The Equipment Leasing Association of Nigeria (ELAN) has announced that the Nigerian leasing industry recorded a growth of 23.2 per cent in 2024.
It also said the sector recorded a N5.16 trillion volume of transactions in 2024, compared to the N4.19 trillion it achieved in 2023.
The association added that leasing contribution to the Nigerian economy over the last decade is estimated at N24.6 trillion.
It explained that the leasing industry’s performance in 2024 was driven largely by the oil and gas, transport and logistics and manufacturing sectors.
According to ELAN: “The oil and gas sector represented 26 per cent of the outstanding leases with N1.3 trillion, followed by the transportation and logistics sector with N1.1 trillion, 21 per cent. Manufacturing had N734 billion, with 13 per cent; telecoms – N462 billion, representing 9.0 per cent.
“Agriculture N378 billion with 8.5 per cent; government N345 billion (7.5 per cent) while others (including healthcare and education) generated N686 billion, accounting for 15 per cent of the volume.”
The association said the growth in lease volume was driven by the astronomical rise in the cost of assets, occasioned by two of the government’s cardinal reforms—the removal of petrol subsidies and the floating of the Naira—as more money was required to finance leases.
Other factors, according to ELAN, include more new entrants and investment into the industry; increasing innovations and strong resilience by the industry’s players; increasing level of awareness of the benefits of leasing, which continues to be more compelling given the increasing cost of assets.
It said that finance lease maintained its lead position with 52 per cent of the total transactions, with operating lease increasing its market share in recent times, due to its continued preference and patronage by corporate bodies.
It said that in a bid to create a further niche, some of these lessors have set up workshops of their own, providing services to outside customers as well.
ELAN pointed out that vehicle leasing has remained dominant as the largest leased asset segment, constituting about 53 per cent of the leased assets.
“Vehicle leasing, including staff shuttles, commercial buses, trucks for haulage, and operational vehicles, continued to be a major attraction in recent times. Indeed, the industry is expected to maintain its resilience, given the growth potential of the industry – the wide financing gap in various sectors of the economy and increasing demand for creative financing options to meet asset needs by the investing public, the economic agenda of the governments across all levels especially, increasing spending in critical infrastructure in key sectors such as transportation,” ELAN said.
