2023 Finance and Leasing Industry Report

Overview of the Report

The Finance and Leasing Industry in Nigeria, established in 1959, has seen significant growth, with over 100 licensed finance companies by 2023. The industry serves as a vital source of financing for low- and middle-income earners, MSMEs, and capital-intensive industries such as oil and gas, transportation, and telecommunications. However, fragmentation persists, with more than 240 smaller independent lease providers operating outside regulatory oversight. Despite growth in assets and loans driven by increasing credit demand, challenges such as high funding costs, competition from microfinance banks and digital lenders, and regulatory constraints hinder the industry’s expansion.

The industry is bifurcated into finance-focused and leasing-focused companies, with finance leases being predominant. Major players in the finance-focused segment include Credit Direct Limited and Zedvance Finance Limited, while C & I Leasing Plc and A & A Global Leasing Services Limited are major players in the leasing space. Looking ahead to 2024, the industry faces a somewhat pessimistic outlook due to lower disposable incomes, higher funding costs, and elevated interest rates. Opportunities exist in sectors such as oil and gas, where equipment leasing operators may benefit from a market rebound. Addressing funding challenges, enhancing regulatory oversight, and incorporating ESG factors into lending practices are crucial for sustainable growth and stability.

This report provides current information on the features and performance of the Finance & Leasing Industry in Nigeria (“the Industry”). The report includes:

  • Assessment of the structure of the Nigerian Finance & Leasing Industry
  • Comprehensive overview of the lending and funding markets
  • Analysis of the competitive environment of the Industry
  • Strengths, weaknesses, opportunities and threats of the Industry

We believe the information, analysis and opinions contained in this industry report would be useful to:

  • Bankers and financiers who wish to assess the creditworthiness of Industry players
  • Operators who wish to gain a better understanding of developments in the Industry
  • Analysts, investors and other users who require a good understanding of the Industry and seek to follow the trends