C & I Leasing Projects Nigeria’s GDP Growth Trajectory

Emmanuel Olorunda-Otaru

C & I Leasing Plc, has said Nigeria’s Gross Domestic Product (GDP) is expected to reach $489.80 billion by the end of 2023, going by analyst’s global macro models and expectations.

In the long term, the company said Nigeria’s GDP is projected to trend around $508.41billion in 2024 and $525.70 billion in 2025.

These projections were given by the company’s GMD/CEO, Ugoji Lenin Ugoji, during a virtual presentation of the company’s “Facts Behind the Figures Q3 2023,” in Lagos.

He said the inflation rate in the country is expected to reach 28 per cent by the end of 2023 adding, “Inflation rate is projected to trend around 21 per cent in 2024 and 17 per cent in 2025 as oil production improves and the new government settles in.

According to him, the financial highlights Q3 2023 of the company were: “Gross earnings of N16.3 billion, up 9% y-o-y, driven by growth of our marine business, representing 69% of total gross earnings for the 9-month period; Net operating income of N8.5billion, up 10% y-o-y mainly driven by growth in marine business; Profit after tax of N414.1 million, up 12% y-o-y, was achieved through a combination of top line growth, cost reduction initiatives and optimal utilization of assets; Basic earnings per share of 42 kobo, up 221% y-o-y, due to higher earnings; Year-to-date growth in total assets by 25% to N72.1 billion, driven by assets being held in currencies other than local; Capital Adequacy Ratio increased 800 basis points to 35% on the back conversion of $10m convertible note.”

On the steps to take to overcome the ongoing FX crisis, he said the Central Bank of Nigeria (CBN) remains in the best position to advise the government.

He added that C & I Leasing had to increase its forex revenues and reduce forex loans to avoid asset mismatch, which gave the company good stability to withstand turbulence.

On his part, the company’s Group Head, Treasury, Babatunde Oguntunrin, said the company would ensure an optimal equity, short and long term capital mix that will maximize all stakeholders’ return.

He said the company plans a N50billion Commercial Paper Issuance, with most of the funding targeted at asset acquisition.

According to C & I Leasing’s Chief Finance Officer, Okey Nnake, the company had gross earnings of N16.3bn, up nine per cent y-o-y, driven by growth of its marine business, representing 69 per cent of total gross earnings for the nine-month period.