Aquila Leasing signs N2.3bn contract with NBC
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Monday , January 8 – 14 , 2018 Leasing
ver the years , successive governments in Nigeria have been mak- Oing frantic efforts to improve
the country ' s healthcare delivery system . The idea to encourage a healthy citizenry must have stemmed from the fact that , a sick free populace provides any country with the highest number of potential human capital , that could be readily drafted to meet peace and war time obligations of the country . This explains why any problem in this vital sector generates palpable fear and apprehension across the world . With the determination to ensure that the healthcare system is improved and sustained , government at all levels have continued to roll out different programmes to better the lot of the populace like free medical schemes , health for all by the year 2000 , scholarship scheme for post graduate medical students , tax and other import duty concessions on some medical equipment among numerous othhe Equipment Leasing Association of Nigeria ( ELAN ), has moved to Tfurther contribute to the
healthcare sector in Nigeria in line with its developmental role . The move is aimed at enhancing development and repositioning of the sector which is targeted at meeting the huge infrastructure and other challenges affecting the sector .
The commitment was recently expressed by the Association , during the signing of the memorandum of understanding between the Equipment Leasing Association of Nigeria ( ELAN ) and Swiss Biostadt Limited , a renowned healthcare equipment vendor and ELAN member . This partnership is intended to provide players in the healthcare sector with the needed equipment , for enhanced service delivery .
The Executive Secretary of the Association , Andrew Efurhievwe , stated that Nigeria has over the years , been faced with the challenges of providing efficient healthcare services to its people . The issue is not so much about shortage of personnel but the provision of necessary equipment and o t h e r i n f r a s t r u c t u r e t o enhance service delivery . The consequential effects of this
& Asset Finance ers .
“ regrettably , in spite of these studio-load of efforts , the issue of receiving good medical attention has continued to elude the ordinary citizenry to the extent that majority of the citizenry have completely lost faith in the sector . The ever increasing numbers of Nigerians seeking medical attention abroad because most private and government owned hospitals lack facilities attest to this fact .”
Over this years , Nigeria has not been able to grapple with the challenge of providing efficient healthcare services to its people . Numerous reasons have been adduced for this unwholesome development , ranging from inadequate capital to procure up to date medical equipment and poo remuneration of medical personnel etc .
Out of all the numerous problems bedeviling the development of this subsector , the issue of obsoinclude avoidable deaths due to wrong diagnosis and treatment as well as huge expenditure on medical treatment abroad .
The contemporary development in the sector where technology drives most activity , and efforts concentrated on capital investment in modern equipment to meet the i n c r e a s i n g d e m a n d o f healthcare services , has necessitated the increasing need and demand for efficient medical equipment , to facilitate effective diagnosis and treatm e n t . T h i s h a s f o r c e d healthcare providers to constantly match the pace of medical technology and offer optimal treatment and care despite budget constraints .
Considering the volume of funding required to facilitate substantial development , appropriate initiatives and funding mechanisms for addressing the problem must be sought . The Executive Secretary affirmed that “ Leasing is considered a major financing option that can be used to facilitate access to the much needed equipment , necessary to address the infrastructure challenges and improve service delivery in the sector .”
Essentially , Leasing can provide health care institutions with easy access to statelete / inadequate equipment has been a recurring one . According to statistics , it has continued to be a major cause of industrial unrest in the sector .
The big question remains , what needs to be done to halt this worsening trend ? The point must be made that innovations and substantial efforts are required to improve the
of-the-art medical equipment that would aid their daily operations , without waiting for the accumulation of enough capital budgets to proceed with the procurement of medical equipment .
The influential benefits of leasing to these institutions include , no collateral requirement ; more flexible payment options and occasionally no down payment required ; frees up capital for extra expenditure ; 100 % or more financing which include hardware , software , installation , maintenance , training , al of which can be encompassed in the lease contract .
For medical equipment vendors , leasing can be utilized as a sales aid mechanism . Reputable medical vendors across the globe have develo p e d v e n d o r l e a s i n g programmes through the establishment of specialized leasing companies or in partnership with other lessors .
He called on Government to embrace leasing as a major instrument for upgrading and maintaining health care facilities across the country , to facilitate Government ' s initiative of creating a healthy nation , while conserving and retaining scarce foreign exchange resources for economic development . efficiency and effectiveness of the health care system , particularly through the provision of necessary infrastructure to enhance service delivery .
Nigeria ' s case is worsened by the mere fact that we are not flowing with current technological dynamics of the industry . Globally , the health care sector is driven by technology and most efforts are concentrated on capital investment in modern equipment to improve productivity in order to meet the increasing demand of healthcare services . For instance , according to statistics , “ the healthcare expenditures of the United States were over $ 1.1 trillion or almost 14 % of the US GDP in 1996 alone .” A reasonable amount of this expenditure went to the procurement of medical and healthcare equipment .
Government appears to recognize this fact as recently demonstrated by the upgrades of facilities in some Teaching hospitals . However , the area of coverage in the health sector coupled with the velocity of innovations and high cost of medical equipment , are such that Government cannot handle alone . There is therefore the need for effective private sector participation in the provision of the much-needed infrastructure that would guarantee an efficient healthcare system in Nigeria .
A major financing tool that can be utilized to enhance
renowned ELAN member , Aquila Leasing
ALimited , last year signed a transportation service contract with Nigerian Bottling Company plc .
Aquila Leasing , a world class leasing firm that provides superior solutions through people , innovation and technology , has been in a
Life is a lease , God is the lessor
— Sarah Strohmeyor
Efficient healthcare delivery in Nigeria : The leasing option
2017 in Retrospect
• Onwuchekwa , Chairman , ELAN
Leasing industry targets Nigerian healthcare development
infrastructure development in the sector , is equipment leasing . Generally , leasing as an alternative financing option is increasingly gaining popularity . It offers greater operational , strategic and financial benefits than outright purchase . As is prevalent in other countries , leasing can represent a fundamental source of capital financing for healthcare providers in Nigeria . The conditions in the healthcare sector , such as steady growth , capital budget constraints and rapid technological changes , create opportunity for leasing to make inroads in numerous ways .
First , leasing is more flexible and convenient as it offers the healthcare practitioner the option of spreading the payment for the leased equipment over a reasonable period of time than making outright payment for the usually expensive equipment that medical practice requires .
Secondly , leasing medical equipment also helps the health care practitioner to hedge against obsolesce as it affords the practitioner the option of acquiring modern and state of the art equipment at all times .
As strategically important as this finance option is to the development of the healthcare sector , lack of awareness among lease practitioners , healthcare workers , government and other stakeholders has continued to be its bane .
Against this backdrop , we suggest that in order to show case the opportunities that are associated with healthcare leasing and the strategic importance of using the lease finance option in this vital sector of the economy , the Equipment Leasing Association of Nigeria should in conjunction with other stakeholders , embark on an elaborate awareness creation campaign to educate the healthcares practitioners and other stakeholders on this unique financing model and how it would tackle the infrastructure challenges in the health care sector .
Aquila Leasing signs N2.3bn contract with NBC
business relationship with NBC , providing fleet management services to them and other corporates .
This feat has revealed the confidence that NBC has in the firm as well as the untapped business opportunities embedded in the Nigerian leasing industry .