The Federal Government is set to formally unveil the Equipment Leasing Registration Authority (ELRA) today 7th November, in Abuja, the Federal Capital Territory.
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 8-point Agenda of the Tinubu Administration- ‘Access to Capital and Job Creation “ .
It would be recalled that the ELRA Board was inaugurated in May 2023 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.
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).
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Engr. Njidda also notes that Equipment Leasing as an alternative and significant source of finance to loans has been immensely contributing to capital formation in the global Economy with its wide usage in many countries for the acquisition of capital assets.
He highlights that the major players in the Leasing industry in Africa include South Africa, Morocco, and Nigeria which are ranked amongst the top 50 Leasing Countries in the world with Ghana, Rwanda, Egypt, Kenya, Tunisia, and Angola, playing significant roles.
The ELRA boss further observed that in Nigeria, 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).
He, however, listed the major challenges of lease penetration as the poor inflow of Direct Foreign Investment (DFI) in the lease industry, and lessor’s apathy to some categories 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).
Engr. Njidda expressed optimism that with the passage of the ELRA Act and the full takeoff of the Authority, fraudulent and unscrupulous practices of transacting parties including the manufacturer will be identified and handled accordingly.
