Home News Leasing industry deals in Nigeria rise to N1.44 trillion
Leasing industry deals in Nigeria rise to N1.44 trillion

Leasing industry deals in Nigeria rise to N1.44 trillion

0
0

The growth of the Nigerian Leasing Industry has continued its trends as the Lease Volume grew in the years 2017 to N1.44 trillion against the N1.26 trillion recorded in the previous year therefore representing a growth of 14.5%

The Growth was associated to the relative stability in the macroeconomic environment, the increase in demand and the entry of new individuals into the industry as well as the increased value of assets due to the depreciation of the Naira as stated by the Equipment Leasing Association (ELAN).

Analysis shows that oil and gas sector takes the lead with N449 billion, representing 28%, while the transportation followed closely with N355 billion, representing 20% of the total portfolio.

The manufacturing sector, on the other hand, moved to N217 billion from N180 billion in 2016, while agriculture, government, telecommunications, education, healthcare, construction and consumer sectors recorded considerable growth.

Andrew Efurhievwe, the Chief Executive Officer/ Executive Secretary of ELAN stated that Finance lease remained the predominant type of leasing accounting for 65% of the transactions

Finance lease, according to the Executive Secretary/Chief Executive Officer, ELAN, Andrew Efurhievwe, remained the predominant type of leasing, accounting for 65 per cent of the transactions, while operating lease continued to make strong showing at 35 per cent.

He stated that in recent times that there has been a noticeable increase in marketing shares of operating lease due to the increase of popularity among lessors and the response the current market dictates, especially from corporate customers who require service oriented lease.

He further stated that banks still takes the lead, particularly financing big ticket leases, and providing funds to lessors for lease transactions while the non-bank lessors accounted for about 80%of the customer base and that even as the industry continues to attract investors from all sectors who have desires to a means to tap into the opportunities in the leasing industry.

In assets categorization, he stressed that vehicles take the lead with about 52% of the leased assets, which have been major attraction in recent times. he further stressed that market projections indicates that the leasing industry will blossom, given the wide financing gaps in all sectors of the economy, the increasing relevance of leasing to capital formation with the challenge of access to finance, especially to MSMEs and the expected government’s commitment to the various initiatives aimed at consolidating growth and development in the economy.

While calling on government to continue to support the leasing industry through a more favorable operating environment, he stated that the capacity of the industry needs to be strengthened and sustained to enable it perform its developmental role effectively.The funding challenge, according to him, is a key area of concern, calling on government to intervene by allowing leasing companies to access pension and the various intervention funds for development in specific sectors of the economy.

YOUR COMMENTS

Your email address will not be published. Required fields are marked *

three × 5 =

StartUpper of the Year Challenge

WP2FB Auto Publish Powered By : XYZScripts.com
Language Options »