EQUIPMENT Leasing Association of Nigeria (ELAN) has decried the state of infrastructure in the country.The leasing experts, who converged at the ninth National Lease Conference in Abuja, stressed the need for infrastructure development as a fundamental need for any country aspiring to develop.In the Communique, which came out after the conference, the participants noted that power assumes centre stage, as it has been widely agreed to be the driver of development, without which we cannot hope to harness our huge human resource.The participants also decried the inconsistency in government policy, saying that it is inimical to long term investment in Nigeria. Double taxation also came under the scrutiny of the leasing experts.They noticed that double taxation is an impediment to the industry- the adverse effects of value added tax (VAT), which amounts to double taxation is huge. According to them, Withholding tax, which depletes the real value of a lease, capital allowances, as well as inadequate funding and absence of appropriate legal framework are problems facing the practice of leasingThey also said that physical security is a necessary condition for long-term investment and while government must have an integrated approach to development, for example, rural electrification must align with the agricultural value chain.Meanwhile, the association stressed an urgent need to have a law in place to regulate and protect the leasing industry.However, it explained, a leasing law may not necessarily make the leasing industry more safe and visible. It is fundamental to have institutional culture and system that are firmly connected to political advocacy and awareness generation. ''We must equally create an institution of leasing,'' it said.Speaking at the event, the chairman of ELAN, Kehinde Lawanson said that in the next few years, the Nigerian leasing industry will enter a new phase following the transformation agenda of the present administration, which is targeting N35 trillion investments in growth areas in the next four years.According to him, the overall objective of the government is to ensure a turnaround of the country's infrastructure and is expected to provide the needed tonic for economic regeneration particularly in the power sector.His words: 'This new dispensation presents immense opportunities for leasing in terms of the huge demand for capital equipment that would arise hence the weaving of this year's conference around infrastructure development with special focus on the power sector. The key challenge to the leasing industry is the capacity to meet this demand. It is important for the leasing industry to develop a strategic response to this opportunity.''As a result of our interface with the relevant authorities, I believe we are on the path of placing leasing at the vanguard of activities towards successful actualisation of federal government developmental policies. We will continue our efforts in ensuring that our members and other stakeholders benefit from the immense opportunities presented by this development,'' he saidTalking about leasing in Nigeria, Lawanson explained that leasing is relatively young in Nigeria, the industry has continued to contribute to the socio- economic development of the country through the provision of the much needed capital assets for productive ventures particularly to the SME's which is the bed rock of any economy.His words: 'Today, the impact of leasing is becoming more pronounced in all sectors of our national life. Notwithstanding the difficult operating environment, statistics from our members show an outstanding lease volume of N538 billion in the year 2010 indicating a growth rate of 21 percent over 2009 figure of N445 billion. The oil and gas sector maintained its lead achieving about 40 per cent growth, followed by an impressive performance from transportationat 37 percent growth, where commercial vehicles for passengers and haulage remained the major attraction to lessors. The total figure for the industry could well be over N500 billion taking''It is gratifying to note that our efforts at resuscitating the bill to regulate equipment leasing in Nigeria is on course. The history of the bill is a very pathetic one as it was passed by the fifth National Assembly but was not assented to by the president before the expiration of the Obasanjo's administration due to administrative bottlenecks, hence the decision of the sixth National Assembly to retool the bill.''The bill went through full legislative cycle at the immediate past House of Representatives and was transmitted to the Senate where it went through first reading before the expiration of the tenure of the sixth National Assembly.''Notwithstanding these obstacles, we remain steadfast in the pursuit of the enabling law and urge the National Assembly to accelerate the process so that the industry will be placed in a better position to contribute meaningfully to the economic development of the country.''The bill when finally enacted will to a large extent lead to the expansion of leasing activities. It will bring about a healthier environment by addressing major constraints assailing the industry, which include high incidence of default, cumbersome repossession process, quackery and the dubious activities by some nefarious individuals and corporate bodies.
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