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Insights•02 Jul 2025 6 min

Why Operating Leases Are Winning Nigeria's Construction Balance Sheet

Cash-flow discipline, faster mobilisation and off-balance-sheet efficiency: how modern developers are choosing to lease, not buy.

By Abdullahi Mustapha, FNIQS
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Construction margins in Nigeria remain under structural pressure. Capital that is locked into depreciating site infrastructure — scaffolding, formworks, containerised offices — rarely earns a return commensurate with its cost.

Operating leases invert that logic. The lessor owns and maintains the asset. The developer pays for use, not ownership, aligning outflows with project cash-flow curves.

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