Nigeria's Leasing Sector Expands to N26.54 Trillion in 2025
Nigeria's leasing industry experienced a robust expansion in 2025, with the total outstanding lease volume increasing by 26.5 per cent to reach N26.54 trillion. This growth reflects a significant shift as businesses increasingly turn to asset-backed financing solutions in response to challenging economic conditions, including tight credit availability, elevated borrowing costs, and persistent foreign exchange pressures.
Surge in New Lease Transactions
Fresh data released by the Equipment Leasing Association of Nigeria (ELAN) highlights a notable rise in new lease transactions, which climbed by 40.27 per cent to N1.37 trillion in 2025, up from N973.3 billion in the previous year. This surge underscores the growing acceptance of leasing as a viable alternative to traditional bank financing, offering firms flexible funding options to acquire critical assets without the burden of heavy upfront capital commitments.
Industry Leadership and Economic Impact
Ehigiamusoe Elizabeth Ngozi, Chairman of ELAN, emphasized that the sector's performance demonstrates its resilience and expanding role in supporting economic activities across various 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 stated. Over the past decade, leasing has contributed approximately N30.08 trillion to Nigeria's economy, reinforcing its position as a critical driver of enterprise growth, especially for firms facing limited access to credit.
Sectoral Analysis and Dominant Industries
A detailed sectoral analysis reveals that oil and gas maintained its dominance in 2025, accounting for 50.1 per cent of new leases valued at N689 billion. Following closely, transportation and logistics represented 27 per cent with N369.8 billion, while telecommunications accounted for 8.07 per cent. Manufacturing contributed seven per cent, and other sectors, including healthcare and education, made up the remaining 7.3 per cent.
Macroeconomic Factors Driving Growth
Tunde Netufo, Vice Chairman of ELAN, attributed the industry's growth to prevailing macroeconomic conditions, particularly the surge in asset prices triggered by exchange rate volatility. This environment has made leasing an attractive option for businesses seeking to navigate financial uncertainties and secure necessary equipment and infrastructure.
The sustained expansion of Nigeria's leasing industry signals a broader trend towards alternative financing mechanisms, offering a lifeline to enterprises amid ongoing economic challenges and positioning the sector as a key component of the nation's financial landscape.
