The Federal Government has introduced a new leasing model to replace what it describes as exploitative hire-purchase arrangements for motorcycle and tricycle operators nationwide.
The initiative, unveiled through the Equipment Leasing Registration Authority in collaboration with Century Information Systems Ltd. and the National Commercial Tricycle and Motorcycle Owners and Riders Association of Nigeria, aims to improve access to vehicles while reducing the financial strain on operators.
In a statement issued in Abuja, ELRA’s Registrar and Chief Executive Officer, Donald Wokoma, described the programme as a significant step toward financial inclusion and economic empowerment in Nigeria’s informal transport sector. He explained that the model eliminates heavy upfront payments and introduces structured repayment plans, enabling riders to preserve capital and boost productivity.
According to Wokoma, access to newer and better-maintained motorcycles and tricycles will also reduce breakdowns and improve operational efficiency, ultimately increasing daily earnings for operators.
The Managing Director of Century Information Systems Ltd., Abdul Balarabe, noted that the scheme would incorporate technology-driven solutions to enhance safety and accountability. He said advanced tracking systems would be deployed to monitor leased vehicles, curb theft, and improve recovery processes.
Balarabe added that the company is working to onboard trade associations, cooperatives, and other stakeholders to expand access to structured financing and asset acquisition opportunities across the country.
Reacting to the development, the National President of NATOMORAS, Usman Gwoza, welcomed the initiative, describing it as long-awaited relief for riders burdened by high-cost financing and rigid repayment terms. He assured that the association would mobilise its members nationwide to participate in the programme.
The initiative aligns with broader government efforts to deepen financial inclusion and formalise Nigeria’s informal economy. For years, operators have depended on informal hire-purchase systems often criticised for high interest rates, unclear terms, and the risk of asset repossession after minor defaults.
By introducing a structured leasing framework, the government hopes to create a more sustainable and equitable financing model for millions of Nigerians working in the transport sector.
