Ownership Trap: Why Entrepreneurs Should Lease, Not Own

By Dozie Okpalaobieri (Published in Thisday Newspapers)

For countless Nigerian entrepreneurs, a single, formidable obstacle blocks the path to growth: the prohibitive cost of essential assets. The dream of a manufacturer acquiring new machinery, a logistics firm expanding its fleet of trucks, or a clinic upgrading to modern diagnostic equipment often remains just that—a dream. The burden of outright ownership, with its massive capital outlay, can stifle a promising Micro, Small, and Medium Enterprise (MSME) before it even has a chance to scale.

Enter LECON Finance Company Limited, a revitalised subsidiary of the Bank of Industry (BOI). LECON is systematically dismantling this barrier, offering a smarter path to growth where access trumps ownership. By allowing businesses to lease the critical assets they need, LECON keeps cash flow healthy, minimizes risk, and provides the agility required to thrive in a competitive market.

This article provides a practical insight into how LECON’s Fast, Accessible, and Effective leasing model is reshaping the landscape for Nigerian enterprises and unlocking their true potential.

FAST: Accelerating Your Growth

In business, speed is a competitive advantage. LECON has engineered its processes to eliminate the bureaucratic delays that plague traditional financing. With a streamlined application and approval workflow, businesses can get a definitive answer on their lease application within three to five weeks. This rapid turnaround provides the certainty needed for decisive planning and swift execution, allowing entrepreneurs to seize market opportunities without delay.

ACCESSIBLE: Lowering the Barrier to Entry

LECON’s model is built on financial inclusion. It makes high-value assets attainable for MSMEs by removing the need for massive upfront capital and rigid collateral demands.

●Preserving Working Capital: Instead of draining millions on a single purchase, businesses can make a manageable down payment (typically 15-25%) and keep their cash free for vital operations like salaries, inventory, and marketing. A small rice milling company in Kebbi State, for example, was able to deploy ₦50 million worth of processing machines without the crippling upfront cost, focusing its capital on operations while the machines paid for themselves.

• Flexible Requirements: Unlike conventional loans that demand significant tangible collateral, LECON’s primary security is the asset itself. Repayments are structured to align with the cash flow generated by the business, making it a self-sustaining investment.

• Building Business Credit: Successfully managing a lease with LECON creates a strong credit history. This disciplined financial record often positions businesses to qualify for larger LECON loans and other financing opportunities in the future.

EFFECTIVE: Driving Smart and Sustainable Operations

A lease from LECON is more than just financing; it’s a strategic partnership designed for operational excellence and risk mitigation.

• Reduced Operational Risk: Ownership comes with headaches of maintenance, depreciation, and obsolescence. Leasing transfers these burdens to LECON.

• Future-Proofing Your Business: Technology evolves rapidly. Leasing ensures that businesses are not stuck with outdated equipment. A tech startup in Lagos, for instance, uses LECON’s operating lease to regularly upgrade its servers and workstations. This keeps them at the cutting edge of their industry without the recurring financial shock of frequent technology overhauls.

•Focus on Core Business: With LECON handling asset acquisition, management, and end-of-lease logistics, entrepreneurs can dedicate their time and energy to what they do best: running and growing their business.

Success Story

A newly established health center needed state-of-the-art X-ray and ultrasound machines valued at N200 million but lacked the capital for an outright purchase. Through LECON, they secured the equipment on a 4-year lease-to-own agreement. This strategic move allowed them to launch with top-tier services. Within the first year, their patient inflow increased by 40 percent, boosting revenue and enabling them to meet their lease payments comfortably. The lease was the catalyst that transformed their business from a concept into a thriving reality.

In real terms, LECON’s leasing model at a glance means businesses can lease critical equipment with as little as 15–25 percent down payment, while LECON funds the remaining 75–85 percent. Approvals are fast between three to five weeks whilst repayment structures are built around the actual cash flow generated by the asset with a 3-6 months moratorium on the principal payment

It’s not just financing; it’s strategy. A smart lease turns an idle idea into a productive enterprise.

The Future is Asset-Light

LECON’s impact is set to grow as it continues to innovate and expand its reach. For Nigeria’s rising generation of entrepreneurs, asset leasing is shifting from a niche alternative to an essential strategy. To further empower businesses, LECON is:

•Digitizing its processes for even faster applications and approvals.

•Expanding into green leasing to help businesses acquire solar panels and energy-efficient equipment.

•Collaborating with Original Equipment Manufacturers (OEMs) to secure better asset pricing and maintenance support for its clients.

•Offering tailored leasing products for women and youth-led enterprises, in line with BOI’s special intervention programs.

LECON is not merely a finance company; it is a provider of possibility. For thousands of Nigerian entrepreneurs, it represents the critical difference between dreaming and doing. By unlocking essential assets without the crushing weight of ownership, LECON is empowering businesses to start, scale smartly, and build a more prosperous future.

Okpalaobieri is a Nigerian economist, international development attorney, and policy advisor with deep expertise in energy, infrastructure, and economic governance.