The Federal Government has unveiled a new leasing model aimed at replacing what it described as exploitative hire purchase arrangements for motorcycle and tricycle operators across the country.
The initiative, introduced through the Equipment Leasing Registration Authority (ELRA) in partnership with Century Information Systems Ltd. and the National Commercial Tricycle and Motorcycle Owners and Riders Association of Nigeria, is designed to improve access to vehicles while easing financial burdens on operators.
In a statement issued in Abuja on Thursday by the Head of Media and Corporate Communication of ELRA, Adebola Sunday, the agency said the model would provide a structured alternative to existing financing systems that have long disadvantaged riders.
Sunday quoted the Registrar and Chief Executive Officer of ELRA, Donald Wokoma, as describing the partnership as a major step toward promoting financial inclusion and economic empowerment within the informal transport sector.
Wokoma explained that the initiative seeks to address the challenges posed by high upfront costs and rigid repayment conditions that have limited access to motorcycles and tricycles for many operators.
“Leasing opens the door to economic participation for many who were previously excluded. By removing heavy upfront payment requirements and introducing structured repayment plans, operators can preserve capital, improve productivity, and increase daily earnings. It is a model that strengthens both individual livelihoods and the national economy,” he said.
He added that access to newer and better-maintained vehicles would help reduce breakdown-related losses and improve operational efficiency across the sector.
Also speaking, the Managing Director of Century Information Systems Ltd., Abdul Balarabe, said the programme would leverage technology-driven solutions to enhance safety and accountability.
According to the statement, Balarabe noted that advanced tracking systems would be deployed to monitor leased assets, curb theft, and improve recovery efforts.
Balarabe said the company would continue to onboard trade associations, cooperatives, and other stakeholders into the leasing ecosystem in order to expand access to structured financing and asset acquisition opportunities.
He urged interested organisations to engage with the company to begin the onboarding process.
In his remarks, the National President of NATOMORAS, Usman Gwoza, welcomed the development, describing it as long-awaited relief for members burdened by high-cost financing and unsustainable repayment terms.
Gwoza assured that the association would mobilise its members nationwide to participate in the scheme, adding that the model would promote dignity, stability, and financial independence among riders.
The move aligns with broader efforts by FG to deepen financial inclusion and formalise large segments of the informal economy, particularly the transport sector, which employs millions of Nigerians.
For years, motorcycle and tricycle operators have relied on informal and often criticised as exploitative hire-purchase arrangements, characterised by high interest rates, opaque terms, and the risk of asset repossession after minor defaults.
These conditions have limited operators’ ability to build equity, expand their businesses, or achieve long-term financial stability.
The PUNCH