Federal Government Launches Structured Leasing Deal to Revamp Nigeria's Transport Sector
The Federal Government has taken a significant step to strengthen Nigeria's transport sector by partnering with Century Information Systems Ltd (CIS) and the National Commercial Tricycle and Motorcycle Owners and Riders Association of Nigeria (NATOMORAS) to roll out an organized leasing framework. This initiative, announced in a statement from the Equipment Leasing Registration Authority (ELRA), aims to transform the informal transport landscape by providing more equitable financial solutions for operators nationwide.
Eliminating Exploitative Hire Purchase Arrangements
According to Adebola Sunday, Head of Media and Corporate Communication at ELRA, the new leasing model is specifically designed to eliminate exploitative hire purchase arrangements that have long burdened motorcycle and tricycle operators. Donald Wokoma, Registrar and Chief Executive Officer of ELRA, described the partnership as a crucial move toward financial inclusion and economic empowerment for transport workers.
Wokoma emphasized that the initiative seeks to improve access to motorcycles and tricycles by easing the heavy upfront costs and rigid repayment conditions that have historically hindered operators in Nigeria's informal transport sector. Under this framework, riders will benefit from flexible, structured leasing arrangements that enhance affordability and provide clearer pathways to asset ownership.
Enhancing Economic Participation and Efficiency
Leasing opens the door to economic participation for many who were previously excluded, Wokoma stated. By removing heavy upfront payment requirements and introducing structured repayment plans, operators are able to preserve capital, improve productivity, and increase daily earnings. It is a model that strengthens both individual livelihoods and the national economy.
He added that access to newer and well-maintained motorcycles and tricycles would reduce breakdown-related losses and improve operational efficiency across the sector, leading to a more reliable and sustainable transport network.
Leveraging Technology for Safety and Accountability
Dr. Abdul Balarabe, Managing Director of Century Information Systems Ltd., highlighted that the initiative will leverage technology-driven solutions, including advanced tracking systems, to enhance monitoring, safety, and accountability of leased assets. The integration of tracking technology will help curb theft, improve asset recovery, and enhance overall security for both riders and passengers, Balarabe explained.
He further noted that the company plans to onboard trade associations, cooperatives, and other stakeholders into the equipment leasing ecosystem to expand access to structured financing and asset acquisition opportunities. Interested organizations are encouraged to engage with CIS to begin the onboarding process and benefit from these innovative solutions.
Long-Awaited Relief for Transport Operators
Usman Gwoza, National President of NATOMORAS, welcomed the initiative, describing it as long-awaited relief for members who have faced high-cost financing and unsustainable repayment structures. Gwoza assured that the association would mobilize its countrywide membership to participate in the scheme, emphasizing that the model would promote dignity, stability, and financial independence among riders.
This structured leasing deal represents a forward-thinking approach to addressing the challenges in Nigeria's transport sector, combining financial innovation with technological advancements to create a more inclusive and efficient system for all stakeholders involved.
