Stakeholders, operators hopeful over leasing law

The long awaited equipment leasing bill has been signed into law, to ensure that the business of equipment leasing is practiced in line with internationally acceptable standards.

The development was sequel to calls by the Equipment Leasing Association of Nigeria {ELAN} and other stakeholders

An elated Chairman, ELAN, Chuka Onwuchekwa stated that “this development will usher in a new dawn for the Leasing Industry as it would further facilitate the growth and sustainability of leasing business in Nigeria, creating wealth and overall economic development”.

The chairman highlighted some of the benefits to include, increase in local and foreign investment, improved buying power of small businesses to acquire productive assets, increased tax revenue, enhanced job creation and poverty reduction. Furthermore, it would enable ordinary Nigerians acquire assets to enhance quality of life.

He added that modern leasing which started in Nigeria in the 1960s, has over the years been supporting economic development of the country through the provision of the much needed capital assets for productive ventures. Today, the impact of leasing is becoming pronounced in all sectors of the economy, generating employment and enhancing tax revenues, recording over N4.8trillion transactions in the past 10 years (2005 to 2014).

The chairman revealed that globally, equipment leasing is now recognized and established as a creative financing alternative, used to meet the world’s equipment needs. The whole essence of leasing is to enhance the planning, improvement and development of any economy.

The fact that leasing facilitates long and convenient access to capital equipment goes to show the unique role of leasing in building, supporting productive ventures, improving/increasing capacity and developing the economy.

The leasing bill is long overdue and many players in the sector will heave a huge sigh of relief at its passing, as it will revolutionize the sector.