FG to Unveil Equipment Leasing Registration Authority
By Patience Ikpeme
The Federal Government is set to unveil the Equipment Leasing Registration Authority (ELRA).
According to a press release issued by ELRA Executive Chairman, Engr. Saidu Njidda, the unveiling ceremony is scheduled to take place in Abuja, the Federal Capital Territory, and will be presided over by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
Upon its inauguration, ELRA will assume a pivotal role in advancing two key elements of the Tinubu Administration’s eight-point Agenda: ‘Access to Capital and Job Creation.’
The ELRA Board was inaugurated in May 2023 by Zainab Shamsuna Ahmed, the former Minister of Finance in compliance with Section 8 of the Equipment Leasing Act, 2015.
The board comprises 11 members, including Engr. Saidu Njidda, Executive Chairman, Barr. Bassey Imoh, Registrar/Secretary, and representatives from various government departments and the Equipment Leasing Association of Nigeria, which sponsored the bill.
Engr. Saidu Njidda emphasized the significant contribution of leasing to Nigeria’s GDP, citing over ₦14.3 trillion in the past decade. He highlighted the role of leasing in providing access to finance, particularly for Micro Small and Medium Scale Enterprises (MSMEs), and its impact on economic development, job creation, and wealth generation.
Despite its importance, leasing penetration in Nigeria remains very low, at less than 1 percent, compared to developed economies where it can reach up to 28 percent. Njidda stressed the need for government support to stabilize and grow the leasing industry.
He identified challenges, such as limited Direct Foreign Investment (DFI) and lessor’s reluctance, attributed to the absence of regulatory support and financial intervention.
With the ELRA Act in place, Engr. Njidda expressed confidence that fraudulent practices in the leasing sector will be identified and addressed effectively.
He emphasized that the Equipment Leasing Act presents a viable alternative to traditional loans and has the potential to contribute significantly to revenue generation and economic growth.
Njidda noted that equipment leasing is a crucial source of finance for capital assets, with a global market estimated at $1.5 trillion, contributing about 1.5 percent of Gross Domestic Product (GDP).
Furthermore, he highlighted the global significance of equipment leasing in capital formation and its presence in various African countries, including South Africa, Morocco, and Nigeria, ranking among the top 50 leasing nations worldwide, with other African nations also playing important roles.”
