The devastating effect on lives and global economy by Covid 19 is no longer news. Global economies are now in a similar state as their public health services – on emergency. While cure is being sought for the scourge, countries across the world including Nigeria are putting palliatives in place to cushion the shocks aimed at keeping the economy from total collapse.
While it is hard to accurately capture the impact, due to the uncertainties, such as how long the outbreak will last, the effectiveness of current policy measures, and how people and businesses will respond to these measures, there are certain headwinds that are becoming glaring in the leasing industry such as:
- Delayed rental payment due to slow business activities
- Increased cost of assets and operations, resulting from recent “adjustment” of the Naira and other impacting variables. This will affect the capacity to finance more lease transactions.
- Tight liquidity, as a consequence of delayed rentals, few or absence of new transactions.
- Demand shift to more productive and essential assets as non-essential commodities will be less sought after.
This period calls for reinvention – finding ways to keep tap with customers and potential leads, focusing on essential asset financing, deepening risk assessment, developing appropriate cost saving mechanism and improving processes etc.
Essentially, it is imperative for the leasing industry to understand the impact of the emerging scenario and develop strategy to navigate through to stay afloat.
We shall therefore appreciate sharing your thoughts and experience especially on two critical areas:
- The impact on leasing business; and
- Advice to overcome the challenges or mitigate the impact, including any action expected from the Government.
This will form part of the response to help members at this critical period in their businesses.
“A broom stick cannot sweep by itself”- African proverb
Kindly make your contribution here or send to info@elannigeria.org
Thank you for your support.