Why Nigerian Businesses Are Saying “Lease It, Don’t Buy It”
The global equipment leasing market is booming, reaching $1.86 trillion in 2024 (ELAN), with Nigeria’s lease volume growing 28.7% YoY to ₦4.19 trillion in 2023. LECON Finance Company Limited, a pioneer in Nigeria’s leasing sector since 1977, reveals how this financing model is transforming businesses across critical sectors.
Leasing by the Numbers
Global Market:
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2023: $1.55 trillion
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2024: $1.86 trillion (est.)
Nigeria’s Growth:
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2022: ₦3.25 trillion
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2023: ₦4.19 trillion (+28.7%)
LECON’s Sectoral Impact
Agriculture:
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Funded 230+ projects, including mechanized equipment for smallholder farmers
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Reduced post-harvest losses for tomato farmers by 40%
Healthcare:
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Modernized diagnostic equipment for hospitals
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Enabled 15+ clinics to upgrade facilities
Manufacturing:
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Financed production lines for 50+ factories
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Increased output capacity by 35% on average
Education:
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Leased digital learning tools to 20+ schools
Leasing 101: Finance vs. Operating Leases
| Type | Key Feature | Best For |
|---|---|---|
| Finance Lease | Lessee controls asset; option to buy | Long-term equipment needs |
| Operating Lease | Short-term use; lessor maintains ownership | Temporary or tech-upgrade needs |
Hybrid options like sale-leasebacks available for tax/flexibility benefits.
5 Reasons Nigerian Businesses Lease
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Preserve Capital: 80% of SMEs avoid large upfront costs (BOI)
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Tax Benefits: Lease payments often deductible as operating expenses
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Tech Access: Upgrade to latest equipment without ownership risk
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Balance Sheet: Improves debt-to-equity ratios
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Flexibility: Scale operations up/down as needed
LECON’s Competitive Edge
✔ “A-” Credit Rating from Agusto & Co
✔ BOI-backed with World Bank technical support
✔ Sector Focus: Agro-processing, renewable energy, gender-led biz
Quote:
“Leasing turns equipment costs into productive investments. Our farmers now harvest 3x faster with leased machinery.”
— Ebehiriere Ehi-Omoike, MD, LECON Finance
Who Should Consider Leasing?
• Startups needing equipment but lacking capital
• Growing businesses requiring tech upgrades
• Seasonal operators (e.g., agro-processors)
• Companies aiming to optimize tax positions
How to Get Started
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Assess Needs: Equipment type + usage period
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Choose Lessor: Compare terms (LECON, others)
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Negotiate Terms: 1-5 year contracts typical
