Federal Government Launches Leasing Scheme for Okada and Tricycle Riders to Boost Ownership
The Federal Government of Nigeria has officially launched a structured leasing model specifically designed for motorcycle and tricycle operators across the nation. This initiative, announced on April 13, 2026, is a collaborative effort involving the Equipment Leasing Registration Authority (ELRA), Century Information Systems Ltd (CIS), and the National Commercial Tricycle and Motorcycle Owners and Riders Association of Nigeria (NATOMORAS).
Addressing Exploitative Financing and Promoting Inclusion
According to a statement released by Adebola Sunday, Head of Media and Corporate Communication at ELRA, the primary objective of this scheme is to tackle the longstanding issue of exploitative hire purchase arrangements that have plagued operators in the informal transport sector. The initiative is strategically crafted to enhance access to financing, thereby fostering economic empowerment and promoting greater financial inclusion among riders nationwide.
Donald Wokoma, the Registrar and Chief Executive Officer of ELRA, emphasized that this collaboration represents a significant step forward in supporting Nigeria's informal transport economy. He explained that the traditional barriers of high upfront costs and rigid repayment terms have historically prevented many operators from achieving vehicle ownership. "Leasing opens the door to economic participation for many who were previously excluded," Wokoma stated, highlighting the model's potential to transform livelihoods.
Flexible Repayment and Pathway to Ownership
The newly introduced leasing framework offers riders several key benefits:
- Flexible repayment plans that allow operators to preserve capital and manage cash flow more effectively.
- A clearer and more accessible pathway to full asset ownership, moving away from perpetual rental or hire-purchase agreements.
- Access to newer, well-maintained vehicles, which is expected to reduce frequent breakdowns and minimize income losses due to operational downtime.
Wokoma further noted that by easing the financial burden, the scheme aims to improve daily productivity and increase earnings for riders, thereby contributing to broader economic stability within the sector.
Integration of Technology for Safety and Monitoring
In a move to modernize the leasing process, the programme will incorporate advanced technology-driven solutions. Abdul Balarabe, Managing Director of CIS, detailed that these solutions include sophisticated tracking systems installed on the leased motorcycles and tricycles.
"The tracking feature will help monitor leased assets, improve security, and reduce cases of theft," Balarabe explained. This technological integration is designed not only to protect the assets but also to enhance overall safety for operators and the public. CIS plans to collaborate with various trade associations, cooperatives, and stakeholders to ensure widespread adoption and accessibility of the leasing system.
Widespread Support from Operators' Association
The initiative has been warmly welcomed by the riders' representative body. Alhaji Usman Gwoza, National President of NATOMORAS, described the scheme as a timely intervention that addresses the costly and often unfair financing options previously available to members. He committed to mobilizing association members across all states to participate actively in the programme, expressing optimism that it will significantly improve financial independence and stability for operators.
This leasing scheme aligns with broader governmental efforts to support micro-entrepreneurs, as seen in other programmes like MarketMoni and TraderMoni, which offer zero-interest loans to market women, artisans, and small-scale traders. The Federal Government's multifaceted approach underscores a commitment to fostering sustainable economic growth and empowerment at the grassroots level, particularly within Nigeria's vital informal economy.
