Report: Opportunity Abounds for Sustainable Growth in Leasing Industry in 2023
The Equipment Leasing Association of Nigeria (ELAN) has projected that the leasing industry in Nigeria would abound in 2023 that would enable the leasing industry to continue on the path of recovery in 2023. Obviously, opportunities abound for leasing.
It, however, noted that this could “only come into full fruition with the proactiveness of lessors and goodwill from other stakeholders for a more sustainable leasing industry.”
This projection is contained on a report titled “2023 Outlook: Continued Recovery, Amidst Heightened Turbulence,” that was released yesterday by the ELAN.
It said: “In 2023, the leasing industry is expected to remain resilient in its recovery and sustain its growth trajectory, in the face of economic challenges. However, the extent of disruption in the macro environment, especially the outcome of the general elections, will invariably shape the performance of the leasing industry. Essentially, many of the industry-specific conditions in 2022, are expected to remain largely unchanged”
The report further projected that the Nigerian Leasing landscape in 2023 would be characterized by expected growth in new business volume, continued adoption of strategic objective and approach, continued absence of appropriate funding mechanism and full implementation of the Equipment Leasing Act 2015.
Other features of the leasing industry during the year, according to ELAN, would include expansion of new entrants into the market, the rising cost will continue to impact volume and service delivery and increasing business opportunities.
The ELAN said that the expected growth in new business volume would be driven by the current “growing appetite for asset finance by consumers in the face of tight cash squeeze and rising cost of assets” while continued adoption of strategic objective and approach would enable “lessors to withstand shocks brought about by the pandemic and prevailing economic conditions, ensuring business survival and continuity.
“Lessors will still be on their guard, adopting effective cost control mechanism, improving processes and customer relations e.t.c., to navigate through the challenges to stay afloat and improve the bottom-line.”
It added that continued absence of appropriate funding mechanism would remain an albatross for the leasing industry. “Money is the raw material for leasing, its adequacy, availability and cost, is key to the success of the industry.
“This issue is becoming more challenging, with the prevailing economic conditions that have further tightened liquidity in the system. ELAN, continues to engage financiers locally and internationally for an appropriate funding mechanism for the industry.”
The association also hoped that full implementation of the Equipment Leasing Act 2015, especially the inauguration of the Equipment Leasing Registration Authority (ELRA), “will be a game changer. The inauguration and commencement of operation of ELRA, is expected to take place this year with the sustained pursuit by ELAN, supported by other stakeholders.”
It said that the ELRA, “will provide the integral booster for the faster development of the leasing industry as it gives effects to the full implementation of the Equipment Leasing Act 2015.