ABSTRACT

Business in Nigeria have for sometime now showed a growing concern to optimally finance their operations. This could be evidenced by the ever increasing demand for bank loan by them. This mounting concerns must not be connected with the fact that adequate funds are prerequisite for efficient business operations since finance is at the core of any business undertaking. Consequently, leasing can serve as an alternative to bank loans. First this research study tries to explain what equipment leasing is all about while also stating the various types of lease. This, the researcher hopes will provide an overview of equipment leasing. Leasing enables a business acquire and make use of an asset without necessarily owing it. Borrowing to buy an asset or purchasing it will available funds could really impose heavy financial burden on the firm and so with leasing adequate working capital may be conserved. This research project has tried to study some accounting standards relating to equipment leasing and also calculations are done in some cases to make provisions in the accounting standards clearer. In the course of this research work, the researcher made use of both the primary and secondary source of data. The main primary source was the use of questionnaire while the secondary data consists of textbooks, magazines, newspapers and journals. From the result obtained from this research study, it is discovered that equipment leasing as an alternative finance option has been a source of development of many industries in Nigeria. It is also discovered that the nature of equipment and rate of frequency of leasing has made significant impact on industrial growth in Nigeria. This research study, apart from considering the problem and prospects of equipment leasing in Nigeria, also concludes by making some suggestions and recommendation based on the findings, which if adhered to, will enhance the progress of the leasing industry. This project is therefore a tool for further research and will be helpful to the leasing industry and the public as a whole.