Nigeria's leasing sector is positioned for a period of more robust and sustainable expansion in 2026, fueled by a more stable macroeconomic environment, pivotal regulatory changes, and consistent demand for financing tied to physical assets. This optimistic forecast is detailed in the newly released Nigerian Leasing Industry Outlook for 2026.
Record Volumes and Sustained Momentum
The industry's foundation is remarkably strong. Recent data confirms that the total value of outstanding leases soared past a significant milestone, reaching over N5.16 trillion in 2024. This figure marks an impressive year-on-year increase of 23.2%. The growth trajectory did not falter in the following year. By the first quarter of 2025, the total outstanding lease portfolio had climbed to approximately N5.36 trillion, representing a further 3.7% rise from the end of 2024. Market leaders anticipate that the full-year results for 2025 will confirm another cycle of double-digit growth.
This consistent performance underscores the sector's resilience and its growing strategic value to the national economy. Industry experts highlight that leasing has become an indispensable alternative for companies grappling with challenging credit conditions, high borrowing costs, and increasing prices for essential equipment.
Key Drivers and Dominant Sectors
Commenting on the sector's dynamics, the Chairman of the Board of Directors for the Equipment Leasing Association of Nigeria (ELAN), Mrs. Ehigiamusoe Elizabeth Ngozi, identified the core areas fueling demand. "The demand from the industry has been strongest in transportation and logistics, oil and gas, manufacturing, and infrastructure," she stated. This demand is propelled by the country's persistent infrastructure gaps, the expansion of logistics networks, and the urgent need to replace outdated machinery and vehicles.
Vehicle and fleet leasing continue to be the most prominent segment, making up more than 50% of all leased assets. This dominance mirrors the logistics-intensive nature of Nigeria's economy and the rising mobility requirements across both government and private enterprises. Mrs. Ngozi also pointed out that the sharp increase in the cost of acquiring assets, following recent policy shifts like the removal of fuel subsidies and changes in the foreign exchange market, has made leasing an even more attractive option for cost-conscious businesses.
Regulatory Boost and Future Opportunities
Beyond the current hotspots, industry operators see promising growth frontiers in several other vital sectors. These include agriculture, healthcare, telecommunications, education, and renewable energy. A significant factor boosting confidence across these areas is the improved regulatory framework.
The implementation of the Equipment Leasing Act and the operational launch of the Equipment Leasing Registration Authority (ELRA) have provided much-needed clarity. These developments have strengthened protections for asset ownership, enhanced the enforceability of contracts, and ultimately bolstered investor confidence in the leasing ecosystem. This solid legal foundation is expected to support the industry's expansion into these new sectors throughout 2026 and beyond.
In essence, by allowing businesses to align asset usage with revenue generation, leasing has firmly established itself as a preferred strategy for preserving cash flow and prudently managing financial risk. As macroeconomic conditions continue to stabilize, Nigeria's leasing industry is set to play an even more critical role in powering the nation's economic development.
