Experts in the entrepreneurship landscape have urged operators of micro, small, and medium enterprises (MSMEs) in Nigeria’s recycling value chain to tap financing options in equipment leasing to scale their businesses.
The experts also called on the entrepreneurs to see equipment leasing as an innovative means of accessing advanced and latest machinery and tech to help their businesses stay competitive.
This was the key message from experts at the awareness consultations and networking event organised by the Lagos State Ministry of Environment and Lagos State Waste Management Agency (LAWMA), in collaboration with the Equipment Leasing Association of Nigeria (ELAN) and the Pro-Poor Growth and Promotion of Equipment in Nigeria Programme (SEDIN) – a programme by the German Development Agency (GIZ).
Sina Uti-Waziri, head of the component of local economic development, GIZ-SEDIN, noted that MSMEs face challenges in accessing finance that is crucial for their growth and sustainability.
According to her, equipment leasing is an innovative tool to finance MSMEs, noting that limited awareness has slowed its adoption.
“Equipment leasing is a financial product that allows businesses to rent equipment for a period of time as opposed to purchasing it outrightly and not incurring the significant cost associated with procurement,” she said.
“This means that anyone can access the equipment they need to operate their businesses without incurring significant costs,” she added.
She noted that it also provides businesses with access to the latest and most advanced equipment and machines which can help them stay competitive, adding that it also allows them to maintain their cash flows.
Speaking also, Ibrahim Odumboni, managing director and chief executive of LAWMA, said Lagos with a population of over 22 million people consumes five million plastics generating products daily with only 10 percent plastic waste recovered.
Odumboni, who was represented by Akinbulo Ayobami, head of the recycling central region at LAWMA, said inadequate equipment and machinery for collection after recovery remains a big challenge for operators in the recycling business.
He urged MSMEs to leverage opportunities provided by equipment leasing to access equipment and machinery for collection and value addition.
In her opening remarks, Elizabeth Ngozi Ehigiamusoe, chairman of ELAN, said enormous waste is generated in Lagos and the entire nation, which can be converted to wealth, as being done in the developed climes.
According to her, the 870,000 tonnes of plastic waste generated annually in Lagos presents both a threat and an opportunity for operators in the recycling business.
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Ehigiamusoe who was represented by Tunde Netufo, vice chairman of ELAN, noted that the country’s recycling industry estimated at $ 2 billion is struggling as a result of the menace of indiscriminate disposal of waste, poor orientation, and capacity to effectively convert this liability to a viable economic opportunity.
This is where equipment leasing comes in to provide the necessary productive assets to strengthen the capacity of operators in this industry, she said, adding that leasing can be brought to bear in this regard, as it facilitates easy and convenient access to the much-needed assets for productive ventures.
Speaking on the objective of the event, Markus Wauschkuhn, head of programme, GIZ-SEDIN said the event is aimed at raising leasing awareness among government agencies responsible for the development and financing of MSMEs and other stakeholders within and outside the plastic recycling ecosystem in Lagos.
“The limited awareness and knowledge of leasing to MSMEs have slowed the development of the industry, as it should focus mainly on assets that are suitable for MSMEs and on the general approach to managing all aspects of leasing,” he said.
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