The Equipment Leasing Association of Nigeria (ELAN) has listed leasing as a major financing tool that can bring the economy out of the woods.
This was highlighted in its 2021 outlook released by the association. It stated: “Rebuilding the economy requires huge capital and the growing cost of assets, hinders the capital formation in the economy. Governments at all levels must seek innovative and proactive ways in achieving their development-oriented initiatives.
“One of these options is equipment leasing – a creative financing alternative, utilised globally to stimulate economic development and growth. The appeal of leasing is underscored in its developmental attributes of enhancing capital formation in the economy that drives job creation, revenue, better life and economic growth”
The association commended the Government on the 2021 budget tagged ‘Budget of Economic Recovery and Resilience’, which is expected to accelerate the pace of Nigeria’s economic recovery, promote economic diversification, enhance competitiveness and ensure social inclusion.
The Chairman Board of Directors, ELAN, Dr. Olutoyin Okeowo, said the appropriation, signed alongside Finance Bill 2020 on the last day of 2020 in line with the promise of the government to return the nation to the January to December budget cycle, is well commendable.
He said: “The non-debt recurrent expenditure of ₦5.65 trillion seeks to ensure the continued payment of salaries and overheads in the public sector, while the capital indicates the new focus of government’s intention to complete as many ongoing projects as possible, rather than starting new ones.
“The level of expenditure, if implemented will stimulate activities in the economy.”