Statistics have revealed that, 67 % of vehicles imported into the country in 2012 were fairly used vehicles, that is, pre owned, even as Nigeria imported vehicles worth $4 billion in the same year.
These statistics emerged at the Equipment Leasing Association of Nigeria (ELAN) forum on "Implication of Automotive Policy on Equipment Leasing in Nigeria" which held last Thursday in Lagos.
Statistics have revealed that, 67 % of vehicles imported into the country in 2012 were fairly used vehicles, that is, pre owned, even as Nigeria imported vehicles worth $4 billion in the same year.
These statistics emerged at the Equipment Leasing Association of Nigeria (ELAN) forum on "Implication of Automotive Policy on Equipment Leasing in Nigeria" which held last Thursday in Lagos.
In his presentation at the occasion, Alfred Okugbeni, Managing Director/CEO, Nigeria Sinotruck Limited stated that the annual vehicular demand in Nigeria was about 500,000 per annum, adding that the country, with a growing middle class population could sustain automotive industry.
He noted the growth in the outstanding leasing volume in Nigeria from N671 billion in 2012 to N780 billion in 2013, representing 16 per cent income as against 7.8 in 2012.
Okugbeni drew attention to the fact that it was not just last year issue, adding that it has been a con tenuous trend of growth.
Citing the growth figures from 2004 to 2013," you will see that the lease volume has continually grown over the years.
He added: "even as huge as the figures are, there are still double digit growth in the leasing volume and this level of growth is bound to continue, if certain conditions are put in place".
On the leasing assets composition, he said, plant and machinery was 16 per cent; computer and office equipment, 10 per cent; aircraft and ship, 5 per cent; all other assets, 11 per cent; while cars and commercial vehicles in 2013 constituted 58% of the total value of assets, not just in volume but in value.
He explained that for every N10 million spent in lease assets, N5.8 million was spent in vehicle leasing, which according to him, showed the import of the automotive industry in the scheme of equipment leasing in Nigeria.
Earlier in his welcome address, the Chairman, Board of Directors, ELAN, Chuka Onwuchekwa noted that the impact of leasing was quite glaring major sectors of the economy; facilitating access to the much needed capital equipment for productive ventures is key, adding that it would continue to be significant especially in present realities where acquisition of productive assets
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