WELCOME ADDRESS BY MR OLUTOYIN OKEOWO, CHAIRMAN, BOARD OF DIRECTORS, EQUIPMENT LEASING ASSOCIATION OF NIGERIA (ELAN) AT THE 16TH ANNUAL NATIONAL LEASE CONFERENCE HELD ON THURSDAY, 15TH NOVEMBER 2018 AT MITROS RESIDENCES HOTEL, IBARA, ABEOKUTA, OGUN STATE
The Special Guest of Honour/Chief Host, His Excellency Senator Ibikunle Amosun CON, FCA, the Executive Governor of Ogun State
Royal Father of the Day, HRM Oba Aremu Gbadebo, the Alake of Egbaland
Chairman of the Occasion, Mr Tunde Lemo, former Deputy Governor, Central Bank of Nigeria and Chairman, Federal Emergency Road Maintenance Agency (FERMA)
Esteemed Guest Speakers and Panellists
Distinguished Special Guests
Directors and Members of ELAN
Gentlemen of the Press
Ladies and Gentlemen,
It gives me great pleasure to extend to you all a very warm welcome, on behalf of the Equipment leasing Association of Nigeria, to the 16th Annual National Lease Conference organised by ELAN. I am especially honoured to welcome Your Excellency, the Executive Governor of Ogun State, His Excellency Senator Ibikunle Amosun CON, FCA. Also, the Royal Father of the Day, HRM Oba Aremu Gbadebo, the Alake of Egbaland, Chairman of this occasion, Mr Tunde Lemo, esteemed Guest Speakers/Panellists and other dignitaries. We express our most sincere gratitude to you for creating time to honour our invitation in spite of your very busy schedules.
The annual National Lease Conference is the biggest gathering of stakeholders in the Nigerian leasing industry, providing a major platform for engagement on pertinent issues affecting the development of the leasing industry and economy, exploring opportunities as well as promoting business networking.
This year’s event with the theme “ENHANCING THE VALUE PROPOSITION OF EQUIPMENT LEASING TO NIGERIA’S ECONOMY” is essentially aimed to further propagate the ideals of leasing to national economic development and stimulate more valuable investments at this period where the economy is still struggling to get out of the woods.
The Federal Government has embarked on several initiatives to revitalise the economy, including the Economic Recovery and Growth Plan (ERGP). Although the economy is still fragile, the economy trajectory has been showing positive signs. Recent statistics indicate estimated GDP growth of 2.1% for 2018 up from 0.8% in 2017, reflecting improved oil prices, revenue and production as well as the recently introduced foreign exchange measures that contribute to better foreign exchange availability and rate stability.
The positive trajectory for the economy should gain steam as the government begins to implement the structural reforms outlined in the ERGP and the multiplier effects of investment in infrastructure alongside the improvement in business environment begin to manifest. However, there is the need for the growth to be inclusive, especially in the areas of job creation, poverty alleviation and economic diversification
The attributes of leasing which centre on easy and convenient access to capital equipment, can be brought to bear to support the government developmental initiatives and achieve inclusive growth. I therefore call on Governments at all levels to utilise leasing in its developmental agenda and pledge the willingness of the leasing industry to collaborate with Government at all levels to achieve the set out economic initiatives.
Indeed, equipment leasing has gained significant global recognition as a creative financing alternative, generating new business volume of over $1trillion annually. The appeal of leasing lies in the fact that it delivers a multiplicity of benefits to those who choose to lease. It helps all types and sizes of businesses to conveniently acquire the much needed equipment to conduct their business operations and make profit. Also, in many developing countries, such as Brazil, Zambia, Pakistan, South Africa, leasing is at the forefront of investment in the extractive industries, transportation, agriculture, telecommunications, roads and other infrastructure.
In Nigeria, the impactful visibility of leasing is increasing, contributing to capital formation in the economy and creating wealth. In 2017, outstanding lease volume was estimated at N1.44trillion, up from 1.26trillion in 2016, representing a growth rate of 14.5 percent. Assets worth over N8.98trillion have been financed in the past fifteen years and the outlook for the industry remains optimistic. This optimism, is predicated on the fact that there is still wide financing gaps in all sectors of economy and the increasing relevance of leasing to capital formation with the challenge of access to finance especially to MSMEs and the expected Government’s commitment to the various initiatives aimed at consolidating growth and development in the economy.
While, the future of leasing appears bright, it is imperative to note that the industry needs the continued support of stakeholders to fully realise the potential of the industry. A significant step in this direction is the immediate setting up of the Equipment Leasing Registration Authority. In 2015, the Equipment Leasing Act was enacted as part of the support framework for the leasing industry. The Act brings together relevant stakeholders under a public private partnership arrangement with the Ministry of Finance empowered as the supervisory ministry for the leasing industry. The Registration Authority is expected to give effects to the intent and purport of the Act, to achieve its developmental objectives.
We therefore use this opportunity to appeal to the Minister of Finance to formally inaugurate the body, so that the industry can start enjoying the full benefits of the Act. Already, both local and foreign investors are waiting in the wings to take advantage of the Act to invest in the leasing industry.
At this juncture, permit me to say that the success story of the Nigerian Leasing Industry will not be complete without acknowledging with deep sense of appreciation His Excellency’s contributions towards providing the foundation for an enduring legal framework for the industry in 2006, as a then Distinguished Senator and Chairman of the Senate Committee on Commerce. This selfless sacrifice culminated into the enactment of the 2015 Equipment Leasing Act.
Another area of concern is that of getting appropriate funding mechanism to finance lease transactions. The prevalence of short term funding sources, which are usually expensive, limit the capacity of lessors to finance leases. This issue has been aggravated with the devaluation of the Naira, which increases the cost of assets and the waning appetite of banks to lend money. ELAN has been engaging financiers on this issue as we continue to appeal to the government to include leasing in the various intervention funds for the development of targeted sectors of the economy.
Distinguished Ladies and Gentlemen, without pre-empting further, I am very optimistic that with the line up of presentations and quality participation at this Conference, these issues focusing on the development of the Nigerian Leasing industry and economy will be given the utmost consideration. At the end of the day, we expect to come out with key resolutions from the cross-pollination of ideas and discussions that would propel leasing to greater heights.
It is also an opportune time to create new contacts and expand your business networking. Delegates at this Conference represent diverse sectors including
leasing practitioners, government and the business community in Ogun State. We therefore urge you to engage and maximise your benefits.
Before ending this address, permit me to briefly say something about ELAN to some of us who are not members of ELAN. The Association was established in 1983, is today the chief promoter of leasing business in Nigeria, with strong advocacy, capacity building, lease education and awareness, research, advisory as well business networking and other promotional functions. Over the years, with the support of stakeholders, we have continued to pursue activities in these areas to the benefit of the Nigerian leasing industry and economy. I therefore urge interested corporate organisations, professional firms and individuals present here to join us so that together, we can build a solid leasing industry that would improve lives, businesses and contribute more to national growth and development.
Finally, on behalf of ELAN, welcome once again to the 16th National Lease Conference and I wish us a rewarding session
Thank you.
OLUTOYIN OKEOWO
CHAIRMAN, BOARD OF DIRECTORS, ELAN