LEASE FINANCING BY NAL MERCHANT BANK PLC

LEASE FINANCING BY NAL MERCHANT BANK PLC

ABSTRACT
Merchant Banking is a recent development in Nigeria. However, the
business continues to be attractive to a quite number of industries.
This is so, due to rapid economic changes in the country, that results
to high cost of machinery and equipment. As a result. Leasing as a
form of financing the acquisition of capital assets has become a
favourable option to our industries and very popular among the
lessors and lessees alike in Nigeria. The paucity of information on
leasing in Nigeria and the general lack of awareness on the part of
the public as regards the financing of leasing are factors that
motivated this research.
This study focused on the financing associated with leasing business
and the inherent issue pertaining to such financing. For the study.
both the primary and secondary sources of collecting data were used.
The primary source of data involved personal contact with the
lessors, especially some of the merchant banks in the country. While
the secondary sources of data was used mainly for the review of the
relevant literature on leasing.
As non – conventional way of creating funds for capital acquisition,
equipment lease financing spread across to different sectors of the economy,
mainly manufacturing, agricultural, construction, distributive and service
industries. More recently, loan syndication is practice by merchant banks in
order to meet the growing need of funds by bigger industries to acquire
expensive equipment. This loan syndication provides a means whereby
banks pooled resources to finance heavily cost machinery. Therefore,
equipment lease financing tends to analyse the lessor – lessee relationship in
respect to the type of contractual agreement they entered. Tax aspect,
economic and accounting procedures of both lessor and lessee are analysed
To integrate series of economic reforms under Structural Adjustment
Programme (SAP) and to consolidate further, other Federal
Government Policies like Small and Medium Enterprises (SME)
Scheme, all increase the desire of our industries to be committed to
lease – financing as an alternative means to acquire an asset.

 

TABLE OF CONTENT

Title page- – – – – – – – – i
Approval page – – – – – – – -ii
Dedication – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – – -v
Table of content – – – – – – – -vi

CHAPTER ONE
INTRODUCTION – – – – – – – -1
1.0 Background of the study – – – – -1
1.1 Statement of the problem – – – – -5
1.2 Purpose of the study – – – – – -6
1.3 Significance of the study – – – – -8
1.4 Research questions – – – – – -9
1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39
Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60
Conclusion – – – – – – – – -61
Recommendations – – – – – – – -62
Suggestions for further research – – – – -64
References – – – – – – – – -65
Appendix I – – – – — – – – -68
Questionnaire. – – – – – – – -69

LEASE FINANCING BY NAL MERCHANT BANK PLC

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