By Bosede Adegoke
Nigeria’s leasing industry has recorded a strong expansion in 2025, with total outstanding lase volume rising by 26.5 per eent to N26.54 trillion, as businesses increasingly adopted asset-backed financing amid tight credit conditions, elevated borrowing costs and persistent foreign exchange pressures.
Fresh data from the Equipment Leasing Association of Nigeria (ELAN) at the weekend showed that the industry grew from N5.16 trillion in 2024, underscoring a sustained shift by firms seeking flexible funding options to acquire critical assets without heavy upfront capital commitments.
New lease transactions also climbed significantly, increasing by 40.27 per cent to N1.37 trillion in 2025 from N973.3 billion in the previous year, highlighting growing acceptance of leasing as a viable alternative to conventional bank financing.
Committing on the development Chairman of ELAN, Mrs.Ehigiamusoe Elizabeth Ngozi, said the performance reflects the resilience of the sector and its expanding role in supporting economic activities across industries.
“The performance highlights the increasing role of leasing in bridging financing gaps and enabling businesses to access essential assets without heavy upfront capital outlay,” she said.
Industry stakeholders indicate that leasing has contributed about N30.08 trillion to Nigeria’s economy over the past decade, reinforcing its position as a critical driver of enterprise growth, particularly for firms grappling with limited access to credit.
From industry perspective, operators note that the growth signals a structural shift in corporate financing behavior, with more firms prioritizing asset utilisation over ownership in an uncertain macroeconomic environment.
Sectoral analysts showed that oil and gas maintained its dominance in 2025, according for 50.1 per cent of new leases valued a N689 billion. Transportation and logistics followed with 27 per cent at N369.8 billion, while telecommunications accounted for 8.07 per cent. Manufacturing contributed seven per cent, with other sectors, including healthcare and education, making up 7.3 per cent. Agriculture and government recorded marginal shares.
The Vice Chairman of ELAN, Tunde Netufo, attributed the industry’s growth to prevailing macroeconomic conditions, particularly the surge in asset prices triggered by exchange rate volatility.
“The increase in asset prices, especially after the naira float, has made leasing more attractive to businesses seeking efficiency and flexibility in financing,” he said.
A breakingdown of transaction types showed that finance leases led the market with 56 per cent, operating leases accounted for 44 per dent, reflecting evolving market dynamics and a growing preference for structured financing solutions. Vehicles remained the most financed assets, representing 53 per cent of total lease volume.
Further analysis revealed a highly concentrated market structure, with the top 20 players controlling about 90 per cent of total lease assets.
However, a significant number of smaller operators continue to focus on low-value transactions, signaling sustained support for Micro, Small and Medium Enterprises (MSMEs).
Despite the implementation of IFRS 16, which limits off-balance-sheet financing stakeholders maintained that leasing continues to retain its appeal due to its flevibility and ability to ease balance sheet pressures.
With persistent financing gaps and rising demand for asset acquisition across key sectors of the economy, industry players expressed optimism that the leasing market will sustain its growth trajectory, driven by innovation, digitalization and the development of tailored financing solutions suited to Nigeria’s evolving business landscape.
