Effect of Leasing on Economic Development of Nigeria

1 Idaka, Sunday Egbe (B. Sc., M. Sc)
2 Ogar-Abang, John Oyong
1 & 2 Department of Accounting, University of Calabar,
P.M.B. 1115, Calabar, Cross River State-Nigeria
2 idakasunday@yahoo.com

ABSTRACT
This study examined the effect of lease option on economic development in Nigeria. The study
employed Ex-post facto research design because secondary data were used and data were collected
from quoted leasing firm on the Nigeria Stock Exchange from 2009-2017. In the course of the
research, two research objectives were formulated and the two research questions that guided the
research were accordingly converted into null and alternative hypotheses. These were tested at 5
percent significance level and 7 degree of freedom. The data collected were analyzed with the aid of
Ordinary Least Square (OLS) multiple regression technique. The findings from this study showed
that there is a significant positive correlation between finance lease, operating lease and gross
domestic product for the period that was reviewed. Based on this, it was concluded that leasing firms
play a significant role in the attainment of economic development. This is obvious from the result
because the growth of any economic is a function of availability of equipment and other
infrastructural facilities that are available for business to thrive. It was therefore recommended that
government should encourage the development of leasing firms to continue to make equipment and
other facilities needed by firms especially those with poor credit history and entrepreneurs to have
access to machines/equipment through any of the leasing option convenient to them. (218)
KEY WORDS: Leasing option, rationale for leasing sector development and leasing in emerging
economies.

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