LECON Finance receives B ratings with stable outlook — Premium Times Nigeria

In Nigeria, leasing company LECON Finance Company Limited, a subsidiary of the Bank of Industry, received long-term and short-term issuer credit ratings of B with a stable outlook from S&P Global Ratings. As Premium Times Nigeria reports, the rating agency considers LECON Finance a key subsidiary of BOI, so its ratings are aligned with those of its parent company.

Support from the Bank of Industry

S&P expects LECON Finance's ratings to change in tandem with those of the Bank of Industry. The stable outlook reflects the agency's expectation that the company will remain key to BOI and will receive support from its parent company if needed.

According to S&P, operating leases accounted for 57% of all LECON Finance leasing operations as of the end of 2025. The company was also expanding its financial leasing portfolio for Nigeria's micro, small and medium-sized enterprises seeking to acquire productive assets.

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Recapitalization program

LECON Finance accounted for approximately 0.5% of BOI group's total assets at the end of 2025, but S&P expects its operations to expand further. In 2025, BOI placed a deposit of 20 billion Nigerian naira with LECON Finance, with plans to convert the funds into capital after regulatory approval. This is part of a 50 billion naira recapitalization program.

The agency also noted that BOI plans to use its ties with other development finance institutions to help LECON Finance obtain cheaper funding. S&P forecasts that financial leasing will grow faster than operating leasing, supporting the company's profitability, while asset quality indicators will remain acceptable.