AS the consequences of the gale of sweeping reforms in the nation’s financial industry continue to reverberate, indications from the nations leasing industry has shown that the industry maintained its growth in 2009.
According to official statistics released by the Equipment Leasing Association of Nigeria (Elan), returns from the association’s members alone in 2009, indicate an outstanding lease volume of N437 billion, representing a growth rate of 25 per cent over the previous year’s figure approximated at N350 billion.
A further breakdown of the statistics shows 17 per cent drop in growth rate of the lease volume considering the 42 per cent growth in 2008 as against 25 per cent in 2009.
The research also revealed that the industry has maintained an impressive steady growth within the past five years rising from N115 billion in 2005, N118 billion in 2006 and N189 billion in 2006, hitting record breaking figures of N350 billion in 2008 and N437 billion in 2009.
Sectoral analysis of the study shows that oil and gas and manufacturing sectors continued their dominance on the leasing chart accounting for more than 60 per cent of the total transaction in the industry followed closely by transportation which has been recording remarkable results in recent years due to the rising demand for new cars, commercial buses and trucks mainly for haulage.
According to industry sources, the achievements recorded in the leasing industry within the period in spite of the fluctuations in the economy is based on the fact that leasing is creative finance option that broadens product range in the financial services industry without necessarily locking the huge sums of capital that have competing needs.
The investigation revealed that most of the items leased include medium, light and heavy duty vehicles of all sorts, production machinery, power generating sets, house hold utilities, Industrial and office equipment.
Throwing more light on the activities of the association, the report stated that the association recorded tremendous success in its membership drive as the membership rose to 520 from 350 as at last year, cutting across corporate, associate and individual membership categories.
In his assessment of the above developments, Mr. Collins David-Ikpe, chairman of the association, noted that, though the 25 per cent growth rate recorded by the leasing industry last year was the least within the last five years, it was reasonable considering the debilitating effects of the current global economic meltdown and the current reforms in the country’s banking sector.
David-Ikpe highlighted a number of factors which accounted for the step down in the growth rate recorded last year to include the liquidity crunch which incapacitated both the banking and non-banking leasing companies’ capacity to lease out equipment.
He said the appreciable growth in the association’s membership and activities is an indication of the increasing penetration of leasing business in Nigeria attributing it to unique products and services offered by leasing companies.
David- Ikpe assured that the association would continue to evolve proactive strategies aimed at stimulating and sustaining a viable leasing culture in Nigeria and called for the support of all stakeholders for the association’s efforts towards supporting the socio-economic development of Nigeria.
According to official statistics released by the Equipment Leasing Association of Nigeria (Elan), returns from the association’s members alone in 2009, indicate an outstanding lease volume of N437 billion, representing a growth rate of 25 per cent over the previous year’s figure approximated at N350 billion.
A further breakdown of the statistics shows 17 per cent drop in growth rate of the lease volume considering the 42 per cent growth in 2008 as against 25 per cent in 2009.
The research also revealed that the industry has maintained an impressive steady growth within the past five years rising from N115 billion in 2005, N118 billion in 2006 and N189 billion in 2006, hitting record breaking figures of N350 billion in 2008 and N437 billion in 2009.
Sectoral analysis of the study shows that oil and gas and manufacturing sectors continued their dominance on the leasing chart accounting for more than 60 per cent of the total transaction in the industry followed closely by transportation which has been recording remarkable results in recent years due to the rising demand for new cars, commercial buses and trucks mainly for haulage.
According to industry sources, the achievements recorded in the leasing industry within the period in spite of the fluctuations in the economy is based on the fact that leasing is creative finance option that broadens product range in the financial services industry without necessarily locking the huge sums of capital that have competing needs.
The investigation revealed that most of the items leased include medium, light and heavy duty vehicles of all sorts, production machinery, power generating sets, house hold utilities, Industrial and office equipment.
Throwing more light on the activities of the association, the report stated that the association recorded tremendous success in its membership drive as the membership rose to 520 from 350 as at last year, cutting across corporate, associate and individual membership categories.
In his assessment of the above developments, Mr. Collins David-Ikpe, chairman of the association, noted that, though the 25 per cent growth rate recorded by the leasing industry last year was the least within the last five years, it was reasonable considering the debilitating effects of the current global economic meltdown and the current reforms in the country’s banking sector.
David-Ikpe highlighted a number of factors which accounted for the step down in the growth rate recorded last year to include the liquidity crunch which incapacitated both the banking and non-banking leasing companies’ capacity to lease out equipment.
He said the appreciable growth in the association’s membership and activities is an indication of the increasing penetration of leasing business in Nigeria attributing it to unique products and services offered by leasing companies.
David- Ikpe assured that the association would continue to evolve proactive strategies aimed at stimulating and sustaining a viable leasing culture in Nigeria and called for the support of all stakeholders for the association’s efforts towards supporting the socio-economic development of Nigeria.
