According to the Equipment Leasing Association of Nigeria (ELAN), the Nigerian leasing market is expected to flourish in 2023, allowing it to continue its upward trend. Obviously, there are several lease opportunities.
It was emphasized that a leasing business could only be more stable if “lessors took initiative and other stakeholders were good-willed.”
This forecast may be found in a paper by ELAN titled “2023 Outlook: Continued Recovery, Amidst Heightened Turbulence,” which was made public yesterday.
“In 2023, the leasing industry is likely to maintain its growth trajectory and be resilient in its recovery, despite economic headwinds,” it stated. The performance of the leasing industry will, however, invariably be influenced by the degree of disruption in the macro environment, particularly the results of the general elections. In general, many of the industry-specific conditions that are expected to be in place in 2022 are expected to stay the same.
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The report also predicted that in 2023, the Nigerian leasing market would be characterized by an expected increase in new business volume, continued adoption of strategic objectives and approaches, the continued absence of an adequate funding mechanism, and full implementation of the Equipment Leasing Act 2015.
According to ELAN, the leasing industry will also experience the expansion of new players into the market, the cost of doing business will continue to have an impact on volume and service delivery, and there will be more opportunities for business.
According to the ELAN, the current “growing appetite for asset finance by consumers in the face of tight cash flow and rising costs of assets” would be the main factor driving the expected growth in new business volume, while continued adoption of strategic objectives and approaches would enable “lessors to withstand shocks brought on by the pandemic and prevailing economic conditions, ensuring business survival and continuity.”
“Lessors will still be on the lookout, implementing efficient cost control mechanisms, strengthening processes and customer relations, et cetera, to navigate through the hurdles to stay afloat and improve the bottom line.”
It further stated that the leasing business would continue to be burdened by the persistent lack of suitable funding mechanisms. “Money is the essential component of leasing, and the affordability, accessibility, and availability of it are crucial to the sector’s performance.”
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With the current economic climate further tightening system liquidity, this problem is becoming more difficult. ELAN continues to work with local and international bankers to find a suitable funding source for the sector.
The group also hoped that the Equipment Leasing Act 2015 would be fully implemented and that it would “alter the game,” particularly with the creation of the Equipment Leasing Registration Authority (ELRA). The launch and operation of ELRA are likely to happen this year, thanks to ELAN’s hard work and the cooperation of other parties.
The Equipment Leasing Act of 2015 will be fully put into effect by the ELRA. According to the statement, this will give the leasing industry a big boost and help it grow faster.
