The current wide range of reforms in the finance company’s sub-sector of Nigeria by the Central Bank of Nigeria (CBN) will include regulation of equipment leasing activities .
Mr. Kehinde Lawanson , chairman of Equipment Leasing Association of Nigeria (Elan) who stated this at the 18th Annual General Meeting (AGM) of the association in Lagos, explained that this followed the rising profile of leasing as a veritable financing option.
According to Lawanson, under the financial system strategy (FSS 2020), championed by CBN , leasing is being promoted as a major instrument of growth especially to the micro, Small and Medium Enterprises (MSME)
He noted that these initiatives would have considerable impact on the leasing industry as Elan has been working with the apex bank to ensure that her developmental objectives for the industry are realized.
Lawanson said that the future of leasing industry remains bright despite the daunting challenges facing it, adding that the association would continue to be unwavering in the quest to ensure a stable and robust industry.
In his words: ” We shall intensify engagement with government and other relevant bodies to ensure that the necessary leasing infrastructure including” appropriate legal framework and favorable tax incentives are put in place.
On the scorecard of the present board, Lawanson stated that Elan’s total membership was increased from 237 to 248 in 2012 with eleven corporate organizations joining the association as against the previous year.
He said that Elan has continued to strengthen its capacity building initiatives , especially its advisory service to ensure that members are well informed about measures and strategies to protect themselves and grow their businesses.
According to him: “ We shall intensify efforts ensuring that appropriate funding mechanism is put in place for our members to fund their lease” transactions
He enumerated some of the challenges confronting the development of the industry including inadequate leasing infrastructure as fragmented legal framework , unfavorable tax regime and inadequate funding mechanism.
BusinessWorld intelligence recalls that in spite of the tough operating environment, outstanding lease volume for the year ended 31th December, 2012 stood at N671 billion, depicting a growth rate of 7.8 per cent from N628 billion recorded in 2011.
The oil/gas sector maintained its dominance with 32.4 per cent of the total transaction, follows closely of the total transactions, followed closely by an impressive performance from transportation sector with 30.4 per cent
Though finance leasing transactions continued to denominate the leasing market for years now , during the review period , a gradual shift to operating leasing was witnessed.
In fact, many lessors now tilt towards service-oriented leases including fleet management of their corporate clients in response to market dictates.
Powered by WPeMatico