Leasing Company Reports N23.96 Billion in Gross Earnings For 2023
- A leading leasing firm, C&I Leasing, has reported gross earnings of N23.96 billion in 2023
- The company said the gross earnings represent a 19.91% increase compared to the 2022 earnings
- The development comes amid growth in the leasing industry in recent times
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A leasing and business services conglomerate in Nigeria, C&I Leasing Plc, has reported Group gross earnings of N23.96 billion as of December 2023, compared to N19.98 billion recorded in 2022, representing a 19.91% increase.
The company's net income totalled N12.4 billion compared to N9.24 billion a year ago. Operating costs increased to N1.37 billion on the back of the higher inflationary operating economic environment, whilst revenue per employee rose strongly as personnel costs declined by 15%, Year-on-Year.
Source: UGC
Nigeria's leasing industry experiences growth
Commenting on the result, Lenin Ugoji, the Group Managing Director, attributed the increase to improved marine business, average revenue per vessel, focused Operational efficiency initiatives, and marginal growth in its Fleet Management Unit, which helped sustain earnings growth across major revenue lines.
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"The year 2024 is expected to see the company benefit from an increased global and local oil production rally amidst the need for greater oil revenue by the Federal Government," Ugoji added.
According to reports, the Nigerian Leasing Industry recorded 1.6% growth in Q1 2022.
Data shows that outstanding lease volume in Q1 2022 stood at N2.629 trillion against N2.587 trillion in Q4 2021.
Leasing in the oil and gas sector grows
The oil and gas sector grew by 22% with N748bn of the outstanding leases, followed by the Transportation & Logistics sector, which grew by 21%, recording N622bn; Manufacturing 12% - N380bn; Telecoms taking 11% of the total volume arriving at N237bn.
Others (including Healthcare and Education accounted for N300bn (14%), with Agriculture and Government recording considerable growth.
The growth was attributed to the stability in the microeconomic environment following the continuous recovery from the COVID-19 era, which was experienced in the first quarter.
Many companies jostle for market share
The finance lease, as usual, maintained its lead position with 55% of the total transaction, while the operating lease took 45%.
Recently, an operating lease has been increasing its share in the marketplace, owing to the dictates of the market - the preference of corporate bodies to focus more on their core activities and outsource other operational functions such as transportation and other logistics services. Also, as a risk mitigant and niche market for several lessors in the industry.
NNPC acquires Oando petrol stations
Legit.ng reported that The Nigerian National Petroleum Company Limited (NNPCL) reportedly paid $325.09 million to acquire Oando retail stations and a reception jetty in Apapa, among other facilities owned by Oando.
The national oil company announced in October 2022 that it acquired OVH Energy Marketing, operators of the Oando downstream assets.
The company did not disclose the price at which it bought the assets and which company sold them.
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Source: Legit.ng
