Lease Calculator Nigeria — Monthly Payment & Buy vs Lease Comparison
Calculate monthly lease payments for any asset. Compare leasing vs buying with a loan. Shows total lease cost, residual value impact, and break-even analysis.
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Buy vs. Lease Comparison
| Factor | Lease | Buy (Loan) |
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Lease Payment Schedule (Yearly)
| Year | Annual Payments | Principal (Depreciation) | Finance Charge | Balance |
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Leasing vs Buying in Nigeria
Leasing typically offers lower monthly payments than buying, preserves working capital, and keeps assets off your balance sheet (for operating leases). This is particularly valuable for Nigerian SMEs that need equipment but have limited capital.
Buying makes more sense for long-term asset use where you build equity. With Nigerian interest rates at 22%+, the financing cost of either option is high — evaluate both carefully before deciding.
Frequently Asked Questions
What is a lease in Nigeria?
A lease is a financial arrangement where a lessor (leasing company or bank) purchases an asset and allows a lessee (business or individual) to use it for a fixed period in exchange for regular payments. At the end, you may have the option to purchase the asset at a residual value or return it. Leasing is popular in Nigeria for vehicles, equipment, and office machinery.
What is the difference between leasing and buying with a loan?
With a loan, you own the asset from day one (subject to lien). Monthly payments build equity. With a lease, you use the asset but the leasing company owns it. Lease payments are typically lower because you only pay for the depreciation during your use, not the full asset value. Leasing is better for assets you want to upgrade frequently.
What is residual value in a lease?
Residual value is the estimated value of the asset at the end of the lease term. A higher residual value means lower monthly payments (since you are paying for less depreciation). Typical residual values: cars after 3 years are 40–60% of original price; equipment after 5 years may be 10–30%.
Is lease financing available for Nigerian SMEs?
Yes. Several Nigerian leasing companies and banks offer equipment leasing: C&I Leasing, First City Leasing, Stanbic IBTC, FAAN-IATA-accredited lessors, and specialized equipment finance companies. The Equipment Leasing Association of Nigeria (ELAN) provides industry guidelines.
How does a Nigerian operating lease differ from a finance lease?
A finance lease transfers most risks/rewards to the lessee — it appears on the balance sheet and the lessee typically purchases the asset at end. An operating lease is like renting — the asset stays on the lessor's books, payments are operating expenses, and you return the asset at end. For tax purposes, operating lease payments are fully deductible.