LEASE FINANCING IN NIGERIA: A TWO DECADE ANALYSIS OF GROWTH, RESILIENCE AND ECONOMIC IMPACT

Abstract

Despite steady growth, the performance of Nigeria’s leasing industry under conditions of economic volatility remains insufficiently studied. This research investigates the evolution of the Nigerian leasing industry between 2005 and 2024, focusing on its relationship with overall economic growth and resilience during macroeconomic shocks. The study aims to determine whether leasing has maintained, accelerated, or structurally shifted its trajectory amidst Nigeria’s fluctuating economic conditions. Relying exclusively on secondary data, the study draws from reputable sources including the Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS), Equipment Leasing Association of Nigeria (ELAN), and World Bank Development Indicators. The population comprises all recorded lease transactions nationwide, with the sample consisting of aggregated annual leasing volumes and macroeconomic indicators across the 20 year period. Data were collected through archival methods and analyzed using descriptive statistics and trend analysis to evaluate leasing volumes, annual and marginal growth rates and GDP performance. The results reveal that leasing volumes grew from ₦115 million in 2005 to approximately ₦2.8 billion in 2024, expanding even during GDP contractions of –1.6% in 2016 and –1.9% in 2020. Early years were marked by volatility, while post-2019 trends reflect increasing stability and institutional maturity. The analysis identifies a transition from a volatile build-out phase (2005-2018) to a more stable scale phase (2019-2024), highlighting leasing’s countercyclical and complementary role in Nigeria’s financial system. The study concludes that leasing is a resilient but underutilized financing tool. The study recommends among others strengthening repossession rights and credit infrastructure to deepen market trust and support sustainable industry growth.