The Equipment Leasing Registration Authority (ELRA) and the Nigerian Agricultural Development Fund (NADF) have signed a Memorandum of Understanding (MoU) aimed at expanding farmers' access to agricultural machinery through structured leasing arrangements. This partnership is designed to support Nigeria's food security objectives and enhance agricultural productivity across the country.
Details of the Agreement
In a statement issued by the Head of Media and Corporate Communication of ELRA, Adebola Sunday, the agreement was signed in Abuja by the Registrar and Chief Executive Officer of ELRA, Donald Wokoma, and the Executive Secretary and Chief Executive Officer of NADF, Mohammed Ibrahim. The MoU provides a framework for collaboration between the two agencies to promote affordable access to tractors, harvesters, irrigation systems, processing equipment, and other agricultural assets for farmers, cooperatives, and agribusinesses.
Leasing Models and Implementation
According to Wokoma, under the partnership, ELRA and NADF will work together to develop and implement various agricultural equipment leasing models, including finance leases, operating leases, lease-to-own arrangements, and other leasing structures permitted under the Equipment Leasing Act. He stated that the initiative is intended to address financing challenges that limit access to mechanised farming equipment, while encouraging private sector investment in agricultural leasing and equipment financing.
“As part of the agreement, ELRA will oversee the registration of lease agreements, maintain records of agricultural equipment under lease arrangements, help in structuring tailor-made lease models that will take due cognisance of the nature of agriculture, and support compliance with leasing regulations. NADF will provide advisory support and facilitate capacity-building programmes related to agricultural equipment operations,” he explained.
Collaboration and Impact
Wokoma added that the collaboration is also expected to involve financial institutions, equipment manufacturers, leasing companies, development partners, and state governments in the implementation of agricultural mechanisation projects. He said the partnership would strengthen sustainable mechanisation models, improve agricultural productivity, and enhance food security outcomes across the country. The MoU will remain in force for an initial period of four years, subject to renewal by mutual agreement.
