The Equipment Leasing Registration Authority and the National Agricultural Development Fund have signed a Memorandum of Understanding aimed at expanding access to agricultural machinery through structured leasing arrangements as part of efforts to strengthen food security and boost agricultural productivity across Nigeria.
The agreement was signed in Abuja by the Registrar and Chief Executive Officer of the Equipment Leasing Registration Authority, Donald Wokoma, and the Executive Secretary and Chief Executive Officer of the National Agricultural Development Fund, Mohammed Ibrahim.
The partnership is expected to improve access to tractors, harvesters, irrigation systems, processing equipment and other agricultural assets for farmers, cooperatives and agribusiness operators through affordable and flexible leasing models.
Speaking on the initiative, Wokoma said the collaboration establishes a framework for both agencies to expand access to agricultural machinery through various leasing structures designed to address financing constraints facing farmers and agricultural enterprises.
He explained that the programme would support the development and implementation of finance leases, operating leases, lease-to-own arrangements and other leasing models permitted under the Equipment Leasing Act.
According to him, the initiative is intended to reduce the barriers preventing farmers from acquiring mechanised equipment while encouraging greater private-sector participation 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, help in structuring tailor-made lease models that will take due cognisance of the nature of agriculture, and support compliance with leasing regulations.
“NADF will provide advisory support and facilitate capacity-building programmes related to agricultural equipment operations,” he said.
Wokoma noted that the partnership would bring together financial institutions, equipment manufacturers, leasing firms, development partners and state governments to support the implementation of agricultural mechanisation initiatives nationwide.
He said the collaboration is expected to strengthen sustainable mechanisation systems, improve agricultural productivity and contribute to enhanced food security outcomes across the country.
The registrar added that the Memorandum of Understanding would remain in force for an initial period of four years and may be renewed by mutual agreement.
Nigeria’s agricultural sector continues to face significant mechanisation challenges, with many smallholder farmers lacking access to affordable tractors, harvesters, irrigation systems and other modern farming equipment. This has contributed to low productivity levels despite the sector’s critical role in food production, employment and economic growth.
In recent years, both government and private-sector stakeholders have increasingly promoted innovative financing models, including leasing and shared-equipment services, as practical solutions for improving access to mechanised farming tools. The ELRA-NADF partnership is expected to further accelerate these efforts by creating a structured framework that enables farmers and agribusinesses to access essential equipment without the burden of large upfront capital costs.
The initiative forms part of broader efforts to modernise Nigeria’s agricultural sector, enhance efficiency in food production and support the country’s drive toward greater food security and agricultural sustainability.
