The Equipment Leasing Registration Authority (ELRA) and the National Agricultural Development Fund (NADF) have signed a memorandum of understanding (MoU) to expand access to agricultural machinery through structured leasing arrangements.

The agreement signed in Abuja by the Registrar/Chief Executive Officer of ELRA, Donald Wokoma, and the Executive Secretary of NADF, Mohammed Ibrahim, was aimed at supporting Nigeria’s food security objectives.

‎‎This is contained in a statement by ELRA’s Head of Media and Corporate Communication, Adebola Sunday, on Wednesday.

‎Mr Sunday quoted Mr Wokoma as saying that the partnership provided 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.

‎He said the partnership would also facilitate the development and implementation of various agricultural equipment leasing models.

He said this includes finance leases, operating leases, lease-to-own arrangements and other leasing structures permitted under the Equipment Leasing Act.

Mr ‎Wokoma said the initiative was designed to address financing challenges limiting access to mechanised farming equipment while encouraging private sector investment in agricultural leasing and equipment financing.

‎He said, “As part of the agreement, ELRA will oversee the registration of lease agreements, maintain records of agricultural equipment under lease arrangements, support compliance with leasing regulations and help structure tailor-made leasing models that take into account the peculiarities of the agricultural sector.

‎”NADF will provide advisory support and facilitate capacity-building programmes related to agricultural equipment operations. “

‎The ELRA boss said the collaboration would also involve financial institutions, equipment manufacturers, leasing companies, development partners and state governments in the implementation of agricultural mechanisation projects.

‎According to him, the partnership is expected to strengthen sustainable mechanisation models, improve agricultural productivity and enhance food security outcomes across the country.

‎Mr Wokoma added that the memorandum of understanding would remain in force for an initial period of four years and could be renewed by mutual agreement of both parties. ‎

(NAN)