Leasing contributed N14.3trn to GDP in 10 years – ELRA

The Chairman of the Board of the Equipment Leasing Registration Authority (ELRA) Engineer  Saidu Njidda, has disclosed that the agency has  over the last 10 years, contributed over ₦14.3 trillion to the country’s GDP and continues to be more relevant especially under the prevailing situation where access to finance is difficult, especially for Micro Small and Medium Scale Enterprise (MSMES).

The Chairman of the Board of ELRA, Engineer  Saidu Njidda, who spoke on behalf of other members, during the inauguration, observed that the implementation of the Equipment Leasing Act, a viable alternative to loan heralds a new era of enhanced revenue generation given that the industry is capable of generating an estimated total volume of $1.5 trillion  globally accounting for 20% of total investment in equipment and contributing about 1.5% of Gross Domestic Product (GDP).

The Chairman also notes that Equipment Leasing as an alternative and significant source of finance to loans has been immensely contributing to capital formation in the global Economy with its wide usage in many countries for the acquisition of capital assets.

He highlights that the major players in the Leasing industry in Africa include South Africa, Morocco and Nigeria who are ranked amongst the top 50 Leasing Countries in the world with Ghana, Rwanda, Egypt, Kenya, Tunisia and Angola, playing significant roles.

Speaking during the inauguration ceremony which held at the Conference Room of the Ministry of Finance, Budget and National Planning, Finance Minister, Mrs. Zainab Ahmed said, “The whole essence of Leasing is to enhance the planning, improvement and development of any economy, by building and supporting productive ventures, through capital formation, generating employment and creating wealth”.

She charged members of the Board of ELRA not only to regulate the industry but to also sensitize members of the public on the benefits of equipment leasing adding that the National Bureau of Statistics (NBS), should as part of their activities, report on the equipment leasing activities throughout the country.

The new board comprises 11 members including Engr. Saidu Njidda, Executive Chairman, Barr. Bassey Imoh, Registrar/Secretary, one representative each from the CBN, SMEDAN, NACCIMA, Federal Ministry of Finance, Budget and National Planning, Federal Ministry of Justice, Federal Ministry of Trade and Investment, and three representatives from the Equipment Leasing Association of Nigeria, the umbrella body of lessors which sponsored the bill.