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LECON Finance Company Limited, the leasing subsidiary of the Bank of Industry (BOI), has secured ‘B/Stable/B’ issuer credit ratings from S&P Global Ratings, as it moves to strengthen its finances and expand lending to Nigerian businesses.
The ratings, covering the company’s long- and short-term creditworthiness, reflect its strategic importance within the BOI Group and expectations that its parent company will continue providing support when required.
In its September 15, 2026 rating action, S&P classified LECON Finance as a core subsidiary of BOI, stating that its ratings were aligned with those of the parent bank.
The agency said LECON’s ratings were expected to move in tandem with those of BOI, linking the leasing company’s credit profile to the financial strength and support of its parent.
The rating comes as LECON Finance implements a N50 billion recapitalisation programme designed to increase its capacity to provide asset-backed financing to businesses, particularly micro, small and medium-sized enterprises (MSMEs).
As part of the programme, BOI deposited N20 billion with LECON Finance in 2025, with plans to convert the funds into equity, subject to regulatory approval.
S&P said BOI also planned 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, said the rating demonstrated confidence in the company’s business direction and growth prospects.
She said: “With the support of our parent, our recapitalisation programme and the continued expansion of our finance leasing business, we remain focused on deepening access to productive assets for Nigerian businesses while building a stronger and more sustainable leasing business.”
LECON Finance provides operating lease solutions to BOI and finance leasing services to Nigerian clients seeking to acquire productive assets.
S&P reported that operating leases accounted for 57 per cent of LECON Finance’s total leases at the end of 2025. The company has also been expanding its finance lease portfolio among MSMEs.
The agency said LECON Finance remained closely aligned with BOI’s development mandate, although its assets represented approximately 0.5 per cent of the group’s total assets at year-end 2025.
It nevertheless expects the leasing company’s business to continue expanding, supported by increased finance leasing activities.
S&P projected that finance leases would grow faster than operating leases, helping to strengthen LECON Finance’s profitability. It also expects the company’s asset quality indicators to remain under control and profitability to improve further.
Ehi-Omoike said the company would continue leveraging its partnership with BOI and other stakeholders to expand access to productive assets across Nigeria.
She added that LECON Finance would maintain its focus on asset quality, disciplined risk management and sustainable growth.
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.
