- The Executive Chairman of the Board of ELRA observed that the implementation of the Equipment Leasing Act, a viable alternative to loan heralds a new are of enhanced revenue generation
The Federal Government of Nigeria is set to formally unveil the Equipment Leasing Registration Authority (ELRA), on Tuesday 7th November 2023 in Abuja, the Federal Capital Territory.
According to a press statement signed by ELRA Executive Chairman, Engr. Saidu Njidda, the unveiling ceremony which is to be performed by Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy would enable the Authority to play the role of a key driver and facilitator of two of the 8-point Agenda of the Tinubu Administration; “Access to Capital and Job Creation”.
It would be recalled that the ELRA Board was inaugurated in May 2022 by Zainab Shamsuna Ahmed, the 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 Engr. Saidu Njidda, Executive Chairman, Barr. 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.
In the Statement, the Executive Chairman of the Board of ELRA observed that the implementation of the Equipment Leasing Act, a viable alternative to loan heralds a new are of enhanced revenue generation given that 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).
Engr. Njidda also notes that 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.
“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”.
He stressed that despite the importance of leasing as a financing option to Nigeria’s industry sector players and the Economy, the penetration rate in Nigeria is still very low which currently stands at less than 1percent when compared to the potential of the Nigeria economy, and in other developed economies like Europe and America where the penetration is as high as 28 percent.