Federal Government Launches Structured Leasing Model to Replace Exploitative Hire Purchase for Transporters

The Nigerian government introduces a structured leasing model with tracking technology to end exploitative hire-purchase for transport operators.

By: AXL Media

Published: Apr 9, 2026, 7:17 AM EDT

Source: Information for this report was sourced from Peoples Gazette

New Partnership Targets Financial Empowerment for Riders

In a strategic move to reform Nigeria’s informal transport sector, the Federal Government has announced a partnership with Century Information Systems and the National Commercial Tricycle and Motorcycle Owners and Riders Association of Nigeria (NATOMORAS). The collaboration introduces a structured leasing model designed to dismantle long-standing, exploitative hire-purchase arrangements. According to Donald Wokoma, Registrar and CEO of the Equipment Leasing Registration Authority (ELRA), the initiative is a significant step toward integrating transport operators into the formal economy through enhanced financial inclusion and asset ownership.

Eliminating Barriers to Asset Ownership

The primary objective of the new model is to ease the burden of heavy upfront payments and rigid repayment conditions that have historically trapped operators in cycles of debt. By offering flexible, structured plans, the initiative provides a clearer pathway to ownership for motorcycles and tricycles. Wokoma emphasized that this shift allows riders to preserve their capital, improve daily productivity, and increase their overall earnings. The model is expected to reduce losses associated with frequent breakdowns by ensuring riders have access to newer, better-maintained vehicles.

Technological Integration for Enhanced Security

A critical component of the structured leasing model is the integration of technology-driven monitoring solutions. Abdul Balarabe, Managing Director of CIS, stated that leased assets will be equipped with advanced tracking systems to improve accountability and safety. These systems are intended to curb the high rates of vehicle theft in the sector and assist in rapid asset recovery. Furthermore, CIS plans to expand the ecosystem by onboarding more trade associations and cooperatives to widen the reach of structured financing opportunities.