The leasing industry in Nigeria recorded a growth of 23.2 per cent in 2024, with the value of outstanding leases rising to N5.17tn, up from N4.19tn in 2023, the Equipment Leasing Association of Nigeria has stated.

In a statement from the association on Sunday, new leases also reached a peak of N973.3bn during the period, as the sector sustained its resilience amid persistent macroeconomic and global challenges.

According to data from the ELAN, the industry’s contribution to the Nigerian economy over the past decade is estimated at N24.6tn.

A breakdown of sectoral distribution showed that the oil and gas sector accounted for the largest share with N1.38tn or 26 per cent of total leases. Transportation and logistics followed with N1.18tn or 21 per cent, while manufacturing recorded N734.3bn, representing 13 per cent.

The telecoms sector posted N462.2bn (9 per cent), agriculture N378.6bn (8.5 per cent), and government N345.3bn (7.5 per cent). Other sectors, including education and healthcare, accounted for N686bn or 15 per cent.

ELAN attributed the growth to the surging cost of assets due to the removal of petrol subsidies and the floating of the naira, as more funds were needed to finance leases. Other factors include new entrants into the market, increased awareness about leasing, and the resilience and innovation of industry players.

Finance lease maintained dominance with 52 per cent of total transactions, though operating lease gained traction among corporate clients who prefer outsourcing logistics and transport services. Many lessors have shifted from finance leases to operating leases to manage risks and meet outsourcing demands.

Vehicle leasing remained the most leased asset, accounting for 53 per cent of the total asset base. This includes staff buses, haulage trucks, and commercial vehicles used for daily operations.

ELAN projects continued growth for the leasing sector, driven by government investments in infrastructure, particularly in transportation, power, healthcare, construction, and agriculture.

The commencement of operations by the Equipment Leasing Registration Authority (ELRA) is also expected to accelerate industry development by fully implementing the Equipment Leasing Act 2015.

The PUNCH reported that the leasing sector in Nigeria has contributed over N16.3tn to the economy in the last 10 years.