The Potential of Leasing to Revamp the Economy
Amidst the economic challenges facing the country, there is a growing consensus among stakeholders that the government should consider leasing as a cost-saving option. The recent controversial procurement of 360 Sport Utility Vehicles for members of the National Assembly sparked public outcry, with many criticising the decision to import the vehicles instead of considering local alternatives. In light of this, leasing experts are advocating for the adoption of leasing as a means to reduce the significant capital expenses associated with political officeholders.
One of the key benefits of embracing leasing is the potential to free up more funds for capital projects, which is crucial for economic development. Former Principal Manager at Leasing Company of Nigeria, Soji Oloyede, highlighted the economic impact of leasing, emphasizing its potential to stimulate business growth and reduce corruption. This sentiment was echoed by the Group Managing Director/CEO of C&I Leasing Plc, Lenin Ugoji, who emphasized the role of leasing in supporting the government’s infrastructure development efforts.
The Equipment Leasing Association of Nigeria recently held a conference focused on the potential of leasing to drive economic growth. During the conference, the Chairperson of the Board of Directors of ELAN, Mrs Elizabeth Ehigiamusoe, highlighted the importance of leasing as a financing alternative that facilitates access to equipment required for productive purposes, contributing to capital formation in the economy.
Ehigiamusoe also underscored the significant contribution of leasing to capital formation in the economy, particularly in supporting Micro Small and Medium Scale Enterprises (MSMEs). The industry’s robust growth in recent years further underscores the potential of leasing as a driving force for economic development.
Furthermore, speakers at the conference emphasized the need for the government to leverage equipment leasing to achieve efficiency and cost savings. The potential for lease investments in critical sectors such as agriculture, health, and mining was also highlighted, with a call for targeted measures to stimulate greater contribution from the leasing industry.
In considering the government’s economic agenda, speakers at the conference underscored the pivotal role of leasing in supporting manufacturing companies and SMEs. It was emphasized that the alignment of the government’s economic objectives with the growth of the leasing industry would be mutually beneficial for economic development.
To address the funding challenges faced by the leasing industry, stakeholders called for the creation of an intervention fund and access to pension funds. The alignment of government policies with the needs of the leasing industry was identified as a critical factor for driving economic growth through leasing.
In conclusion, the potential of leasing to revamp the economy is evident. With the right policies and support from the government, leasing has the capacity to drive economic growth, support SMEs, and contribute to capital formation. By embracing leasing as a viable financing option, the government can unlock opportunities for economic development and address the challenges posed by the current economic climate.
