By Destiny Eseaga
The Federal Government has been advised by the Equipment Leasing Association of Nigeria (ELAN) to take full advantage of equipment leasing in order to achieve its developmental plans in 2018, as it prepares to pull the economy out of recession.
Nigerian leasing industry was estimated to have grown its assets to over N6.9 trillion in the past ten years, according to a recent statistics released by ELAN.
Commenting on the state of the economy, Executive Secretary of ELAN, Mr. Andrew Efurhievwe, noted that leasing thrives when the economy is in a slump.
His words: “Equipment leasing globally, has been established as a creative financing alternative that facilitates access to capital equipment. The whole essence of leasing is to enhance the planning, improvement and development of any economy by building and supporting productive ventures. “Essentially, in achieving government’s plans for self sufficiency in food production for the nation, leasing can facilitate the provision of basic equipment for the entire agricultural value chain. Also, in the works and housing, transportation, health and education sectors, much can be achieved with leasing.”
Highlighting the essence of leasing to the growth of the economy, Efuurhievwe explained: “Leasing has the capacity to drive the recovery and growth agenda of government. The planned huge investment in infrastructure, agriculture, education and job creation, creates a wider scope for leasing participation in meeting the expected demand for capital equipment.
“Equally, leasing would help to mobilize access to the much needed equipment for productive ventures, much more when outright purchase is difficult especially to the micro, small and medium enterprises (MSMEs), thereby strengthening their capacity for wealth creation.
“Already, leasing has been contributing to the development of the Nigerian economy. In the past 15 years, leasing has contributed over N4.83 trillion to the economy. Today, the impact of leasing is pronounced in all sectors of the economy, enhancing capital formation, generating employment and creating wealth.”