The Federal Government has introduced a new leasing framework to replace exploitative hire-purchase systems that have long burdened motorcycle and tricycle operators across Nigeria. The initiative, unveiled through the Equipment Leasing Registration Authority (ELRA), is a collaborative effort with Century Information Systems Ltd. and the National Commercial Tricycle and Motorcycle Owners and Riders Association of Nigeria (NATOMORAS).
According to ELRA, the programme offers a structured financing alternative designed to ease access to vehicles while reducing financial strain on operators. The agency emphasized that the model addresses challenges posed by high upfront costs and rigid repayment terms, which have historically limited riders’ opportunities.
Donald Wokoma, Registrar and Chief Executive Officer of ELRA, described the partnership as a significant step toward financial inclusion and economic empowerment within the informal transport sector. He explained that leasing arrangements would eliminate heavy initial payments, introduce flexible repayment schedules, and allow operators to preserve capital. This, he noted, would improve productivity, increase daily earnings, and strengthen both individual livelihoods and the national economy.
Wokoma added that the scheme would also enhance efficiency by providing access to newer, better-maintained vehicles. Reduced breakdowns, he said, would minimize losses and improve service delivery across the sector.
Abdul Balarabe, Managing Director of Century Information Systems Ltd., highlighted the role of technology in the programme. He stated that advanced tracking systems would be deployed to monitor leased assets, curb theft, and support recovery efforts. Balarabe further explained that the company would continue to integrate trade associations, cooperatives, and other stakeholders into the leasing ecosystem, thereby expanding access to structured financing and asset acquisition. He encouraged interested organisations to begin the onboarding process.
Usman Gwoza, National President of NATOMORAS, welcomed the initiative, describing it as overdue relief for members who have struggled under exploitative financing conditions. He assured that the association would mobilise its members nationwide to participate, stressing that the model would promote dignity, stability, and financial independence among riders.
The government’s move aligns with broader efforts to deepen financial inclusion and formalise large segments of the informal economy. The transport sector, which employs millions of Nigerians, has long relied on informal hire-purchase arrangements. These systems are often criticised for high interest rates, opaque terms, and the risk of repossession after minor defaults. Such conditions have prevented operators from building equity, expanding businesses, or achieving long-term financial stability.
By introducing a regulated leasing model, the Federal Government aims to correct these imbalances. The initiative is expected to create a fairer financing environment, reduce exploitation, and provide operators with sustainable pathways to ownership and growth.
In summary, the new leasing framework represents a strategic intervention to modernise the informal transport sector. It combines financial restructuring with technological safeguards, while fostering collaboration among government agencies, private firms, and trade associations. The programme is positioned not only to ease the burdens of individual operators but also to strengthen the wider economy by formalising practices in a sector critical to daily mobility across Nigeria.
