The Federal Government has introduced a new leasing model to support motorcycle and tricycle operators, aiming to replace exploitative hire purchase arrangements. The initiative, launched by the Equipment Leasing Registration Authority (ELRA) in partnership with Century Information Systems Ltd. and the National Commercial Tricycle and Motorcycle Owners and Riders Association of Nigeria (NATOMORAS), seeks to improve access to vehicles and ease financial burdens on operators. ¹
ELRA Registrar and CEO, Donald Wokoma, described the partnership as a significant step towards promoting financial inclusion and economic empowerment within the informal transport sector. The model addresses challenges posed by high upfront costs and rigid repayment conditions, allowing operators to preserve capital, improve productivity, and increase daily earnings.
Key benefits of the leasing model include:
- Structured Repayment Plans: Operators can access vehicles with manageable repayment terms.
- Improved Vehicle Maintenance: Access to newer and better-maintained vehicles reduces breakdown-related losses.
- Enhanced Safety and Accountability: Advanced tracking systems monitor leased assets, curbing theft and improving recovery efforts.
NATOMORAS National President, Usman Gwoza, welcomed the development, citing long-awaited relief for members burdened by high-cost financing. The association will mobilize its members to participate in the scheme, promoting dignity, stability, and financial independence among riders.
Would you like to know more about the eligibility criteria for this leasing model or how it compares to traditional financing options?