The Equipment Leasing Registration Authority (ELRA) and the National Agricultural Development Fund (NADF) have signed a memorandum of understanding (MoU) aimed at expanding access to agricultural machinery through structured leasing arrangements and supporting Nigeria's food security objectives.
In a statement issued by the head, Media and Corporate Communication of ELRA, Adebola Brookslyn Sunday, the agreement was signed in Abuja by the registrar/chief executive officer of ELRA, Donald Wokoma, and the executive secretary/chief executive officer of NADF, Mohammed Ibrahim.
Sunday quoted the registrar/CEO of ELRA, Donald Wokoma who said the partnership provides 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.
According to him, under the partnership, ELRA and NADF will develop and implement various agricultural equipment leasing models, including finance leases, operating leases, lease-to-own arrangements and other leasing structures permitted under the Equipment Leasing Act.
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He said the initiative was intended to address financing challenges that limit access to mechanised 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, 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 added that the collaboration was also expected to involve financial institutions, equipment manufacturers, leasing companies, development partners and state governments in the implementation of agricultural mechanisation projects.
He also said the partnership would strengthen sustainable mechanisation models, improve agricultural productivity and enhance food security outcomes across the country.
He, therefore, said that the Memorandum of Understanding would remain in force for an initial period of four years, subject to renewal by mutual agreement.
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