Nigeria’s leasing industry is expected to record stronger and more sustainable growth in 2026, supported by improving macroeconomic stability, regulatory reforms, and sustained demand for asset-based financing across key sectors of the economy.
This outlook was detailed in the Nigerian Leasing Industry Outlook, 2026, themed “Continued Growth Amid Macroeconomic Stability.” The report highlights that leasing is increasingly becoming a vital financing channel for businesses navigating high interest rates, rising asset costs, and tight credit conditions.
With outstanding lease volumes already exceeding ₦5 trillion and projected to maintain double-digit growth, industry operators said the sector’s recent performance underscores its resilience and strategic importance to Nigeria’s economic development.
“Despite inflationary pressures, foreign exchange volatility and elevated financing costs, leasing companies have continued to support productive activity by enabling access to essential assets,” the report noted.
Strong Performance in 2024 and 2025
Industry data revealed that outstanding lease volumes rose to over ₦5.16 trillion in 2024, representing a 23.2% year-on-year increase. Growth momentum continued into 2025, with total outstanding leases reaching approximately ₦5.36 trillion in Q1, up 3.7% from end-2024 levels. Market operators anticipate that full-year 2025 figures will confirm another round of double-digit growth, reinforcing leasing’s expanding role within Nigeria’s financial system.
Sectoral Demand Driving Growth
Mrs. Ehigiamusoe Elizabeth Ngozi, Chairman of the Board of Directors of the Equipment Leasing Association of Nigeria (ELAN), said the strongest demand has come from transportation and logistics, oil and gas, manufacturing, and infrastructure, driven by infrastructure deficits, logistics expansion, and the replacement of ageing assets.
“Vehicle and fleet leasing remain dominant, accounting for more than half of total leased assets, reflecting Nigeria’s logistics-driven economy and rising mobility needs across both the public and private sectors,” she said.
Rising Asset Costs Boost Leasing Appeal
The sharp rise in asset acquisition costs over the past two and a half years—following the removal of fuel subsidies and foreign exchange market liberalization—has strengthened the appeal of leasing. By allowing businesses to match asset usage with revenue generation, leasing has emerged as a preferred option for preserving liquidity and managing balance sheet exposure.
New Opportunities and Regulatory Support
Industry operators also highlighted emerging growth opportunities in agriculture, healthcare, telecommunications, education, and renewable energy. They noted that improved regulatory clarity—following the implementation of the Equipment Leasing Act and the commencement of operations of the Equipment Leasing Registration Authority (ELRA)—has enhanced asset ownership protection, contract enforceability, and investor confidence.
As Nigeria’s economy continues to stabilize and businesses seek more flexible financing options, the leasing industry is set to play an increasingly significant role in driving growth and supporting infrastructure development nationwide.