ELAN Seeks Govt Support For Devt Of Leasing Sector

ELAN Seeks Govt Support For Devt Of Leasing Sector

With a 27.3 per cent growth in outstanding lease volume from an estimated N869 billion in 2014 to N1.1 trillion last year, the Equipment Leasing Association of Nigeria (ELAN) has called on government to offer the nation’s leasing industry the right support to enable it improve contributions to national economic development.
Addressing participants during the 14th National Lease Conference of the association, held recently in Lagos, chairman of ELAN, Chuka Onwuchekwa, commended government on its planned diversification of the economy to reduce reliance on revenues from oil and gas exports.
Noteworthy, he said, is the focus. on agriculture, mining and manufacturing as well as massive investment in infrastructure, urging the administration to utilise leasing as a tool for achieving set economic objectives at a time like this.
Commenting on the theme “Leasing and Economic Development in Challenging Time,” Onwuchekwa said: “Assets worth over N5.8trillion have been financed in the past 10 years, and can significantly improve with the right support for the industry”.
Leasing attributes which centre on easy and convenient access to capital equipment, can be brought to bear to support the planned massive investment in infrastructure, in power, road and rail, agriculture, manufacturing and solid minerals, that would stimulate production and employment.  He therefore urged the Government to utilise equipment leasing to achieve these policy initiatives to stimulate the economy.
The impactful visibility of leasing is increasing in Nigeria, contributing to capital formation in the economy and creating wealth, he added.
He noted that the global economic developments in the recent  times, especially the decline in oil price have continued to impinge greatly on Nigeria’s key macroeconomic variables, with consequential slow growth recorded in major sectors of the economy.
Highlighting the role of leasing in the current efforts of government to address the recession in the economy, he stated  that equipment leasing has gained significant global recognition as a creative financing alternative for the acquisition of capital assets used to facilitate access to the much-needed equipment generating an annual average of over $850 billion.
A statement by the association on Wednesday said the appeal of leasing lies in the fact that it meets the diverse equipment needs of the lessee (user) be it government, large organisations or small businesses.
“In the United States of America for instance, leasing remains the single most widely–used method of external finance, representing 30 per cent of investment in capital equipment. Many developing countries such as Brazil, Indonesia, Pakistan, Zambia, South Africa and Ghana, are equally using leasing to stimulate investment and create jobs. In these countries, leasing is at the forefront of investment in the extractive industries, transportation, agriculture, telecommunications, roads and other infrastructure.
Commenting on the attendance at the conference, the chairman said this year’s  “remains the highest gathering of stakeholders in the Nigerian leasing industry, which has become a major platform for the discussion of pertinent issues affecting the development of the leasing industry and the economy at large”.