Equipment Leasing Act Will Enhance Sector’s Growth – ELAN Boss | Independent Newspapers Limited
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Equipment Leasing Act Will Enhance Sector’s Growth – ELAN Boss

Posted: Jun 2, 2015 at 12:00 am   /   by   /   comments (0)

By Akinwunmi King – Lagos


Chairman, Equipment Leasing Association of Nigeria (ELAN), Chuka Onwuchekwa, says the recent enactment of the equipment leasing bill by the Federal Government, wiould usher in a new dawn for the leasing industry.

Onwuchekwa, who noted that the enactment of the law was in response to calls by ELAN and other stakeholders to ensure that the business of equipment leasing was practised in line with internationally acceptable standards, added that the development would further facilitate the growth of leasing business in Nigeria, creating wealth and overall economic development.

In a statement issued on Friday, ELAN Chairman highlighted some of the benefits of the bill 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.

Stating further that it would enable ordinary Nigerians acquire assets to enhance quality of life, he said modern leasing which started in Nigeria in the 1960s, had over the years been supporting economic development of the country through the provision of 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 – 2014),” said he.

Onwuchekwa revealed that globally, equipment leasing was now recognised 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,” he added.