LECON Finance Company Limited, the leasing subsidiary of Nigeria's Bank of Industry (BOI), has received a 'B/Stable/B' issuer credit rating from S&P Global Ratings. This rating reflects LECON's strategic importance within the BOI Group and the expectation that its parent company will provide support when needed. The ratings cover the company's long- and short-term creditworthiness. S&P classified LECON Finance as a core subsidiary of BOI, aligning its ratings with those of the parent bank.
The rating action was taken on September 15, 2026, and S&P stated that LECON's ratings are expected to move in tandem with those of BOI. This links LECON Finance's credit profile to the financial strength and support of its parent company. The ratings agency noted that LECON Finance's business is closely aligned with BOI's development mandate. At the end of 2025, LECON Finance's assets represented approximately 0.5 per cent of the BOI Group's total assets.
LECON Finance is implementing a N50 billion recapitalisation programme aimed at increasing its capacity to provide asset-backed financing to Nigerian businesses, particularly micro, small, and medium-sized enterprises (MSMEs). As part of this programme, BOI deposited N20 billion with LECON Finance in 2025, with plans to convert these funds into equity, subject to regulatory approval. S&P noted that BOI also plans to use its relationships with other development finance institutions to help LECON Finance access cheaper sources of funding.
The Managing Director and Chief Executive Officer of LECON Finance, Mrs. Ebehiriere Ehi-Omoike, expressed satisfaction with the rating, citing confidence in the company's business direction and growth prospects. She emphasized that with the support of its parent company, the recapitalisation programme, and the continued expansion of its finance leasing business, LECON Finance remains focused on deepening access to productive assets for Nigerian businesses.
LECON Finance provides operating lease solutions to BOI and finance leasing services to Nigerian clients seeking to acquire productive assets. At the end of 2025, operating leases accounted for 57 per cent of LECON Finance's total leases. The company has been expanding its finance lease portfolio among MSMEs. S&P expects LECON Finance's business to continue expanding, supported by increased finance leasing activities.
S&P projects that finance leases will grow faster than operating leases, helping to strengthen LECON Finance's profitability. The agency also expects the company's asset quality indicators to remain under control and profitability to improve further. Ehi-Omoike stated that LECON Finance will continue to leverage its partnership with BOI and other stakeholders to expand access to productive assets across Nigeria.
S&P's stable outlook reflects its expectation that LECON Finance will retain its status as a core BOI subsidiary and receive parental support when necessary. The ratings agency's assessment is based on LECON Finance's strategic importance within the BOI Group and its alignment with the parent company's development mandate. The company is expected to maintain its focus on asset quality, disciplined risk management, and sustainable growth.
Key points
- LECON Finance receives 'B/Stable/B' issuer credit rating from S&P Global Ratings.
- The rating reflects LECON's strategic importance within the BOI Group and parental support.
- LECON Finance is implementing a N50 billion recapitalisation programme to expand lending to Nigerian businesses.
