Appreciating what we have: Why asset valuation is Nigeria’s missing economic strategy

Nigeria is often described as “asset-rich but cash-poor.” It is a convenient phrase, but it also hides an uncomfortable truth: we do not truly know the value of what we own, and we have not built systems to make our assets work for us.

This reality came into sharp focus during a recent technical forum hosted by the Institute of Chartered Accountants of Nigeria (ICAN), Ikeja and District Society. A technical paper titled “Valuing What We Own: The Power of Asset Valuation in Building a Prosperous Nation”, delivered by estate valuer Mrs N. Amadi, raised a fundamental question that policymakers have largely ignored: how can a nation manage what it has never fully identified, valued, or strategically deployed?

Across Lagos, Abuja, Port Harcourt, Benin, Umuahia, and other urban centres lie countless idle public assets: abandoned government buildings, moribund enterprises, uncompleted projects, and underutilised land holdings. These are not just relics of policy inconsistency; they are reservoirs of what economists call “dead capital”. They sit on balance sheets, in archives, or in physical decay, contributing nothing to national productivity because they have not been properly valued or integrated into economic planning.

Asset valuation is not a technical footnote in accounting. It is a strategic tool. At its core, valuation is a systematic process that applies professional methodologies and forward-looking assumptions to determine the economic worth of assets or enterprises. When governments and corporations declare asset values, they are making statements about solvency, capacity, and future potential. For a nation, asset valuation should be the foundation of infrastructure planning, fiscal strategy, and development prioritisation.

Nevertheless, Nigeria’s economic governance has historically preferred debt to discipline. Federal, state, and local governments routinely borrow to finance budgets, infrastructure, and recurrent expenditure. Borrowing is not inherently bad, but Nigeria’s pattern is troubling: loans are often contracted without a parallel strategy to optimise existing assets. The result is a cycle of rising debt service costs, fiscal fragility, and constrained development spending.

A credible alternative exists. Strategic asset valuation can unlock revenue without the burden of interest payments and principal repayments. Properly valued assets can be renovated, concessioned, leased, securitised, or repurposed to generate sustainable income. Many countries have transformed dormant public assets into revenue streams through public-private partnerships and structured asset management frameworks. Nigeria has barely scratched the surface.

Beyond revenue, valuation is central to economic planning. Governments cannot plan infrastructure effectively when they lack a comprehensive and accurate inventory of national assets. Decisions about roads, housing, energy infrastructure, and public facilities often proceed with limited data on existing capacities. This leads to duplication, waste, and poorly targeted capital expenditure. A national asset register, supported by professional valuation, would turn guesswork into strategy.

Investment is another casualty of opacity. Foreign direct investors are cautious in environments where asset ownership, valuation, and governance frameworks are unclear. Transparent valuation signals seriousness, stability, and readiness for partnership. Investors want to know what exists, what it is worth, and how it can be deployed. Without this clarity, Nigeria will continue to struggle to attract long-term, productive capital.

Asset valuation also has social implications. Infrastructure projects often require land acquisition and community resettlement. Without accurate valuation, compensation becomes arbitrary, contentious, and frequently unjust. Proper valuation frameworks ensure fairness, reduce conflict, and strengthen trust between the state and citizens. This is not just an accounting issue; it is a governance and social contract issue.

However, it is important to acknowledge a critical caveat: valuation alone does not create wealth. Nigeria has no shortage of reports, audits, and policy documents. The missing link is political will, governance reform, and institutional capacity. Assets must not only be valued but also actively managed, transparently reported, and insulated from political capture. Without these reforms, valuation risks becoming another technocratic exercise with little real-world impact.

As 2026 unfolds, Nigeria faces a strategic choice. Continue borrowing to fund deficits while ignoring the vast stock of underutilised assets, or undertake a national asset valuation and optimisation strategy that repositions public wealth as a development engine. The latter requires coordinated action across federal, state, and local governments, supported by professional bodies, regulators, and private sector expertise.

Nigeria’s transition from a struggling economy to a prosperous one will not come solely from new loans, new taxes, or new slogans. It will come from appreciating what we already have and making it work. The vault is not empty. The challenge is that we have not bothered to inventory, value, and manage its contents with the seriousness they deserve.

Asset valuation is not a silver bullet, but it is a necessary starting point for a nation serious about fiscal sustainability, investor confidence, and equitable development. Until Nigeria learns to see its assets as a strategic balance sheet rather than background scenery, the paradox of being asset-rich and cash-poor will persist.

 

Dr. Kingsley Ndubueze Ayozie, FCTI, FCA, is a Public Affairs Analyst and a Chartered Accountant based in Lagos.