Methods of Intellectual Property Valuation in Nigeria: Preference of Estate Surveyors and Valuers in Southwest, Nigeria.

Abstract

Estate Surveyors and Valuers (ESVs) are by laws, education and training recognised and adjudged as the most qualified professionals to determine the value of interests in property in Nigeria. In doing this, many processes and ingredients are necessary to be blended together to arrive at acceptable and market compliance value. One of such tools or ingredients are the methods of valuation adopted in the course of the valuation processes for different purposes and at a specific point in time. This study evaluates the preference of ESVs among the various methods of IP valuation in Nigeria. Total number of 247 questionnaires was used to elicit data from the practicing ESVs in Southwest, Nigeria. The data obtained were analysed with the use of Relative Importance Index (RII). It was found that the sampled ESVs preferred the use of Rule of Thumbs methods of IP valuation on the basis that the methods are very easy to use and devoid of rigorous calculations. Findings further showed that ESVs preferred the use of Discounted Cash Flow (DCF) and premium profits approaches as variants of income-based methods. The study therefore recommended the inclusion of valuation of IP in the valuation curricula of institutions offering Estate Management in the study area.