FG Launches New Leasing Model for Riders in Nigeria

The Federal Government of Nigeria unveiled a new leasing model aimed at replacing exploitative hire-purchase arrangements for motorcycle and tricycle operators across the country. This initiative, announced in Abuja on Thursday, involves a partnership with Century Information Systems Ltd and the National Commercial Tricycle and Motorcycle Owners and Riders Association of Nigeria.

The model is designed to improve access to vehicles while alleviating the financial burden on operators. Elra Adebola, head of media and corporate communications at Elra, stated that the model provides a structured alternative to existing financing systems that have long disadvantaged riders.

Donald Wokoma, the registrar and chief executive officer of Elra, described the partnership as a significant step towards promoting financial inclusion and empowering the informal transport sector. The leasing model aims to address challenges such as high upfront costs and rigid repayment conditions, facilitating economic participation for previously excluded individuals.

The initiative also includes a technology-driven solution to enhance safety and curb theft.