We’ve financed over 230 projects across sectors – Ehi-Omoike, MD, LECON

Equipment leasing has become an increasingly adopted strategy and an important source of financing equipment acquisition by businesses. The global annual growth level and volume of leasing reflect investors’ preference to lease rather than purchase it. Hence, the popularity of the slogan, ‘lease it, don’t buy it.’ Figures published by the Equipment Leasing Association of Nigeria (ELAN) indicate that global equipment leasing volume increased by 76 percent in the past decade. New business lease volume stood at $1.55 trillion in 2023 and at an estimated $1.86 trillion in 2024. In Nigeria, outstanding lease volume stood at N4.19 trillion in 2023 against N3.25 trillion recorded in 2022, representing a 28.7 percentage growth. While many companies are signing up to leasing for the first time in recent times, a number of others, which had utilised leasing facilities, have done more of it. This is because it facilitates easy and convenient access to procuring equipment needed for productive purposes in addition to other advantages it presents over other forms of equipment financing.

BusinessDay recently spoke with Ebehiriere Ehi-Omoike, managing director of LECON Finance Company Limited, on how the company is driving business productivity and economic growth through equipment leasing.

“In education, we have enabled schools to acquire learning-enhancing equipment, while in healthcare, we have supported providers in modernising their infrastructure for ensuring better delivery of services.”

LECON Finance Company has had a long and impactful journey. Can you tell us a bit about the organisation and how it has evolved over the years?

LECON Finance Company Limited has a rich legacy. It began in 1977 as a result of Nigeria’s indigenisation policy. At the time, the Commonwealth Development Corporation (CDC) was acquired and became a wholly owned subsidiary of the Nigerian Industrial Development Bank (NIDB), which is now known as the Bank of Industry (BOI).

In 1989, the company was renamed Leasing Company of Nigeria (LECON) to better reflect its core focus. Then, in 2022, we rebranded to LECON Finance Company Limited—a strategic move to broaden the scope of our services beyond traditional leasing.

What sectors has LECON made the most impact in over the years?

Over the past three decades, we have financed more than 230 projects across a variety of sectors. For instance, we have helped smallholder farmers access mechanised equipment, which has transformed agricultural productivity. We have also worked with groups like the Tomato Crate Owners Association to acquire modern storage assets, significantly reducing post-harvest losses.

In education, we have enabled schools to acquire learning-enhancing equipment, while in healthcare, we have supported providers in modernising their infrastructure for ensuring better delivery of services.

Our impact is also quite visible in manufacturing, where we have funded machinery and production lines that enhance competitiveness. We have also been involved in the transport and logistics sector by supporting fleet expansion to improve supply chain efficiency and last-mile delivery.

How does LECON maintain standards in leasing operations and governance?

At LECON, we pride ourselves on upholding best practices in risk management, contract design, and sector targeting. Our ‘A–‘ credit rating from Agusto & Co reflects strong institutional governance and financial health.

Being backed by the Bank of Industry (BOI) and benefiting from technical assistance from global partners like the World Bank, we also provide leverage for LECON’s prime position to deepen and derive value for Nigeria’s leasing industry.

What sectors are you currently prioritising in your lease financing offerings?

We are focused on the critical sectors that drive inclusive and sustainable growth. These include food and agro-processing, mining and solid minerals, renewable energy and climate-related sectors, healthcare and pharmaceuticals, telecoms/ICT, and gender-focused enterprises. Through our tailored lease solutions, we aim to enable businesses in these sectors to scale and compete more effectively, contributing meaningfully to Nigeria’s economic development.

Can you walk us through the key classes of equipment leasing contracts and what they mean for businesses?

Certainly. There are two major categories of equipment leasing contracts—finance leases and operating leases—each with distinct benefits to the lessee.

In an operating lease, the lessor retains ownership of the equipment, while the lessee gets exclusive use for a specified term. It’s ideal for businesses that need equipment temporarily or want to avoid the responsibilities of ownership.

On the other hand, a finance lease gives the lessee control of the asset for most of its useful life, even though legal ownership remains with the lessor. This type of lease typically includes an option for the lessee to purchase the equipment at the end of the lease term. If that option is exercised, ownership is transferred to the lessee.

Are there other types of lease structures beyond these two?

Yes, there are several hybrid or variant lease structures, such as leveraged leases, synthetic leases, and sale and lease-back arrangements. These options allow for greater flexibility depending on the lessee’s financing needs and tax considerations.

What would you say are the financial advantages of leasing for businesses?

Leasing offers several advantages. Firstly, it allows a business to use equipment without the high upfront cost of outright purchase. This is particularly beneficial for companies that need to preserve working capital for operational expenses. It also helps businesses to avoid taking on debt to acquire assets, thereby improving financial ratios on their balance sheet. By leasing instead of buying, companies can also enhance their return on assets, as they’re not heavily invested in fixed equipment.

LECON Finance Company has had a long and impactful journey. Can you tell us a bit about its origin and how it evolved over the years?

Absolutely. LECON Finance Company Limited has a rich legacy. It began in 1977 as a result of Nigeria’s indigenisation policy. At the time, the Commonwealth Development Corporation (CDC) was acquired and became a wholly owned subsidiary of the Nigerian Industrial Development Bank (NIDB), which is now known as the Bank of Industry (BOI). In 1989, the company was renamed Leasing Company of Nigeria (LECON) to better reflect its core focus. Then, in 2022, we rebranded to LECON Finance Company Limited—a strategic move to broaden the scope of our services beyond traditional leasing.

Equipment leasing seems to be gaining momentum both globally and locally. What’s driving this trend?

Globally, businesses are prioritising access over ownership, and leasing has proven to be a cost-effective way to acquire equipment without draining capital. In 2023, global equipment leasing volume reached $1.55 trillion and is expected to hit $1.86 trillion in 2024. Here in Nigeria, we saw a 28.7 percent increase last year, with lease volume hitting N4.19 trillion. Companies are realising that leasing frees up cash, offers tax benefits, and helps them stay competitive with modern equipment.

How is LECON responding to this rising demand for lease financing?

LECON is Nigeria’s pioneer leasing company. Over the years, we’ve evolved and repositioned ourselves. In 2022, we rebranded as LECON Finance Company Limited to reflect a broader, development-focused mandate. Backed by the Bank of Industry and working with partners like the World Bank, we offer leasing solutions tailored to the realities of Nigerian businesses—especially those operating in high-impact sectors.

Which sectors are you prioritising, and why?

Our focus is on six key sectors with strong potential to drive inclusive economic growth. One is food & agro-processing. This sector supports food security, job creation, and exports. We lease equipment for post-harvest processing, storage, and distribution—everything from chillers and trucks to milling machines and juice extractors.

Next is mining & solid minerals. We finance extraction and processing equipment, helping miners—especially artisanal and small-scale operators—access the machinery they need to scale sustainably.

We also focus on renewable energy & climate tech. Leasing enables companies to adopt solar solutions, inverters, battery storage systems, and even electric or CNG-powered vehicles, helping address Nigeria’s power deficit.

We are also in healthcare & pharmaceuticals. We lease diagnostic and pharmaceutical equipment, including MRI machines, dialysis units, delivery vehicles, and ICT tools. This is essential for modernising healthcare infrastructure.

Another one is the telecoms & ICT sector. Digital inclusion is key to economic growth. We provide lease finance for ICT systems, telecom infrastructure, and power solutions.

We also focus on gender-inclusive finance. We have special offerings for women-owned or led businesses in any of these sectors. Inclusion is central to our development strategy.

What makes leasing a better option than traditional loans for businesses?

First, leasing requires minimal upfront cash, which helps businesses conserve working capital. You also avoid the burden of long-term bank debt, and lease payments are tax-deductible. With leasing, you’re not stuck with obsolete equipment—you can upgrade at the end of the lease term. It’s flexible, smart, and efficient.

How exactly is LECON making leasing more accessible?

We have simplified the process. Our model includes flexible payment terms with moratoriums when needed, simplified documentation, especially for SMEs, comprehensive asset insurance and tracking, as well as advisory support, including project and risk assessment.

We tailor our lease structures to match the cash flow cycles of businesses. Whether you’re a farmer, manufacturer, healthcare provider, or tech firm, we make sure the leasing terms work for you—not against you.

How many businesses have you supported so far?

Over the past three decades, we’ve financed more than 230 projects. That includes farmers acquiring tractors, agro cooperatives getting modern storage units, schools upgrading ICT infrastructure, and hospitals installing diagnostic tools. We’ve also helped logistics companies expand their fleets and manufacturers modernise production lines. These aren’t just transactions—they’re development milestones.

You mentioned gender-focused finance. Can you tell us more?

Women-led businesses often face additional barriers to accessing capital. We are committed to leveling the playing field. Our offerings provide female entrepreneurs with the tools they need—whether in agro-processing, healthcare, or ICT. Supporting women is not just a social goal—it’s smart economics.

Finally, what is your advice to business owners considering leasing?

If you’re looking to scale operations, modernise equipment, or manage cash flow more efficiently, leasing is the smart way forward. And if you want a partner that understands your sector and tailors solutions to your needs, LECON is ready.