ELAN urges FG to implement leasing act to attract FDI

Stakeholders in the Nigerian leasing industry have called on the federal government to take immediate steps to implement the Equipment Leasing Act 2015, to enable the industry get the much needed foreign direct investments.

Speaking on behalf of his colleagues in a chat with news men in Lagos, Chairman of Equipment Leasing Association of Nigeria (ELAN), Chuka Onwuchekwa said the industry cannot contribute to the nation’s gross domestic product (GDP) if it continues to rely on short term funding from the banks.

The federal government had in recognition of the developmental role of leasing, provided a specific law on leasing tagged, “The Equipment Leasing Act 2015,” as part of the support frame work that will stimulate development in the industry to enable it contribute more effectively to the national economic development.

Onwuchekwa who praised the federal government for putting the law in place admitted that the legal frame work for leasing in the country was weak before enactment of the equipment leasing act.

According to him, “There was no specific legislation on the subject, we relied basically on the common law and other provisions scattered in other laws. This structure was inadequate to cater for the level of sophistication the industry has attained over the years and achieve its full potential. The new law is expected to strengthen the existing legal structure that would promote sustained development in the industry.

It provides minimum legal framework for leasing that would enhance confidence, encourage leasing investment from foreign and local investors and most importantly, provide sanity, certainty and protection to leasing stakeholders including lessors, lessees, equipment suppliers and other investors.”