From Uche Usim, Abuja
Barring unforeseen circumstances, the Federal Government will formally unveil the Equipment Leasing Registration
(ELRA) on Tuesday, November 7, in Abuja.
ELRA is a public private partnership arrangement, set up by the Equipment Leasing Act to, among other objectives, register lease agreements and lessors; determine eligibility of persons & requirements; register and investigate incidence of default: establish and maintain register of persons entitled to carry on business of leasing and undertake other activities to give effects to the Act and other functions conferred by the Act.
According to a press statement personally signed by ELRA Executive Chairman, Engr. Saidu Njidda, the unveiling ceremony which is to be performed by Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, would enable the Authority to play the role of a key driver and facilitator of two of the eight-point agenda of the Tinubu Administration- ‘access to capital and job creation’.
The ELRA boss further observed that in Nigeria, particularly over the last 10 years, leasing has contributed over ₦14.3 trillion to the country’s GDP and continues to be more relevant especially under the prevailing situation where access to finance is difficult, especially for Micro Small and Medium Scale Enterprise (MSMES).
“The whole essence of Leasing is to enhance the planning, improvement and development of any economy, by building and supporting productive ventures, through capital formation, generating employment and creating wealth”.
In the statement, the Executive Chairman of the Board of ELRA observed that the implementation of the Equipment Leasing Act, a viable alternative to loan heralds a new era of enhanced revenue generation given that the industry is capable of generating an estimated total volume of $1.5trillion globally accounting for 20% of total investment in equipment and contributing about 1.5% of Gross Domestic Product (GDP).
He listed the major challenges of lease penetration as the poor inflow of Direct Foreign Investment (DFI) in the lease industry, lessor’s apathy to some category of leasing among others which he attributed to the absence of Government support through regulatory environment and financial intervention in order to grow the sector and enhance its contribution to Nigeria (GDP).
ELRA Board was inaugurated in May 2022 by Zainab Shamsuna Ahmed, the former Minister of Finance, Budget and National Planning (HMFBNP) following the establishment of the authority which is in accordance with Section 8 of the Equipment Leasing Act, 2015.
The inaugurated board comprises 11 members including Engr. Saidu Njidda, Executive Chairman, Barr. Bassey Imoh, Registrar/Secretary, one representative each from the CBN, SMEDAN, NACCIMA, Federal Ministry of Finance, Federal Ministry of Justice, Federal Ministry of Trade and Investment, and three representatives from the Equipment Leasing Association of Nigeria, the umbrella body of lessors which sponsored the bill.
