LECON Finance Company Limited, a subsidiary of Nigeria's Bank of Industry (BOI), has received 'B' long-term and 'B' short-term issuer credit ratings from S&P Global Ratings, with a Stable Outlook. This rating underscores the leasing company's strategic importance within the BOI Group and expectations of continued parental support. The ratings align with those of its parent, BOI, reflecting LECON Finance's core subsidiary status.
S&P Global Ratings identified LECON Finance as a core subsidiary of BOI, noting that its ratings are aligned with those of its parent. The rating agency expects LECON Finance's ratings to move in tandem with those of BOI. This development is a significant milestone for LECON Finance, which provides operating lease solutions to BOI and finance leasing solutions to Nigerian clients.
LECON Finance's Managing Director/Chief Executive Officer, Ebehiriere Ehi-Omoike, expressed satisfaction with the 'B/Stable/B' rating assigned by S&P Global Ratings. The recognition of LECON Finance's strategic importance within the BOI Group reinforces the strength of its business direction and confidence in growth prospects. With parental support, a recapitalisation programme, and expansion of its finance leasing business, LECON Finance aims to deepen access to productive assets for Nigerian businesses.
At year-end 2025, operating leases accounted for 57 per cent of LECON Finance's total leases, while the company has expanded its finance lease portfolio to Nigerian micro, small, and medium-sized enterprises seeking to acquire productive assets. S&P noted LECON Finance's close alignment with BOI's development mandate, despite representing approximately 0.5 per cent of the Group's total assets at year-end 2025.
BOI deposited ₦20 billion with LECON Finance in 2025, with plans to convert the funds into equity subject to regulatory approval. This forms part of a broader ₦50 billion recapitalisation programme aimed at strengthening LECON Finance's capacity to expand its business. S&P also noted BOI's plans to leverage relationships with other development finance institutions to help LECON Finance mobilise cheaper funding.
Ehi-Omoike emphasised that the rating is particularly meaningful as LECON Finance scales its capacity to provide flexible, asset-backed financing to businesses across Nigeria. The company will continue to leverage its partnership with BOI and other stakeholders to expand access to productive assets, particularly for MSMEs, while maintaining strong asset quality, disciplined risk management, and sustainable growth.
S&P expects continued growth in LECON Finance's finance lease portfolio to further strengthen profitability, with finance leases projected to grow faster than operating leases. The agency also expects asset quality indicators to remain in check and projects continued improvement in profitability. The Stable Outlook reflects S&P's expectation that LECON Finance will remain a core subsidiary of BOI and receive support when needed.
Key points
- LECON Finance receives 'B' long-term and 'B' short-term issuer credit ratings from S&P Global Ratings with a Stable Outlook.
- The ratings reflect LECON Finance's strategic importance within the BOI Group and expectations of continued parental support.
- LECON Finance aims to deepen access to productive assets for Nigerian businesses, particularly MSMEs, while maintaining strong asset quality and sustainable growth.
