ELAN tasks government on equipment leasing option to boost nation’s economy
The Equipment Leasing Association of Nigeria (ELAN), has called on the Federal Government to utilise the equipment leasing option to achieve its developmental initiatives.
The Chairman, Board of Directors of the Association, Olutoyin Okeowo, made this call during the 16th National Lease Conference, held in Abeokuta, Ogun State, with the theme “Enhancing the Value Proposition of Equipment Leasing to Nigeria’s Economy.”
This year’s event, according to the Chairman, “is the biggest gathering of stakeholders in the Nigerian leasing industry, which provides a major platform for engagement on pertinent issues affecting the development of the leasing industry and economy, exploring opportunities as well as promoting business networking.
Furthermore, he stated that “this year’s event is essentially aimed to further propagate the ideals of leasing to national economic development and stimulate more valuable investments at this period where the economy is still struggling to get out of the woods.”
The Chairman, in his opening remarks commended the government on its economic initiatives to revitalise the economy, including the Economic Recovery and Growth Plan (ERGP). Although the economy is still fragile, he said the economic trajectory has been showing positive signs.
“Indeed, the attributes of leasing, which centre on easy and convenient access to capital equipment, can be brought to bear to support the government developmental initiatives and achieve inclusive growth. Essentially, Leasing can provide the integral support for the massive investment in infrastructure, mining, agriculture, among others that would stimulate production and employment.”
In Nigeria, he noted, “The impactful visibility of leasing is increasing, contributing to capital formation in the economy and creating wealth. In 2017, outstanding lease volume was estimated at N1.44trillion, up from N1.2 6trillion in 2016, representing a growth rate of 14.5 per cent. Assets worth over N8.98 trillion has been financed in the past 10 years, and can significantly improve with the right support for the industry.”
Some of the benefits of leasing to government, according to him, include enhanced
Infrastructure development, improved budget system and control as well as creating wealth for national economic development.
The Chairman, therefore called on government at all levels, to utilise leasing in their developmental agenda and pledge the willingness of the leasing industry to collaborate with them to achieve the set out economic initiatives.
Chairman of the occasion and former Deputy Governor, Central Bank of Nigeria, Tunde Lemo, called on the present administration to leverage the attributes of leasing, which centre on easy access to capital equipment to support investment in infrastructure, agriculture, manufacturing and solid minerals to stimulate production and employment.
Lemo urged the government to factor the leasing industry into its development agenda, pledging the support and commitment of the industry to achieving set out economic initiatives.