The Nigerian leasing industry continued its growth trend in 2017, as the outstanding lease volume grew to N1.44 trillion, against N1.26 trillion in 2016, representing a growth of 14.5 per cent.
The growth, according to the Equipment Leasing Association (ELAN), was facilitated by the relative stability in the macroeconomic environment, increasing demand, new entrants in the industry and increased value of assets due to the depreciation of the Naira.
Analysis of the volume by sector shows that oil and gas took the lead with N449 billion, representing 28 per cent of the total portfolio, while transportation followed with N355 billion, representing 20 per cent.
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.
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.
In recent times, he said, there has been increase in the market share of operating lease due to its growing popularity among lessors, as a risk mitigating mechanism against default and response to current market dictates, especially from corporate customers who require service-oriented lease.In terms of transaction value, he said the banks still takes the lead, particularly financing big ticket leases, and providing funds to lessors for lease transactions.
Read more: Guardian