Asset finance allows businesses to acquire the equipment they need, from industrial machinery and medical equipment to vehicle fleets, aircraft and vessels, while spreading the cost. Financiers rely on their ownership of, or security over, the asset, so the documentation and registration must be robust.
Legal framework
- The Equipment Leasing Act 2015, which provides for the registration of equipment leases and the protection of lessors' rights
- The Secured Transactions in Movable Assets Act 2017, which provides for the registration of security interests in movable assets at the National Collateral Registry
- The Cape Town Convention and Aircraft Protocol, which Nigeria has implemented for aircraft financing, together with civil aviation regulations
- Merchant shipping laws for the registration and mortgage of vessels
Transactions we advise on
- Finance leases and operating leases of equipment
- Vehicle and fleet financing
- Hire purchase arrangements
- Aircraft financing and leasing for airlines and lessors
- Marine and vessel financing
- Vendor finance programmes
- Sale and leaseback transactions
How we assist
- Structuring and documenting leases and financing agreements
- Registration of leases and security interests
- Tax and accounting considerations in coordination with advisers
- Insurance and maintenance obligations
- Import and customs issues for leased equipment
- Repossession and enforcement when lessees default
- Restructuring of lease portfolios
Repossession
When a lessee defaults, recovering the asset quickly is critical to the financier. We advise on contractual and statutory remedies, including court orders for recovery and, for aircraft, the remedies available under the Cape Town framework. See also debt recovery.
