By Olalekan Akinwumi
For decades, access to business finance in Nigeria has largely depended on traditional collateral such as land, buildings, machinery, and other tangible assets. While these assets remain important, they no longer represent the principal source of value for many modern businesses. Today’s economy is increasingly driven by innovation, technology, brands, software, creative works, and proprietary knowledge. The challenge is that these assets are valuable, but often remain invisible to lenders.
Intellectual property (IP), including patents, trademarks, copyrights, industrial designs and software, has become a strategic business asset. Nigerian technology companies, manufacturers, pharmaceutical firms and creative enterprises generate significant value from intellectual property, yet many struggle to obtain finance because those assets are rarely recognised as acceptable collateral.
The landscape is changing. International Valuation Standards (IVS), particularly IVS 210 – Intangible Assets, now provide globally accepted methodologies for valuing intellectual property in a transparent, consistent and credible manner. By applying recognised income, market and cost approaches, valuers can provide independent opinions of value that support lending, investment, financial reporting, taxation, mergers and acquisitions and dispute resolution.
Professional standards alone, however, are insufficient without competent practitioners and an effective regulatory framework. This is where the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) plays a pivotal role. The ESVARBON Regulations 2025 formally recognise Business Asset Valuation and Intellectual Property Valuation as specialised areas of professional practice. This important reform aligns Nigeria with international developments and strengthens confidence in valuation reports prepared by registered Estate Surveyors and Valuers.
The Regulations acknowledge that valuing intangible assets requires specialist competence. Intellectual property possesses unique legal, commercial and technical characteristics that demand expertise beyond conventional valuation. By promoting specialisation, ESVARBON is helping to build the professional capacity needed for IP-backed lending, investment and securitisation.
Nigeria’s policy environment is also becoming more supportive. The National Intellectual Property Policy and Strategy (NIPPS) encourages the commercialisation of intellectual property and recognises the importance of valuation in unlocking its economic potential. Likewise, the Investment and Securities Act 2025 strengthens the legal framework for innovative financing structures and asset-backed capital market transactions.
The commercial viability of IP-backed finance has already been demonstrated internationally. In the United Kingdom, Inngot has partnered with major financial institutions, including NatWest and HSBC, to support lending against intellectual property. By combining rigorous IP identification, valuation and risk assessment, innovative businesses have secured finance using intangible assets that traditional lending models often overlooked. The lesson is clear: where credible valuation standards, specialist expertise and lender confidence exist, intellectual property can function as bankable collateral.
Nigeria is well positioned to replicate this success. The country possesses a vibrant technology ecosystem, globally recognised creative industries, research institutions, manufacturers and innovative entrepreneurs whose intellectual property represents substantial unrealised value. Unlocking that value requires collaboration among government, regulators, financial institutions, investors and valuation professionals.
Commercial banks should begin developing lending products for IP-rich businesses, while development finance institutions should incorporate intellectual property valuation into innovation financing programmes. Investors and capital market participants should also explore IP-backed securitisation and other structured finance solutions that can expand access to capital.
Estate Surveyors and Valuers have a strategic responsibility in this emerging ecosystem. Guided by IVS and regulated by ESVARBON, they provide independent and objective valuation opinions that underpin confidence in financial transactions. Their expertise will be central to converting intellectual property from a legal right into a financeable business asset.
Nigeria does not suffer from a shortage of assets; it suffers from a shortage of recognised assets. Every day, innovators, software developers, manufacturers, universities and the creative industry create intellectual property that remains undervalued and underutilised. Through IVS-compliant valuation, supported by the ESVARBON Regulations 2025, these hidden assets can be transformed into bankable capital.
The future of business finance will not belong solely to those who own the most land; it will increasingly belong to those who create the most knowledge. Nigeria now possesses the international standards, regulatory framework and policy direction required to unlock the value of intellectual property. The next step is for financial institutions, investors and businesses to embrace IP as the new collateral. When that happens, the nation will not merely be valuing intangible assets; it will be financing innovation, accelerating enterprise growth and strengthening a knowledge-based economy.
…ESV Olalekan O. Akinwumi is the Principal Partner of Lekan Akinwumi & Co. (Estate Surveyors & Valuers) and a PhD Researcher. He specialises in Business Asset and Intellectual Property Valuation, based in Lagos, Nigeria