ELRA, NADF Sign MoU to Expand Agricultural Machinery Access

News in Brief:

—ELRA and NADF have signed an MoU to expand access to agricultural machinery through structured leasing arrangements.

—The agreement will allow farmers, cooperatives and agribusinesses to access equipment through leasing models.

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 for Nigerian farmers through structured leasing arrangements.

The agreement, signed in Abuja by the Registrar/Chief Executive Officer of ELRA, Mr Donald Wokoma, and the Executive Secretary of NADF, Mr Mohammed Ibrahim, will support Nigeria’s food security agenda.

According to a statement issued by ELRA’s Head of Media and Corporate Communication, Mr Adebola Sunday, the deal is designed to strengthen collaboration between both agencies and improve farmers’ access to essential equipment.

Easier Access to Farm Machinery

Speaking on the partnership, Wokoma said the framework would make it easier for farmers, cooperatives and agribusinesses to access tractors, harvesters, irrigation systems, processing equipment and other agricultural assets at more affordable rates through leasing. He said the collaboration would also support the development and rollout of different leasing models, including finance leases, operating leases, lease-to-own arrangements and other structures permitted under the Equipment Leasing Act.

Wokoma said the initiative was aimed at tackling one of the major obstacles facing agriculture in Nigeria: the high cost of financing mechanised equipment. He added that the framework was also expected to attract more private sector participation in agricultural leasing and equipment financing, especially at a time when the country is under pressure to improve productivity and reduce post-harvest losses.

Fine Print of Agreement

Under the agreement, ELRA will oversee the registration of lease agreements, maintain records of agricultural equipment under lease arrangements and support compliance with leasing regulations. The agency will also help design customised leasing models that reflect the realities of the agricultural sector, including the seasonal nature of farm operations and the varying needs of different value chains.

On its part, NADF will provide advisory support and help drive capacity-building programmes linked to agricultural equipment operations. The partnership is also expected to bring in financial institutions, equipment manufacturers, leasing companies, development partners and state governments to support the implementation of agricultural mechanisation projects across the country.

The ELRA boss said the collaboration would help promote sustainable mechanisation models, raise agricultural productivity and improve food security outcomes nationwide. He added that the MoU would remain in force for an initial four-year period, subject to renewal by mutual agreement.

Answer to Nigeria's Machinery Leasing Challenge

ELRA is a federal regulatory body created under the Equipment Leasing Act of 2015 to register equipment lease agreements and supervise leasing activities. The body, inaugurated in May 2023, is meant to promote transparency, accountability and growth in the leasing industry.

The agency is tied to the federal government’s broader effort to improve access to capital and create jobs, because leasing can help businesses obtain equipment without buying it outright, making it an important asset for the agriculture sector.

For Nigeria’s farmers, this deal could ease one of the long-standing bottlenecks in mechanised agriculture: access to modern equipment without the burden of outright purchase. If implemented effectively, the arrangement may help small and medium-scale operators scale production, improve efficiency and strengthen the broader agricultural value chain.