ELAN canvasses leasing for economic development

The Equipment Leasing Association of Nigeria (ELAN) recently canvassed the use of equipment leasing to facilitate the achievement of developmental plans as the government works to pull the economy out of recession.
In its yearly review, the Association stated that ¡°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.

Leasing thrives whether the economy is booming or in a recession. Highlighting the essence of leasing to the growth of the Nigerian economy, the Association stated that, 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.

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 agric value chain.

Also, in the works and housing, transportation, health and education sectors, much can be achieved with leasing. Equally, leasing would help to mobilise access to the much needed equipment for productive ventures, more so 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 N4.83trillion to the economy.

Today, the impact of leasing is pronounced in all sectors of the economy, enhancing capital formation, generating employment and creating wealth.

The emerging opportunities in the Nigerian economy amidst recession quite obvious, due to the increasing difficulties of mobilising capital for outright purchase.
However, what is paramount is the need for Government to maximize this unique financing option to achieve the desired economic growth.
The Association therefore called on Government to continue to give the right support to the industry to enable leasing contributes maximally to economic development of the nation.

While the Equipment Leasing Act 2015, provides a major platform for the development of the leasing industry, there is the need for further specific interventions such as, facilitating appropriate funding mechanism for leasing and direct policy on governments utilisation of leasing in its developmental agenda.