At the 2024 National Leasing Conference in Lagos, stakeholders underscored equipment leasing as a pivotal financing solution to bridge Nigeria’s significant funding shortfall for Micro, Small, and Medium Enterprises (MSMEs).
Organized by the Equipment Leasing Association of Nigeria (ELAN), the conference highlighted the theme, “Equipment Leasing: The Creative Financing Alternative in Today’s Reality,” as a potential avenue to fuel MSME growth and broader economic resilience.
Bonaventure Okhaimo, Chief Operating Officer of the Development Bank of Nigeria (DBN), noted that traditional financing sources, including banks and government initiatives, currently meet only a fraction of the N13 trillion funding gap, having provided just N1.2 trillion in MSME funding so far.
Okhaimo stressed that leasing could serve as a practical tool for MSMEs, allowing businesses to acquire equipment as collateral to secure additional financing.
“With over 100 leasing firms in Nigeria holding a total of N4.19 trillion in outstanding leases—a growth of 28.7%—the leasing industry has demonstrated its capacity to support MSMEs, promote entrepreneurship, and drive productivity across various sectors,” Okhaimo stated.
Echoing this sentiment, DBN’s Chairman, Elizabeth Ehigiamusoe, emphasized that equipment leasing represents a strategic financing model that can bolster Nigeria’s “Renewed Hope Agenda.” She noted that leasing can empower small businesses, drive infrastructure development, and foster job creation, all while enhancing productivity across industries.
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“The leasing sector has consistently supported economic development, with outstanding leases amounting to N4.19 trillion in 2023 alone and over N20 trillion contributed to Nigeria’s capital formation since inception,” said Ehigiamusoe. She highlighted leasing’s global impact, pointing to an annual business volume of over $1.5 trillion worldwide, contributing approximately 1.5% to global GDP.
The conference further spotlighted the projected growth of Nigeria’s financial leasing market, anticipated to reach $316.7 million by 2030, as per Equipment Leasing Registration Authority CEO, Donald Wokoma. Under the Nigerian Equipment and Leasing Act (2015), leasing companies are regulated to ensure structured relationships between lessors, lessees, and other stakeholders.
The Managing Director of C&I Leasing called for industry advocacy on supportive policies, tax incentives, and regulatory reforms to further strengthen the leasing sector’s contribution to economic growth. Meanwhile, KPMG’s Associate Director, Olasunkanmi Odede, advised businesses to proactively manage risks, adapt to market changes, and ensure sufficient cash flow to navigate the challenging business landscape.
With leasing poised as a versatile financing option, industry leaders envision it playing an instrumental role in addressing the MSME funding deficit, thus fostering economic stability and growth in Nigeria.
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