Nigeria’s leasing industry recorded a strong growth of 23.2 per cent in 2024, pushing the value of outstanding leases to N5.17 trillion, up from N4.19 trillion in 2023. This was revealed in a statement released on Sunday, May 12, 2025, by the Equipment Leasing Association of Nigeria (ELAN). The association noted that the sector continued to show resilience despite the tough economic situation in the country and global financial headwinds.
According to ELAN, new leases rose to N973.3 billion in 2024, showing that more businesses and individuals relied on leasing to fund their operations. Over the last decade, the leasing sector has contributed about N24.6 trillion to the Nigerian economy, underlining its importance in the country’s development.
A breakdown of the sectoral distribution of leases showed that the oil and gas industry accounted for the highest share of leases with N1.38 trillion, representing 26 per cent of the total. The transportation and logistics sector followed closely with N1.18 trillion or 21 per cent. Manufacturing recorded N734.3 billion, which was 13 per cent of total leases.
Telecommunications took up N462.2 billion or 9 per cent, agriculture had N378.6 billion or 8.5 per cent, while the government sector accounted for N345.3 billion, about 7.5 per cent. Other sectors like education and healthcare contributed a combined N686 billion or 15 per cent.
The association said the growth in leasing was driven by multiple factors, including the increasing cost of assets caused by the removal of petrol subsidies and the floating of the naira. With these changes, it became more expensive to purchase equipment outright, so businesses turned to leasing options. ELAN also mentioned the entrance of new players into the market and increased awareness about the benefits of leasing as key reasons behind the sector’s growth.
Finance lease remained the most popular type of transaction, making up 52 per cent of all leasing deals. However, operating leases gained popularity, especially among corporate clients who preferred to outsource services like transportation and logistics. Because of this, many lessors are shifting from finance leases to operating leases as a way of managing risks while also meeting clients’ demands.
Vehicle leasing stood out as the most common form of leasing, accounting for 53 per cent of the leased assets. These included staff buses, haulage trucks, and commercial vehicles used by companies for their daily operations.
Looking ahead, ELAN believes the industry will continue to grow, especially as the government increases its investment in infrastructure projects in sectors such as transportation, power, healthcare, construction, and agriculture. These areas are expected to drive demand for leasing services as businesses seek affordable ways to access equipment and vehicles.
In addition, the recent commencement of operations by the Equipment Leasing Registration Authority (ELRA) is expected to support industry regulation and development. ELRA will be responsible for fully implementing the Equipment Leasing Act of 2015, which is designed to provide structure and oversight for the sector.
With a contribution of over N16.3 trillion to Nigeria’s economy over the past 10 years and growing relevance across industries, the leasing sector is becoming a vital part of the country’s financial system. ELAN remains optimistic about the future of leasing in Nigeria and believes it can play an even bigger role in supporting national development.
