Follow Us on Google
From Fred Ezeh, Abuja
The Equipment Leasing Registration Authority (ELRA) and the National Agricultural Development Fund (NADF) have joined forces to expand farmers’ access to modern agricultural equipment, in a move aimed at boosting food production and strengthening food security across Nigeria.
The two agencies signed a Memorandum of Understanding (MoU) in Abuja to deploy structured equipment leasing arrangements that will enable farmers, cooperatives and agribusinesses to acquire critical farming machinery without the heavy financial burden of outright purchase.
The agreement was signed by the Registrar and Chief Executive Officer of ELRA, Donald Wokoma, and the Executive Secretary and Chief Executive Officer of NADF, Mohammed Ibrahim, respectively.
According to a statement issued by ELRA’s Head of Media and Corporate Communication, Adebola Brookslyn Sunday, the partnership is designed to unlock access to tractors, harvesters, irrigation systems, processing equipment and other agricultural assets through affordable leasing models.
Speaking on the initiative, Wokoma said the collaboration provides a framework for addressing one of the major challenges confronting the agricultural sector which is the limited access to mechanised farming equipment due to financing constraints.
He explained that both agencies would develop and implement a range of leasing options, including finance leases, operating leases, lease-to-own arrangements and other structures permitted under the Equipment Leasing Act.
Other News
“The initiative is expected to ease financing barriers that have hindered farmers from acquiring modern equipment, while also encouraging private sector participation in agricultural leasing and equipment financing,” he said.
Under the arrangement, ELRA will oversee the registration of lease agreements, maintain records of agricultural equipment under leasing arrangements, support regulatory compliance and help design leasing models tailored to the unique realities of the agricultural sector.
NADF, on its part, will provide advisory services and facilitate capacity-building programmes to enhance the effective operation and management of agricultural equipment.
Wokoma noted that the partnership would also bring together financial institutions, equipment manufacturers, leasing companies, development partners and state governments to support the implementation of agricultural mechanisation projects nationwide.
He expressed confidence that the collaboration would promote sustainable mechanisation, improve productivity across the agricultural value chain and contribute significantly to Nigeria’s food security agenda.
The Memorandum of Understanding will remain in force for an initial period of four years, with the option of renewal upon mutual agreement by both parties.
