By Ayodele Oni
The Federal Government is set to unveil the Equipment Leasing Registration Authority (ELRA), an organization which encourages Leasing to small and medium scale enterprises.
The official ceremony is expected to be performed on Tuesday in Abuja, by Mr. Wale Edu, Minister of Finance and Coordinating Minister of the Economy.
A statement signed by ELRA Chairman, Saidu Njidda, stated that the unveiling enables the Authority to play the role of a key driver and Facilitator of one of the 8-point Agenda of the Tinubu Administration, “bringing access to capital to Nigerians” through encouraging Leasing to small and medium scale enterprises.
The ELRA Board was inaugurated in May 2022 by Mrs. Zainab Shamsuna Ahmed, former Minister of Finance, Budget and National Planning, 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 Saidu Njidda, Executive Chairman, and Barrister 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.
The Statement by the Chairman of the Board observed that implementation of the Equipment Leasing Act, a viable alternative to loan heralds a new era of enhanced revenue generation.
“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).
“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.
“Major players in the Leasing industry in Africa include South Africa, Morocco and Nigeria who 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, 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.”
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