Leasing in Nigeria: How LECON is Powering Business Growth through Asset Acquisition

The Business Financing Dilemma

By: Oluchi Chibuzor

In today’s Nigeria, businesses must constantly adapt to eOluchi Chibuzor

The Business-Financing Dilemma

In today’s Nigeria, businesses must constantly adapt to economic uncertainty, high inflation, and fluctuating interest rates. For many, the greatest hurdle is not vision or market opportunity but access to productive assets—the tools that drive growth.

Traditional asset acquisition, whether through outright purchase or costly bank loans, is increasingly out of reach. With lending rates ranging between 25 per cent and 35 per cent, small and medium enterprises (SMEs) in particular are locked out of conventional financing.

This is why leasing has emerged as a game-changer. Rather than straining balance sheets with large upfront capital expenditure (CapEx), companies can now shift toward operational expenditure (OpEx), gaining the assets they need while conserving liquidity.

As the Equipment Leasing Association of Nigeria (ELAN) notes, leasing has contributed an estimated N20.4 trillion to Nigeria’s economy over the last decade. In 2023 alone, lease volumes rose to N4.19 trillion, representing a nearly 29 per cent growth from the previous year. Globally, the industry is valued at $1.55 trillion, underscoring a universal shift: it’s no longer about owning everything—it’s about accessing what matters, when it matters.

Understanding Leasing – Beyond Ownership

At its core, leasing is a contractual agreement where a lessor provides an asset to a lessee for use over an agreed period, in exchange for periodic rental payments. Unlike traditional loans, leasing doesn’t burden companies with debt; instead, it transforms high upfront costs into predictable, manageable installments.

There are two main types:

• Finance Lease – often used by companies that intend to acquire ownership eventually. Rentals are structured to cover the full value of the asset, and the lessee assumes maintenance responsibilities. At the end of the term, ownership typically transfers to the lessee.

• Operating Lease – best suited for short-to-medium-term needs. Ownership remains with the lessor, who also manages maintenance, while the lessee enjoys full use of the asset without long-term obligations. For businesses, both options deliver the same core advantages:

1. Conservation of working capital
2. Flexible payment structures
3. Tax efficiency
4. Operational agility and easier technology upgrades

For SMEs and startups, these benefits can mean the difference between stagnation and scaling.

Leasing and the Nigerian Economy

The significance of leasing goes far beyond individual businesses. By unlocking access to productive assets, the sector is directly supporting national output, job creation, and industrial capacity.

Agriculture cooperatives use leased storage facilities to reduce post-harvest losses. Manufacturers expand production lines without draining cash reserves. Hospitals acquire diagnostic equipment to improve service delivery. Logistics operators lease fleets to strengthen supply chains.

Every transaction fuels growth, strengthens the tax base, and supports Nigeria’s push for diversification away from oil dependence. In fact, international comparisons show that countries with thriving leasing sectors achieve faster capital formation and stronger enterprise resilience.

The LECON Advantage

At the forefront of Nigeria’s leasing revolution is LECON Finance Company Limited. Established in 1977 under the indigenization policy, LECON evolved from the Commonwealth Development Corporation (CDC) into Nigeria’s premier leasing institution. It became the Leasing Company of Nigeria (LECON) in 1989, and in 2022, rebranded as LECON Finance Company Limited to reflect a broader mandate.

Today, as a subsidiary of the Bank of Industry (BOI), LECON combines decades of experience with developmental financing credibility. It is registered by the Central Bank of Nigeria (CBN) as a finance company and is a proud member of ELAN.

LECON stands out not just as a financier, but as a strategic partner to businesses. Its solutions are tailored to client realities, structured around cash-flow cycles, and supported by robust risk assessment frameworks.

The company’s sectoral priorities align with Nigeria’s growth agenda:

• Mining & Solid Minerals
• Food, Beverage & Agro-Processing
• Climate & Renewable Energy
• Healthcare & Pharmaceuticals
• Telecommunications & ICT
• Gender-Focused Enterprises

By concentrating on these areas, LECON ensures that leasing contributes to industrial development, sustainability, and inclusive economic growth.

Why Businesses Choose LECON

LECON’s reputation is built on four pillars:

1. Sector expertise – decades of financing experience across agriculture, healthcare, manufacturing, and logistics.
2. Tailored solutions – lease agreements structured around each client’s operations and repayment capacity.
3. Risk mitigation – strong due diligence to protect both clients and asset performance.
4. BOI-backed credibility – a development finance heritage that inspires trust and long-term stability.

These strengths have enabled LECON to finance over 230 projects across Nigeria—from tractors for smallholder farmers to fleets for logistics providers and modern equipment for hospitals and schools.

Re-Imagining Growth through Leasing

For many Nigerian businesses, the challenge of acquiring essential tools—from delivery vans and medical equipment to industrial machines—remains a formidable barrier. LECON is breaking down these barriers by making asset access seamless, flexible, and sustainable.

Leasing has replaced the rigid “own-to-operate” model with a more agile “use-to-grow” approach. With predictable payments and reduced capital risk, enterprises can protect liquidity while investing in innovation and expansion.

Whether it’s a cassava processor in Ogun, a fashion brand in Aba, or a mining operation in Kogi, LECON provides a pathway to prosperity.

The Way Forward

The future of leasing in Nigeria is not just promising—it is transformative. As industries embrace smarter capital management and banks tighten credit conditions, leasing is poised to become the mainstream financing model.

For LECON, the mission is clear: to remain the partner of choice for businesses seeking to grow without draining capital. With its proven track record, BOI heritage, and client-first ethos, LECON is well positioned to shape Nigeria’s economic future.

As the slogan goes, “Lease it, don’t buy it.” For Nigerian businesses determined to thrive amid uncertainty, leasing—especially with a trusted partner like LECON—may just be the smartest investment decision they make.