The S&P Global Ratings has assigned ‘B’ long-term and ‘B’ short-term issuer credit ratings, with a Stable Outlook, to LECON Finance Company Ltd., a subsidiary of the Bank of Industry (BOI).
The rating, dated Sept. 15, was disclosed in a statement issued by BOI on Monday, which described LECON Finance as a core subsidiary, noting that its ratings are aligned with its parent due to its strategic importance and expected continued support.
S&P said that it expected LECON Finance’s ratings to move in line with those BOI, given the leasing firm’s strategic role in the group and anticipated continued parental support.
It said that BOI deposited ₦20 billion with LECON Finance in 2025, with plans to convert the funds into equity, subject to regulatory approval.
“The deposit forms part of a broader ₦50 billion recapitalisation programme aimed at strengthening the company’s capacity to expand its business.”
S&P also noted BOI’s plans to leverage relationships with other development finance institutions to help LECON Finance mobilise cheaper funding.
It said LECON Finance provides operating lease solutions to BOI and finance leasing services to Nigerian clients, including micro, small and medium-sized enterprises (MSMEs) seeking productive assets.
According to S&P, operating leases accounted for 57 per cent of the company’s total leases at the end of 2025.
The agency noted that while LECON Finance accounted for about 0.5 per cent of BOI Group’s total assets at year-end 2025, it expects the business to sustain its growth trajectory.
Mrs Ebehiriere Ehi-Omoike, Managing Director and Chief Executive Officer of LECON Finance, said the rating recognised the company’s strategic importance within the BOI Group.
She said the company would leverage its partnership with BOI and other stakeholders to expand access to productive assets, particularly for MSMEs, while maintaining strong asset quality and disciplined risk management.
“S&P expects finance leases to grow faster than operating leases, further strengthening profitability.”
According to her, the agency also projects that the company’s asset quality indicators will remain in check and profitability will continue to improve.
The Stable Outlook reflects S&P’s expectation that LECON Finance will remain a core subsidiary of BOI and receive support when needed.
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