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, Mr Donald Wokoma, and the Executive Secretary of NADF, Mr Mohammed Ibrahim was aimed at supporting Nigeria’s food security objectives.
This is contained in a statement issued by ELRA’s Head of Media and Corporate Communication, Mr Adebola Sunday, and made available to newsmen on Wednesday.
Sunday quoted Wokoma to have said 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.
This, he said, includes finance leases, operating leases, lease-to-own arrangements and other leasing structures permitted under the Equipment Leasing Act.
Wokoma said the initiative was designed to address financing challenges limiting access to mechanized farming equipment, while encouraging private sector investment in agricultural leasing and equipment financing.
”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,” he said.
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 mechanization projects.
According to him, the partnership is expected to strengthen sustainable mechanization models, improve agricultural productivity and enhance food security outcomes across the country.
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)
