Nigeria’s leasing industry recorded a strong expansion in 2025, with total outstanding lease volume rising by 26.5 per cent to N6.54 trillion.

This comes as businesses continue to adopt asset-backed financing amid tight credit conditions, elevated borrowing costs and persistent foreign exchange (FX) pressures.

Fresh data from the Equipment Leasing Association of Nigeria (ELAN) at the weekend underscored a sustained shift by firms seeking flexible funding options to acquire critical assets without heavy upfront capital commitments.

New lease transactions climbed significantly, increasing by 40.27 per cent to N1.37 trillion in 2025 from N973.3 billion in the previous year, highlighting the growing acceptance of leasing as a viable alternative to conventional bank financing.

The Chairman of ELAN, Ehigiamusoe Elizabeth Ngozi, said the performance reflected the resilience of the sector and its expanding role in supporting economic activities across industries.

“The performance highlights the increasing role of leasing in bridging financing gaps and enabling businesses to access essential assets without heavy upfront capital outlay,” she said.

Industry stakeholders said leasing has contributed about N30.08 trillion to Nigeria’s economy over the past decade, reinforcing its position as a critical driver of enterprise growth, particularly for firms grappling with limited access to credit.

Sectoral analysis showed that oil and gas maintained its dominance in 2025, accounting for 50.3. per cent of new leases valued at N689 billion. Transportation and logistics followed at 27 per cent at N369.8 billion, while telecommunications accounted for 8.07 per cent.

Manufacturing contributed seven per cent, with other sectors, including healthcare and education, making up 7.3 per cent.

The Chairman of ELAN attributed the industry’s growth to prevailing macroeconomic conditions, particularly the surge in asset prices triggered by exchange rate volatility.