Leasing volume rises from N780bn to N869bn

Monjola Sotubo 16:03 - 23 April 2015

Chairman, Board of Directors of the Equipment Leasing Association of Nigeria (ELAN), Chuka Onwuchekwa

Following analysis of various segments, the oil and gas sector accounted for 31.6 per cent of the lease volume while the transportation sector came second with 15.8 per cent.

Outstanding lease volume in Nigeria has risen from N780 billion in 2013 to N869 billion in 2014.

The manufacturing sector was found to have grown by 11 per cent while government, agriculture and telecoms grew by more than five per cent.

Vehicles emerged as the most leased asset with 50 per cent while Plant/Machinery amounted to 29 per cent.

Office Equipment recorded 10 per cent while Aircraft/Vessels had two per cent, and others (including house hold equipment) nine per cent.

According to the Chairman, Board of Directors of the Equipment Leasing Association of Nigeria (ELAN), Chuka Onwuchekwa, finance leases dominated with 75 per cent while operating leases represented 25 per cent

“Operating lease will continue to deepen its market penetration with the increasing demand for the product especially from corporate customers, who are now redefining their business strategy to focus on their core business activity and the outsourcing of non-core services,” he said.

The Central Bank of Nigeria (CBN) guidelines on the regulation of finance leases are also expected to cause an increase in operating leasing.