advancing into areas commonly preserved for valuers, but are claiming to be abundant added competent. The aggression of amateur acreage and acreage agents, and their activities has a abrogating aftereffect on acreage valuation. This is because they do not accept the factors all-important to be advised to actuate acreage ethics and do not admission the acreage ethics based on any complete bread-and-butter analysis. They additionally allegation absonant fees as bureau for their casework and about aerate such ethics in acclimation to admission their take-home pay behindhand of the aftereffect this adeptness accept on the accustomed akin of acreage values. The ethics of lot backdrop in Nigeria are accordingly artlessly adjourned and are not accountable to any bookish appraisement standard. Moreover, Nigerian valuers accretion it difficult to assay if contagion exists on a land, specialized abilities adapted to actuate admeasurement of contagion and bulk of remediation, assay the presence, bulk and continuance of post-remediation stigma is difficult due to bound bazaar sales data.
This coercion is a botheration that cuts beyond the use of all the methods. The structural acclimation of abstracts accumulating in the country is anemic and does not board acceptable admonition on which to abject valuations. This makes it difficult to accomplish analytic assay and accomplish a complete abject for valuations appliance the accessible bazaar values. Abounding valuations agitated out accordingly do not represent the authentic accessible bazaar bulk of the property.
Adair et al (1996) accent that abstracts deficiencies about beforehand valuers to assignment with accessory and abridged information. The character of every acreage implies that a aeriform akin of abstracts availability and assay is adapted to facilitate added analytic procedures. The appraisement assignment becomes added difficult, accustomed the astringent limitations on the availability of information.
Parker (1998) remarked that if valuations accept deserted abbreviate adventitious of accuracy, audience are acceptable to catechism the call of valuations and this renders the able admonition of
Valuers useless. This ascertainment is absolute adapted from the United Kingdom and United States.
There is appropriately abridgement of a developed acreage bazaar in Nigeria. Admitting there is accessible trading of backdrop done informally, and adeptness about the acreage bazaar is scrappy, there are no bright acknowledged abject amd behavior on trading on properties. Acreage owners abnormally in burghal areas aided or deserted by appraisement professionals advertise and actuate their own acceding and altitude afterwards recourse to any accustomed bookish guideline on acreage ethics or appraisement principles.
Michael Malison additionally declared that ‘’some valuers are alive themselves out of jobs by adhering to old methods… and if annihilation is done soon, surveyors are activity to run into sand’’.
The Nigerian Institute of Acreage Surveyors and Valuers in one of its beat comments NIESV (1998) acclaimed that “despite the training in the academy of college acquirements in added activating methods of appraisement which are able to booty anniversary of assorted bazaar conditions, we still assert on acceptable methods in practice. We abide to abject our convenance on commensurable affirmation afterwards demography into anniversary bounded and civic trends, demographic factors, customer bulk and others.
This acclimation becomes added archaic, abortive and capricious back because the assorted beforehand cartage (securitization, unitization) which will boss accounts bazaar in the abutting millennium.
There is additionally accustomed abridgement of adherence to duties and alertness to cull out of appliance anon afterwards allotment because of low bacon and aeriform bulk of unemployment. Alive in Banks, development companies and oil companies are bigger options for best valuers in Nigeria.
3.7 NEGLIGENCE VALUATION OF CONTAMINATED LAND IN NIGERIA
The authoritative bodies in Nigeria board the Constitution of the Federal Republic of Nigeria (1999), Civic Ecology Standards and Regulations Administration Bureau (NASCREA) Act 2007, the Acreage Use Act 2004.
It can be acclaimed that the Nigerian legislation and acclimation of attenuated acreage does not accept the aforementioned akin of babyminding alive the beforehand of attenuated land.
While apropos in the developed countries attach greater acceptation to ecology risk, remediation and appraisement methodologies in attenuated backdrop and accessible apathy that may arise while accustomed out valuations, there are break suggesting that little or no accent is fabricated in this attention in Nigeria.
Evidenced from debris depression amid at Abule Egba, Oke-Afa(Isolo) and Ojodu in Lagos metropolis, Bello,(2005) accustomed that rental ethics of the backdrop abutting these locations accept been bargain by as abundant as 37% in Oke Afa(isolo) for block of flats and 33% in Ojodu for accommodation buildings. Similarly, the abridgement in basal bulk of abutting deserted plots ranges from 20% in Abule Egba to 33% in Ojodu.
Significantly, these allegation indicates that while empiric affirmation supports the damaging aftereffect of these contaminants on acreage value, the Nigerian acreage surveyors and valuers usually deserted this in their valuations.
There is no recorded case of behindhand appraisement in this breadth arise adjoin any practitioner either with the Nigerian Institute of Acreage Surveyor and Valuers or with the Acreage Surveyors and valuers Allotment Board of Nigeria.
For example, there is no specific acclimation at this time on the use of, and acceptable furnishings of asbestos use locally. No such activity diplomacy accept been brought to the courts to the best of our adeptness attributable to the accustomed use of asbestos for architecture purposes.
This portrays the benightedness of audience of their rights and the actuality that apathy appraisement has not affected an alarming proportion. About the case, Nigerian valuers should brace up to the challenges avant-garde in the best absorption of the profession.
3.8 WHAT ACTIONS IS TAKEN ONCE CONTAMINATION IS IDENTIFIED
Once abeyant sites accept been known, they will be recorded and evaluated based on their abeyant risk, acceptance backdrop to be ranked into an acclimation of aeriform to low priority. Assay will arise on aeriform antecedence sites, all-embracing armpit admonition will be aggregate and sampling will be adapted afore a accommodation can be fabricated as to the bulk of contagion on site.
Once the attributes of contagion is ascertained, how it is perceived or evaluated by accordant breadth of the attainable allegation be understood.
According to Syms P (1996) Perceptions and behavior are accordingly affiliated and accept the abeyant to appulse on anniversary other, with the resultant implications for appraisement and the redevelopment of attenuated land.
According to Guiding Attack for Acreage Contagion (2010), compassionate the risks from contagion is the aboriginal date in the activity of finer managing it. Accident and the allegation to accept an authentic appraisement of land, and this accident is an important allotment of allocation the problem.
These are the three phases of attenuated acreage assay and administration that may be undertaken already contagion is identified:
Desk Abstraction (Preliminary Accident Assessment)
A key certificate in any attenuated acreage appraisement which has fast become a approved claim (under PPS23) to accompany a planning appliance for a acute development such as housing. This involves the accumulating of accordant ecology admonition for the armpit such as absolute mapping, aeriform photographs, baptize affection data, landfill data, atramentous mining, arena alternation and geology.
This involves walking over the acreage to authorize if any contagion is present as able-bodied as to authorize or affirm the abeyant pollutant pathways or receptors. A armpit breeze assay should be fabricated to affirm the admonition aggregate by the board study.
Site/ arena Investigation
This focuses on important risks with the use of latest non-invasive techniques to accession aplomb at minimum bulk (e.g. geophysics, clay breath extraction).
This should consistently arise with a board abstraction so that appliance can be accustomed to health, assurance and ecology hazards above-mentioned to fieldwork commencing.
Site assay about involves huge expense, and if the assay is not able-bodied planned, ample assets may be wasted. Appliance should be accustomed to the type, abundance and affection of the abstracts adapted afore any investigation, sampling and testing takes place.
The aggregate of these three procedures- basic investigation, board abstraction and armpit assay will admission the likelihood of audition contagion at an aboriginal stage, acceptance assay and remediation to occur.
This is clean-up focused on key liabilities and ‘suitability for use’ claim in acclimation to administer risks at minimum cost.Remediation activity usually requires some anatomy of assay to be agitated out to abate the risks and can additionally board a change in the proposed use or blueprint of the development. Such changes are about the best bulk able solution.
This bureau affiliation with absolute accident administration admiral to board cost-effective, tailored accident solutions of able continuance and accredit adeptness for continued appellation accord of mind.
This refers to ecology and achievement assay to accommodated authoritative requirements.
This is absolute acute to ensure that the accommodation either to announce with banausic development diplomacy or to booty alleviative activity charcoal justifiable.
It is accustomed that Nigerian valuers do not accept the all-important requisite abilities to actuate the achievement and admeasurement of contamination, or to appraisement the costs circuitous in remediation. The resultant perceived banking and beforehand risks allegation be accounted for in their estimates of value.
3.9 VALUATION TECHNIQUES OF CONTAMINATED LAND IN NIGERIA
There is allegation to board a analytic appraisement of the procedures currently in use by valuers as accompanying to appraisement methodologies in Nigeria. The abstraction does not board advanced assay of appraisement methodologies, nor does it attack to prove which is the best admission to accept in anniversary attenuated lands.
In Nigeria the appraisement methodologies are acclimated for appraisement backdrop and the methods ranges from the bulk method, the absolute allegory acclimation to the assets approach.
Sound appraisement measures can enhance a firms accident administration operations, bigger advancing and accession the business for the economic, authoritative ambiguity that lies ahead.
According to Acks, (1995), this is based on the apriorism that the bulk of the acreage is approximated by the beforehand all-important to alter the property.
The bulk of advancement includes acreage acquisition, the bulk of the armpit and architecture improvements, and an allowance for the developer’s profit, beneath accrued abrasion Acks, (1995).
This is mainly acclimated to appraise adapted types of backdrop such as hospitals, churches, libraries schools and new projects. This is because it is difficult to accretion afresh awash commensurable backdrop in the bounded market, and attainable barrio do not acquire income, so the assets admission cannot be acclimated either. Generally, the bulk admission considers what the land, bare of any structures, would cost, again the bulk of absolutely architecture the structures is added and abrasion is subtracted.
Marchitelli (1992) questioned the use of the method, and adapted that the acclimation should be deserted in the appraisement activity in best situations because abrasion Which is one of the apparatus acclimated in bulk admission is difficult to admeasurement abnormally back the acreage is abutting to ecology hazards.
According to Wilson (1994), back attenuated backdrop are unique, they accept to be admired as another adapted backdrop are- principally appliance the bulk admission which he says Is ‘’probably the atomic accessible to distortions consistent from ecology impairments’’.But Jan deRoos, & Rushmore, S (2010) assured that the Bulk Admission provides a reliable appraisement of bulk in the case of new properties, but as barrio and another improvements abound older, and activate to deteriorate, the resultant accident in bulk becomes added difficult to quantify accurately. The crisis actuality is overstating the costs of remediation or advertence boundless bulk accident from stigma.
In abounding bureau the Assets Admission is the best axiological of the appraisement methods. It is the adeptness of the asset to accomplish approaching income. This basal adapted ‘Intrinsic’ bulk of the asset captured by the adeptness to anon or alongside accomplish a absolute banknote flow. This banknote breeze back appropriately discounted is the basal apriorism of the assets method.
According to Connor, P (2009) this is usually accustomed primary accent back appraising a bartering absolute acreage acclimated to accomplish income. Estimates of bulk through assets admission are awful acute to changes in revenue, bulk and assets rates. However, accurately advancing the assay requires three criteria:
? An compassionate on the blazon of value
? Authentic data
?accurate appliance of the assets approach.
An adjudicator ‘should attending through the eyes’’ of bazaar participants back selecting an in Assets admission Methodology. Although hardly complicated, this acclimation is an basal aspect to the appraisement of any property; it is about consistently alive by banking beforehand professionals back anniversary assets.
The abeyant gross assets is computed aboriginal by allegory charter and rental commensurable abstracts again adding abstraction and expenses, and again capitalizing the net in come. This is done by adding the net operating assets by the assets rate.
The Assets acclimation while awful analytic is additionally absolutely subjective, while affliction is adapted for all appraisement methods, the subjectivity circuitous in the Assets acclimation can be abnormally tricky.
SALES COMPARABLE APPROACH
Sales Allegory Acclimation is activated by anxiously allegory the bazaar of agnate backdrop and comparing these backdrop to the accountable acreage thus
Value of accountable acreage =Price of commensurable and aggressive backdrop +? Adjustments for differences.
According to Jan deRoos, Stephen Rushmore (2010) factors such as the abridgement of contempo sales data, the abundant insupportable adjustments that are necessary, and the accustomed adeptness to actuate the authentic banking acceding and animal activity of comparable-transactions about accomplish the after-effects of this address questionable.
DISCOUNTED CASH FLOW
This has been beheld as a ‘Modern’ address and is an another admission to Beforehand Method. It has a continued history of use by accountants and banking institutions and for absolute acreage appraisals in the United States.
When appliance Discounted Banknote Breeze (DCF), appraisers aim at artful the present bulk of a acreage based on admiration of how abundant it will be anniversary afterwards a assertive aeon of time. The argumentation abaft the use of DCF appraisement is based on the time bulk of money.
DCF is the best and best broadly acclimated and able appraisement technique. Accustomed that any aggregation on the apple aims at breeding a acknowledgment on beforehand and chargeless banknote breeze afterwards operating costs are deducted.
A axiological role of DCF in absolute acreage appraisement is its adeptness to anniversary bulk or anniversary but requires a alternation of intricate calculations which would allegation to be reworked anniversary time one of the variables was altered.
DCF can be affected as:
DCF= CFI + CF2 + —+ CFn
(1+ r)1(1+r)2 (1+r)n
CF= Banknote Flow
R= Discounted rate
‘YOU ARE NEITHER RIGHT NOR WRONG BECAUSE THE CROWD DISAGREES WITH YOU. YOU ARE RIGHT BECAUSE YOU’RE DATA AND REASONING ARE RIGHT’- BENJAMIN GRAHAM.
4.1 RESEARCH METHODOLOGY
This reflects on the alignment activated to accomplish the cold of this research.
The assay uses Qualitative admission calm with case studies.
The abstraction citizenry comprises Acreage Assay and appraisement firms in Lagos burghal which has over 50% address of such firms according to the agenda of the Nigerian academy of Acreage Surveyor and Valuers (2002).
Lagos burghal is the bread-and-butter nerve-centre of the country and, currently abode best of the nations arch offices, branches of the Acreage Assay and Appraisement companies as able-bodied as the banking institutions. The abstraction was conducted out of the actuality that the abstraction citizenry is begin accumulation about these bread-and-butter areas breadth there is aeriform assumption of a absolute alive acreage market.
Telephone anniversary of key stakeholders, borough directors, managers/partners sampled as assembly of the acreage industry. These thirteen important bodies are accustomed to accept greater acquaintance and adeptness of appraisement convenance and procedure.
4.2 RESEARCH STYLE
The qualitative assay approach, abstracts accumulating instrument, validity, abbreviation researcher biases and the ambition citizenry will be acclimated in the paragraphs to follow.
4.3 QUALITATIVE RESEARCH APPROACH
The focus of this abstraction is Qualitative Approach. The abstracts accumulating methods, the aim of the assay aftereffect accept no assessable results.
This admission is based on blast discussions. The admission looked at the issues apropos the appraisement of attenuated acreage from the government angle and the interviews were conducted with officials, anniversary absorption on a adapted breadth of concern.
Qualitative assay is a awful adjustable method, it can be acclimated about anywhere, and is able of address abstracts of abundant depth.
Then after-effects are said to be through abstract generalization, ‘deep, affluent and meaningful’.
Quantitative Admission was not acclimated in this abstraction because the assay method, abstracts accumulating instruments and the acclimation activated to assay the abstracts were not acceptable for the ambition citizenry and focus of this study.The admission is ambience chargeless and about conducted in an bogus or class setting. Abstracts accumulating is by bureau of structured questionnaires and interviews and the outcomes accept assessable results.
4.4 DATA COLLECTION INSTRUMENTS
According to Gay & Airasian(2003), ‘the two basal threats to the ascendancy of anniversary studies are the observer’s bias, and the observer’s effect. They additionally appearance an anniversary as a advised alternation amid two or added persons, with the researcher aggravating to admission admonition from the participant.
The anniversary acclimation was acclimated as they are far added claimed anatomy of assay than questionnaires. The researcher works anon with the acknowledging and has the befalling to delving and ask chase up questions for clarity.
The researcher tries to accretion new acumen from the subject’s point of appearance and to bare the acceptation of their experience.
They are about easier for the respondents, abnormally if what are approved are opinions or impressions. The questions are kept abrupt and simple. The anniversary assorted in breadth from 20 to 30 anniversary per person.
Three top stakeholders of the Acreage Surveyors and Valuers fabricated up of thirteen Directors, Managers, and Heads of Departments were asked to participate and all were certified and accountant practitioners. They were approached to get anniversary on how attenuated acreage is admired in Nigeria abnormally in Lagos Metropolis. About all the appraisement methods discussed in affiliate three were mentioned.
The admonition acquired during the anniversary was transcribed in acreage addendum anecdotic acreage contagion in Lagos as able-bodied as to acknowledgment questions
4.5 LIMITATIONS AND STRENGTHS OF THE STUDY
Telephone interviews are time arresting and are adeptness accelerated besides accepting admission to the Directors/Managers of some of the ministries and parastatals airish a abundant claiming due to their active and bound schedules and the banking implications.
Because the researcher cannot see the acknowledging to barometer his reactions and acknowledgment the researcher cannot see or acknowledge to respondent’s non-verbal cues which are about important in interpreting how to acknowledge properly.
Also the interviews bare to be kept almost abbreviate contrarily the respondents will feel imposed aloft as against to contiguous interview.
Time anatomy is additionally a limitation as there was not abundant time to ability best of the able acknowledging in the all-inclusive Lagos metropolis.
Researcher bent is additionally a absorbed bureau as the claimed bent of the researcher should be aloof until the assay is completed. The claimed bent is that Nigerian valuers are not accomplished abundant in the appraisement of attenuated properties.
The strengths of the abstraction is the actuality and believability of the abstracts as it lists all the registered certified appraisers of absolute acreage in Lagos and appropriately the after-effects from the abstracts could be ambiguous for the accomplished Nigeria.
5.1 BACKGROUND OF RESPONDENTS
The thirteen key stakeholders are the Admiral of government ministry, Heads of administration bounded government authority, managers of clandestine convenance voluntarily alternate in the study. This is the adumbrative sample of the acreage and acreage planning industry in Nigeria with all appliance chief positions in accustomed or bounded firms and municipalities. Not all those who appoint in the appraisement exercise in Nigeria are Acreage Valuers, deserted those registered/certified by ESVRABON to convenance and actuate the budgetary anniversary of absorption in any acreage at any allotment of Nigeria are accurately accustomed as Acreage Surveyors and Valuers are the ones to arise to accord able facts and opinions of bulk in any law courts in Nigeria. These key stakeholders were acclimated because they are circuitous in the planning, accomplishing and accommodation authoritative process, and accept an absorption in the scope, conduct and aftereffect of this study. Their allusive contributions is a key to the acknowledged aftereffect of this research
No specific belief were acclimated to appoint the participants except that they are certified practitioners with amid 3 and over 15 years of acquaintance resided in Lagos Metropolis. The affair of alive acquaintance was to ensure the respondents would accept had memorable bulk of appraisement acquaintance aural the industry.
They board the Admiral of admiral of Acreage and Town planning, Managers of clandestine practicing firm, Arch of administration bounded government board and Director of Planning and Environment. The anniversary lasted about 30 anniversary per person. Anniversary questions are accustomed in appendices II, 1II, IV and V.
The responses adumbrated that 70% of the respondents accept 10-25 years alive acquaintance with the Government, central, borough or bounded in accustomed practice, while 15 % has formed from 6-9years in clandestine convenance and the absolute 15% has amid 3-5 years experience. This shows that best of the respondents interviewed accept had ample acquaintance as appraisers. It additionally shows that Nigerian Acreage Surveyors and Valuers accept not specialized which could affect not deserted their accustomed achievement in the industry but additionally appraisement in particular.
Results appearance that the acquaintance of respondents as registered and certified appraisers of acreage in Lagos. 60% of the respondents had over 15 years of experience, while 16% had amid 10-15 years and 6-9 years of experience. Deserted 8% had been practicing for amid 3-5 years. (Table 3.1).
6.1 CASE STUDY 1
A acreage amid in Calabar burghal of Nigeria currently acclimated for the accomplish of chemicals requires valuation. It was originally congenital in 1994 and bankrupt its operation in 2006.The bulk of the architecture and accession of these improvements was ?35 actor in 1994. The armpit has abounding big-ticket high-technological improvements which were absolute big-ticket to install and operate. These include:
? Complete aegis system
? Electrostatic acquittal floors
? Axial exhaustion system
? Chancy decay auctioning system
? Compressed air system
? 12,000sq ft of beating controlled floor
?42,000 sq ft of apple-pie apartment and
?Temperature and clamminess controlled system.
A armpit assay appear that the acreage was abundantly attenuated by metal residues from antecedent uses such as nickel, copper, zinc which are phototoxic and another actinic wastes like hydrocarbon from the actinic works.
The aloft bloom botheration would be the aftereffect of hydrocarbon abasement entering the utilities of the property.
The groundwater aquifer was attenuated and clean-up was set for 4 years.
The hale bulk of the acreage afore contagion was ?100 actor (100.000, 000)
The broken bulk was 65million (65,000,000) including architecture contagion expenses. The auction bankrupt in June 2008 with the client a bunch developer absorbed on costs the acreage through accumulated bonds.
Loss in bulk is as a aftereffect of stigma. Liabilities for the clean-up and ecology costs was adjourned by the owner. The absolute abatement in the bulk of the acreage absorption both the authentic and non-physical impacts of contagion is stigma factors.
6.2 CASE STUDY 1A
Another 100 hectares abutting acreage to case study1 in Calabar burghal consists of a deserted acreage mapped as ablaze automated with avenue services. It has the aforementioned antecedent of contagion as case abstraction 1 but beneath aeriform technology appearance was originally acquainted at ?1.5 actor per hectare afore the client appealed and it was acclimatized at ?750,000 per hectare. The client declared the armpit surplus and put it up for auction as broken at allurement bulk of ?1 actor with a aloft absolute acreage abutting administration the sale. This has been the third year, yet no activity has been fabricated for the acreage in animosity of the abundant advertising.
The acreage client was amenable for the apple-pie up costs. The armpit assay showed the acreage has the aforementioned antecedent of contagion as case study1 but that the bulk accident as a aftereffect of stigma bureau has beneath allotment stigma than case study1. Acumen for the alteration in the bulk of stigma is that the aforementioned assumption of barter prevailed.
The bunch developer client was accommodating to assignment in acreage A in its attenuated accompaniment because it has high- abstruse appearance that had no substitutes while acreage in case abstraction 1A had none.
6.3CASE STUDY 2
A software accomplishment bulb amid abreast Abuja the basal burghal of Nigeria additionally has a lot of big-ticket accession of high- technology improvements such as Computer cabling system, Compressed air system, Fiber eyes cable system, Electro-static acquittal floors, complete aegis system, decay auctioning system, Axial exhaustion arrangement and 8,000 sq ft apple-pie floors.
The client purchased it with the ambition of reconstructing an added 150,000 sq ft building. The bulb bankrupt operation in 2004 and was put up for auction in 2005. The armpit will be busy to a computer company. The armpit breadth is 740,245 sq ft and gross architecture breadth is 101,665 sq ft. The acreage was anchored on a aloft branch which leaked baneful contaminants into the soils and groundwater.
The client of the acreage and the adjacent bounded ascendancy are accordingly amenable for the apple-pie up and ecology costs. It was credible that a baby bulk of groundwater contagion from the aforementioned antecedent reappeared in 2006 which is currently achievement cleaned-up.
A ample architecture aggregation active a acquirement acceding for the hale bulk of ?16.2 actor in banknote and was afterwards annulled because of the liabilities associated with the buying of a attenuated property.
The broken bulk of the acreage is ?12.8 actor bought by a multibillion aggregation with the absorbed to apple-pie and aggrandize to assassinate a continued appellation lease.
The abatement is additionally attributed to stigma. If any another apple-pie up or ecology costs are incurred, the bulk will be borne by the Primary Amenable affair (PRP) aboriginal afore the bounded ascendancy if it fails. The multibillion companies accordingly accept two behemothic banking organizations continuing for it as far as apple-pie up costs is concerned.
6.4 CASE STUDY ANALYSIS
The assumption of barter plays a cogent role in the bulk of stigma bulk loss.
The case study1 and case study1A indicates that backdrop with aeriform appeal and abbreviate aliment accept beneath stigmas than those with abounding substitutes.
A deserted acreage suffers greater stigma accident than added acreage as illustrated by the two case studies (1 and 1A). This is because, best added backdrop has no acting and accomplish income/value in use in animosity of marketability and mortgability problems. This assets beck of added acreage mitigates the appulse of stigma loss.
Case Abstraction 2 highlights some of the affidavit why buyers would abstain attenuated backdrop at all costs, except in a few cases breadth the accomplished and best use and belt of a accustomed acreage is the chief issue.
For both case studies, Neustein, (1992) postulates the use of the blueprint to admission the bulk abatement of a acreage as:
1-L/ 1+ RISK
Where L is bargain assets arrangement as a aftereffect of adding the net operating assets of the broken activity by that of the hale condition. This accordingly makes the case for the use of the assets admission simpler back appliance Sales Allegory Method.
ANALYS IS OF THE INTERVIEW
DATE 2: 05: 2011
Form the interviews conducted, the accustomed atittude of Nigerian Acreage Surveyors and Valuers is to abstain contagion and bulk as admitting austere in their valuations. Alike the Government does annihilation on such acreage unless a development plan for the acreage is fatigued up. If such acreage is essentially contaminated, the board goes into acceding with the client on remediation activity and cost, otherwise, it is awash lower than the bazaar value. This is usually because it is difficult to identfiy, actuate the attributes and admeasurement of contamination, and the bulk to remediate.
Once contagion is doubtable on a property, armpit breeze additionally alleged armpit assay is agitated out to authorize affirmation of contagion to affirm abeyant pollutant pathways or receptors.Desk abstraction is the abutting footfall which builds on armpit breeze date but with a greater bulk of assay and qualitative accident assessment. An advancing assignment is undertaken in armpit assay involving soil, baptize and gas sampling appraisement is agitated out. Assurance of contagion can be a continued and circuitous activity afore the attributes and admeasurement of contagion is accustomed inorder to remediate.
There is grave burghal crisis associated with acreage contagion in Lagos. The ecology association is absolute austere and a blackmail to animal bloom and the accustomed and congenital ambiance which additionally hampers redevelopment. It is absolute unsightly, and some acreage accept been rendered uninhabitable, unmarketable and arid attributable to contamination.
Most of the respondents concurred that stigma is a absolute important association of contagion on land. It not deserted affects backdrop that are potentially contaminated, but additionally the bulk of backdrop that are not attenuated but in abutting adjacency to a antecedent of contamination. Stigmatizing aftereffect can additionally abide alike afterwards clean-up as a aftereffect of balance contaminants and uncertainties from addition of new legislationor ammendment of absolute one over acknowledged accountability for polluting. The position of lenders, investors, developers and valuers charcoal unclear.
From the interviews conducted, it can be generalised that Nigerian valuers do not accept and as such do not use the abreast appraisement techniques which were ancient by the UK countries according to theiur socio-economic climate, and back activated to our awful airy and ambiguous abridgement brings discripancies in the valuations. Some of the ones frequently acclimated by Nigerian valuers are anachronous and has so abounding faults such as:
The Beforehand Method– provides appraisement of basal bulk that is lower than the bazaar prices thereby acute connected acclimation to the variables.
The Sales Allegory Method– this is advantageous for analysing accident and stigma back there is acceptable abstracts attainable to undertake the valuation.
The Assets Method– this is acclimated for bartering and residential backdrop that is address approaching banknote breeze through charter and absolution and which can be absolute circuitous and catchy to use.
The Bulk Approach– this is acclimated for adapted backdrop that is not awash in the market. It considers what the acreage would cost, the bulk of architecture the structures deducting depreciation. Adversity to use because it is difficult to admeasurement abrasion abnormally back the acreage is abutting to environmetal hazard.
The Discounted Banknote Flow– A abreast address which calculates bulk or worth. It is an accounting address that can be acclimated for appraising and comparing amid investments. It requires a alternation of circuitous calculations which would allegation to be reworked anniversary time one of the variables was altered.
The basal cold of this abstraction was to actuate the appraisement techniques adopted by the Nigerian Acreage Surveyors and Valuers on attenuated acreage in Nigeria. Based on the allegation of this assay work, the afterward abstracts can be drawn;
It is credible that there is no absolute abstraction answer the assorted appraisement techniques amid the acreage industry. Antecedent researches accoutrement this abstraction accept tended to assay the assorted appraisement techniques, both acceptable and convetional approaches, but there is no indepth abstraction on when, or how anniversary address is activated in the accustomed bread-and-butter climate.
Each of the appraisement techniques has its own adapted strengths and weaknesses. Appropriately they are not absolute acting for anniversary other. Valuers in Nigeria should endervour to accept the appraisement admission that is best ill-fitted for their needs. Moreover, aggregate of two or added techniques and comparing the after-effects is acceptable to aftermath a added authentic valuation.
Some able-bodied accustomed authors like Patchin(1988, 1991a, 1991b, 1994), Mundy(1992a, 1992b, 1992c), Wiltshaw(1998), Roddewig (1996), and Chalmers & Roehr(1993) discussed the way in which contagion can affect bulk of a property, and the adapted use of the Sales Allegory and Assets Approaches to appraisement the bulk of a attenuated property.
The respondents from the blast anniversary pinpointed the actuality that out of the impacts of contagion on land, Stigma is the bigger and best damaging aftereffect on the property.Sitgma is articular as a accident in bulk due to the added accident associated with a attenuated propertyeven afterwards remediation. Backdrop awash aural automated zoning are about discounted essentially by the bazaar for assorted affidavit such as bound another approaching use, bulk of clean-up, and abeyant accountability from achievement abutting to a attenuated site.
Stigma was again acquired from chargeless the hale bulk of a acreage and adding the broken bulk and the costs of claen-up. This was axiomatic on the afterward scenarios of the case studies.
Case Study1 and case Study1A- It was analysed that backdrop with aeriform appeal and added appearance has no acting and appropriately its stigma appulse is low.
Case Study2 – Stigma as a aftereffect of adjacency to contaminted armpit was acclimated as a acceding stick to accommodate the final price.
EXPERIENCE IS INEVITABLE; LEARNING IS NOT.
Nigerian practitioners allegation a broader and stronger bookish advancement in approach and analytical emperical assay on areas such as burghal economics, ecology accident assessment, market, and achievability analysis.
Basic adeptness of ecology contaminants and accident appraisement as appraisement cases involving attenuated backdrop ps added than one acceptable acreage of abstraction and as such should be advised with all inputs from all accommodating bodies. Certification of valuers is accordingly basal and will go a continued way to absolute prolification into the industry
More assignment is adapted in continous able development training to beforehand valuers admission to appraisement literature, and admonition amid those who bureau and those who undertake research.
Bridging the gap amid the accustomed appraisement techniques acclimated by Nigerian valuers and their abhorrence to abandon them for the added abreast methods to imrove the affection of their valuations. There is absolutely low akin od awareness, compassionate and acceptance of these new techniques by Nigerian valuers and this disability to underatand the theoritical abject basal their use is affiliated to their educational background.
The appliance of accident assay and statistical appraisement approaches accept been auspiciously acclimated in countries like UK and USA Sipan &Rahman(1996).
The Nigerian government should appropriately bifold their efforts to strengthen its ecology laws abnormally in the areas of administration and monitoring. There is no agnosticism that the Nigerian accompaniment ands federal government accept allowable ecology laws that can attempt favourably with those of UK And USA, but there weakness alway lies on administration and implimentation.
Both the federal and accompaniment governmnet in Nigeria should abstain the conception of authentic ecology behavior which fails to booty into anniversary the indigenious social, bread-and-butter characteristics in the country arch to abashing rather than clarity. Best of these behavior are burst and formulated afterwards contributions from abreast accumulation es or based on nationally generated baseline data. Participation of the bodies in activity conception and accomplishing is defective in Nigeria. Accomplishing and ecology are banal and din-don diplomacy bedridden by the addition and deepening corruption. Accomplishing and ecology agencies should be re-organised and re-oriented for bigger performance.
APPENDIX 1 : LETTER OF INTRODUCTION AND NOTIFICATION
INTERVIEWS: VALUATION OF CONTAMINATED LAND IN NIGERIA
Introduction and Notification
This abstraction forms allotment of a assay activity for a Masters Bulk from the aloft university with the ambition of accepting an compassionate of the appraisement of attenuated acreage in Nigeria. Please feel chargeless to accord and accord your aboveboard appraisement on this blue-blooded topic. All admonition will be advised as awful arcane and participoants will not be identified.
Thanks for participating.
Ugochinyere Ozurumba(MSC student).
APPENDIX 11: INTERVIEW WITH HEAD OF DEPARTMENT OF A LOCAL GOVERNMENT COUNCIL IN LAGOS.
Sir,According to UNEP(1992) appraisement of 2 billion hectares of acreage that was already advantageous has been badly attenuated in the accomplished 100 years, and new contagion is achievement created everyday.
What is your appraisement on how these acreage are achievement articular and the activity taken already contagion has been absolutely articular in your bounded government(objective 3).
Head of Department: abeyant sites are articular from a cardinal of primary sources, including absolute maps, aeriform photographs and cartography and again adjourned and prioritised according to an atributed baronial of risks. There are basically three stages of armpit assay in Nigeria
PHASE 1 – Board Study. The resultant admonition enables a basic accident appraisement to be conducted.
PHASE 11- Advancing study. Armpit assay is agitated out by an environmetal expert. Accident is again adjourned inorder to actuate the abeyant for abuse to receptors both on armpit and off-site from accustomed contaminants. Sampling and anal;ysis are adapted on another phase1 and appearance 11 investigation. Remediation is now planned, absorption on key liabilities and ‘Suitability for use’ claim inorder to administer the risks at minimum cost. Ecology and achievement assay to accommodated authoritative requirements.
Sir, How do you anticipate accident and uncertainties are congenital in the appraisement process?
Head of Department: Accident varies inversely with the adeptness of and ambiguity apropos remediation costs, accident in value, accountability for clean-up, abeyant off-site impacts and another factors. The aftereffect of any appraisement is deserted assertive if the approaching is accurately predicted. This is not consistently accessible as there is consistently an aspect of accident and ambiguity that the absolute bulk differs from the predicted estimate.
Sir, I would like to use this befalling to authentic my acknowledgment to you for acceding me this aeon of your time by answering my questions absolute clearly. Your addition is activity to be of absolute accent to my study. Acknowledge you.
Director: You are welcome.
APPENDIX 111: INTERVIEW WITH THE DIRECTOR OF MINISTRY OF LAND AND TOWN PLANNING IN LAGOS.
Sir, what is your consequence on the appraisement techniques currently in use by Nigerian Acreage Surveyors and Valuers(Objective 2 and 3)
Manager: Yes, I am assured this question. To be honest with you, the majority of the Nigerian practitioers are not deserted blind of, do not understand, and had not been appliance any of the abreast methods. Initially, Nigerian practitioners who were accomplished in the United Kingdom ancient their convenance according to the RICS guidaince and they were agitated out auspiciously due to their adherence and brighter bread-and-butter altitude to amuse the clients. Today, due to the low akin of bread-and-butter activities as a aftereffect of the bread-and-butter recession, low control ante and aeriform bulk of architecture materials, valuers could no best use the Beforehand acclimation of valuation. The acumen was the bread-and-butter animation and unstability to abutment the Beforehand method. The Beforehand acclimation provides basal bulk appraisement that is lower than the bazaar prices thereby acute adjustments of basic variables to aftermath authentic basal values.
The Depreciated Advancement Bulk acclimation produces estimates afterpiece to bazaar prices and is accordingly added astute acclimation of anniversary Assets address backdrop in the accustomed bread-and-butter climate.
The Beforehand Appraisement acclimation in Nigeria has perculiar problems. The alien appraisement table broadly acclimated assumes anniversary hire paid in arrears admitting hire is usually paid in two to three years in advance. There is discrepancies in the appraisement bulk accustomed at appliance theories acquired from UK abstract and the absolute ethics produced by bounded bazaar evidence.
The Sales Allegory Admission could be advantageous in analysing accident and stigma, but best about is acutely bedfast by the abridgement of acceptable data.
Sir, I appetite to use this oportunity to authentic my abstruse acknowledgment for your backbone thoughout the advance of this interview. Your contributions would be absolute helpfull to my research.
APPENDIX 1V : INTERVIEW WITH THE DIRECTOR OF PLANNING HOUSING AND THE ENVIRONMENT IN LAGOS METROPOLIS.
Sir, We are now address the bulk of acceptable an industrialised nation. What are the impacts of acreage contagion on the acreage industry in Nigeria
Director: The ecology implications of acreage contagion is acutely austere assuming a abeyant blackmail to animal health, the accustomed and congenital environment, and a accident to beforehand and about-face decidedly in burghal areas. Astringent cases has rendered acreage uninhabitable and acutely constrain acreage use options for decades. There is additionally abatement in acreage values, too abundant appeal on attainable acreage for development and appropriately acceleration in acreage prices. Backdrop that are abutting to attenuated sites are stigmatized authoritative auction of such acreage difiicult.
About 80-85% of the industries in Nigeria are amid in Lagos Metropolis. With this aeriform absorption of industries and bartering activities, the accompaniment faces grave burghal crisis associated with acreage contamination.
Finally, Is there any regulations in abode administering the activity of sale, and use of attenuated land?
Director: Yes there is acclimation in abode administering the use and auction of acreage that is contaminated. But these regulations are not abundantly enforced. Best buyers of bartering acreage accept ecology armpit appraisement able but not for residential property. A client of a bartering acreage that did not accept accident appraisement done to quantify the accident of contmaination is not able-bodied abreast which is usually the case.
Sir, I appetite to acknowledge you distinctively for your time and your admirable addition to this study. Acknowledge you.
Director: You are acceptable and acceptable luck.
APPENDIX V: INTERVIEW WITH MANAGER OF PHYSICAL PLANNING AND URBAN DEVELOPMENT
Sir, The bigger botheration in appraisement of attenuated acreage is the attendance of stigma. How do you actuate stigma absorbed to a attenuated property(objective 1)
Manager: Stigma is the balance accident in bulk afterwards all costs of remediation, including allowance and ecology costs accept been allowed.
Stigma is a bazaar attrition due to the abhorrence of approaching bloom risks, acknowledged and banking liabilities. This is because alike afterwards clean-up, the bazaar bulk will booty best time to acknowledgment to the apple-pie acreage bulk akin , and for the appulse of the stigma to fade. There is additionally fluctuations in bulk and hire of another backdrop in abutting adjacency to the area. Stigma can be acquired from chargeless the hale bulk of the acreage and deducting the broken bulk and the costs of clean-up. The hale bulk was acquired from either a acquirement acceding that had bootless due to the analysis of contamination, a antecedent sale, or alike a valuation.
What is the accustomed attitude of Acreage Surveyors and Valuers on attenuated properties?(Objective 3).
Manager: The accustomed attitude of practitioners is to abstain contagion and the abeyant for contagion in their valuations. The government appropriately does annihilation on attenuated acreage until back a development plan for the acreage is fatigued up. If there is substatial contagion on a awash property, the borough enters into acceding with the buyers on the remediation activity and the costs. Usually, the acreage is awash lower than the bazaar bulk instead of remediating afore selling. This is usually because of the botheration of chargeless the the nature, bulk and admeasurement of contagion and the costs for remediation.
Sir, I ambition to authentic my abstruse acknowledgment to all who accept alternate in this study.
Acks, K ‘ Appraisement of Ecology Damages to Absolute Estate. 1995 Attainable at:
Adair, A ; Hutschinson, N; MacGregor, B; McGreal, S & Nantha-Kumaran, N.. An Assay of Appraisement Variation in the UK Bartering acreage market, Journal of appraisement and Investment, 14(5) 1996 : 34-47.
Ademola, K & Onishi, T Spatial Determinants of Burghal acreage use change in Lagos, Nigeria, 2006.
Ajayi, C. Acreage Beforehand and Analysis. Ibadan: De-Ayo publications.1998.
Ajibola, M, Appraisement Inaccuracy: An Examination of causes in Lagos Metropolis. A Journal of Acceptable Development. Vol 3, no 4; December 2010.
Alkali, Planning Acceptable burghal Beforehand in Nigeria: Challenges and Strategies. 2005.
Antai ,I Appraisement of Attenuated acreage in Sweden: A Comparative Study.2003.
Baum, A & Crosby, N . Acreage Beforehand Appraisal, 2nd edition. London: 1995. Routledge.
Baum, A ‘Forward’ in Ajayi, C(1998) ‘Property Beforehand Appraisement and Analysis. De Ayo publication, Ibadan. Page vi-lx.
Bello, V & Bello, M; The Appraisement of Ecology Attenuated properties: The Position of the Nigerian Acreage Surveyors and Valuers in the All-around Context. Journal of acreage use and Development Studies. Vol1, no1, 2005.
Bello, V & Bello, M; The Influence of Abreast Modes on Appraisement Convenance in Nigeria. 2007.
Bond, S, The Valaution of Attenuated land- Methods Adopted in the UK and New Zealand. Journal of acreage Beforehand and Finance, vol18, no 2, 2000,pp 254-271.
Bosman, R, & Arendt, K (eds) Attenuated Clay ’95. The 5th Alternate Conference. October- November. Kulwer Bookish Publishers. Appraisement Pp75-83.
BRE (200$), Ambiance Profiles. BRE website, Attainable from:
Browner, C, Ecology Aegis Bureau aperture comments at Brownfields, 1998.
Chalmers, J & Roehr, S Issues in the Appraisement of Attenuated Properties. Appraisement Journal. January 1993, pp.28-41.
Chan, N, Stigma and its Appraisement Methods: How Australlian Appraisers Appraise Attenuated Land, The Appraisement Journal, 2000 . pp.432-440.
Chan, N, Attenuated acreage Appraisement and the botheration of Stigma. 2001.
Cheng, J; Proverbs, D; Oduoza & Flemming, C, Arise Green and Intelligent Buildings: The Bread-and-butter and Ecology Impact- A UK Perspective.
Clarinet , Acceptable administration Of Attenuated Land: An Overview, 2002.
Colangelo, R & Miller, R Ecology Armpit Assessments and Their Appulse on acreage value: The Appraisers Role. Appraisement Institute. Chicago, USA. 1995.
Coming Clean, Supra Agenda 7 at 1-2.
Connor, P, Business Claimed acreage Valuation. Attainable on: http://e-articles. Info/e/a/tittle/business-personal-property-valuation.
Contaminated Acreage and Remediation: A World- Chic Industry. UK Know How. Attainable on: www.uk.ti.gov.uk.
Denner, J & Lowe, M;UK Attenuated acreage Activity Developments, In van den Brink, W..1995.
Environmental bureau website. Attainable on: http://www.environment-agency.gov.uk.
Environment aegis Act, 1995.
Gay, L. R., & Airasian, P. Educational Research: Competencies for Assay and Applications. No7. 2003, New Jersey, Merrill prentice-Hall.
Gibson, Y, ‘ Strategic acreage management’ How Can Bounded Ascendancy Develop a acreage Strategy’Property Management. Vol 12. 1994. no3,pp.9-14 MCB University Press, 0263-7472.
Goldberg, M.A., Transportation, Burghal acreage Ethics and Rents: A Synthesis acreage Economics, 46, 2 may 1970, 153-162.
Guilding Attack for acreage Contamination, 2010.
Gummersson, E., Qualitative Methods in Managemetn Research. Sage Publications. London.1991.
Handley, J., The column Automated Landscape, Groundwork , 1995.
Hoesli, M., & MacGregor, B., Acreage Investment: Attack and convenance of portfolio management. Pearson Apprenticeship Ltd, 2000, Uk.
Order a unique copy of this paper