In a fast-evolving global economy where access to tools and technology is crucial for survival, equipment leasing is emerging as a game-changing strategy for businesses seeking growth without the burden of heavy capital expenditure. Across markets, from the tech corridors of the United States to the farm fields of Nigeria, more companies are choosing to lease rather than buy, drawn by the flexibility, cost-efficiency, and access to cutting-edge equipment that leasing offers.
Nowhere is this shift more evident than in Nigeria, where equipment leasing volume surged to ₦4.19 trillion in 2023. This marks a remarkable 28.7 percent increase from the previous year, according to figures from the Equipment Leasing Association of Nigeria (ELAN). Globally, the market continues its impressive climb, with total lease volume estimated at $1.86 trillion in 2024, up from $1.55 trillion just a year earlier. It is a strong endorsement of the “lease it, don’t buy it” mantra that is rapidly reshaping business financing.
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At the heart of this transformation in Nigeria is LECON Finance Company Limited, a pioneer in the country’s leasing industry with roots dating back to 1977. Originally established under Nigeria’s indigenisation policy, LECON began as a subsidiary of the Nigerian Industrial Development Bank, now Bank of Industry. Over the decades, it has evolved from a traditional leasing outfit into a full-fledged development finance institution. A strategic rebrand in 2022 underscored this shift, positioning LECON not just as a leasing provider but as a growth partner for businesses across high-impact sectors.
“Our mandate is simple but powerful, enable businesses to thrive by giving them affordable, flexible access to the equipment they need,” says Ebehiriere Ehi-Omoike, Managing Director of LECON Finance Company. “We’re not just leasing assets, we’re financing productivity, competitiveness, and economic growth.”
Over the past 30 years, LECON has financed more than 230 projects across key sectors like agriculture, manufacturing, healthcare, logistics, education, and renewable energy. Smallholder farmers have gained access to tractors and processing equipment, significantly improving yields and incomes. In education, LECON has equipped schools with digital learning tools, while healthcare providers have leased diagnostic machines like MRIs and dialysis units. These are tools that were once financially out of reach.
One standout example is the support given to the Tomato Crate Owners Association, which secured modern storage equipment through LECON, drastically cutting post-harvest losses. In manufacturing, the company has funded production lines and machinery that help local companies scale operations and meet quality standards. Its reach also extends to logistics and transport, where leasing delivery fleets has helped businesses optimise supply chains and improve last-mile delivery.
LECON’s leasing model is built around two core structures, operating leases and finance leases. An operating lease allows businesses to use equipment for a fixed term while ownership remains with LECON, making it ideal for short to medium-term needs. A finance lease gives the lessee control over the asset for most of its useful life, typically with the option to purchase it at the end of the term. Beyond these, LECON also offers hybrid lease options, including sale and leaseback arrangements and synthetic leases, tailored for more complex financial or tax planning requirements.
The financial advantages of leasing are significant. Businesses conserve capital, avoid long-term bank debt, and still access modern equipment. Lease payments are tax-deductible, and companies can upgrade their machinery at the end of each lease cycle, eliminating the risk of being stuck with obsolete equipment.
To ensure wider accessibility, LECON has simplified its leasing process, especially for small and medium-sized enterprises. The company offers flexible payment plans aligned with business cash flow cycles, reduced documentation requirements, and value-added services such as asset insurance, real-time tracking, and advisory support on project planning and risk management.
Currently, LECON is focusing on high-potential sectors that are critical to inclusive and sustainable development in Nigeria. These include food and agro-processing, mining and solid minerals, renewable energy, healthcare and pharmaceuticals, telecoms and ICT, and women-led enterprises. Its approach to gender-focused financing provides dedicated support for women entrepreneurs across these sectors, ensuring more equitable access to capital and equipment.
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Backed by a strong governance framework, LECON holds an ‘A’ rating from Agusto and Co, underscoring its financial soundness and operational integrity. Its affiliation with the Bank of Industry and technical collaborations with partners like the World Bank also position it to deliver impactful and scalable financing solutions for Nigeria’s real economy.
As equipment leasing continues to gain traction both globally and locally, LECON Finance Company is not only adapting to the shift but actively shaping it. With a model that blends innovation, access, and impact, the company is driving real transformation in how Nigerian businesses acquire the tools they need to compete.
“In the end,” says Ehi-Omoike, “it’s not just about equipment. It’s about what that equipment enables, a better-run factory, a more efficient farm, a modern hospital, or a digitally empowered school. That’s the difference we’re making, one lease at a time.”
