The Equipment Leasing Association of Nigeria (ELAN) has revealed that the country’s leasing industry recorded significant growth in 2024, expanding by 23.2% to reach a transaction volume of ₦5.16 trillion. This marks a notable increase from the ₦4.19 trillion recorded in 2023.
According to ELAN, the cumulative contribution of the leasing sector to Nigeria’s economy over the past decade stands at an estimated ₦24.6 trillion, underscoring its critical role in asset financing and economic development.
The association attributed the sector’s performance in 2024 to heightened activity in key industries such as oil and gas, transport and logistics, and manufacturing.
Breakdown of sectoral leasing distribution shows:
- Oil and Gas: ₦1.3 trillion (26%)
- Transport and Logistics: ₦1.1 trillion (21%)
- Manufacturing: ₦734 billion (13%)
- Telecommunications: ₦462 billion (9%)
- Agriculture: ₦378 billion (8.5%)
- Government: ₦345 billion (7.5%)
- Others (including healthcare and education): ₦686 billion (15%)
ELAN explained that the growth was partly driven by the rising cost of acquiring assets, a consequence of major government reforms including the removal of petrol subsidies and the floating of the Naira. These reforms, while affecting asset prices, have also increased demand for lease-based financing.
Other contributing factors include:
- Increased industry participation and investment
- Innovation by leasing firms
- Rising public awareness of leasing benefits
- High cost of asset ownership prompting demand for alternative financing
The association highlighted that finance leases maintained dominance, accounting for 52% of total lease transactions. Operating leases also saw growing acceptance, especially among corporate clients who continue to show preference for asset-light models.
In response to market dynamics, some leasing firms have diversified operations by establishing service workshops, not only to maintain leased assets but also to generate revenue from third-party clients.
Vehicle leasing remains the largest asset class in the sector, constituting approximately 53% of total leased assets. The segment includes staff shuttle services, commercial buses, haulage trucks, and operational vehicles, which have all gained popularity amid rising transportation costs.
ELAN expressed optimism about the sector’s future, noting strong potential in closing the asset financing gap across industries. The association also projected sustained demand for leasing solutions, spurred by increased government investment in infrastructure, particularly in transport and logistics.
“The Nigerian leasing industry is poised to maintain its resilience given the wide financing gap, rising asset costs, and growing need for innovative financing models aligned with national development priorities,” ELAN stated.
Channelstv
