The Equipment Leasing Registration Authority (ELRA) and the National Agricultural Development Fund (NADF) have signed a Memorandum of Understanding (MoU) to expand farmers’ access to agricultural machinery through structured leasing arrangements aimed at enhancing food production and security in Nigeria.
The agreement was signed in Abuja on Tuesday by ELRA Registrar and Chief Executive Officer, Donald Wokoma, and NADF Executive Secretary and Chief Executive Officer, Mohammed Ibrahim.
According to a statement issued by ELRA’s Head of Media and Corporate Communication, Adebola Sunday, the partnership is expected to improve access to tractors, harvesters, irrigation systems, processing equipment and other critical agricultural assets for farmers, cooperatives and agribusiness operators.
Speaking on the initiative, Wokoma said the collaboration would provide a framework for affordable access to agricultural equipment through a range of leasing models tailored to the needs of the sector.
He explained that the programme would support the deployment of finance leases, operating leases, lease-to-own arrangements and other leasing structures permitted under the Equipment Leasing Act.
According to him, the initiative is designed to address financing challenges that often prevent farmers from acquiring modern equipment, while also encouraging private-sector investment in agricultural mechanisation.
Under the agreement, ELRA will oversee the registration of lease agreements, maintain records of leased agricultural assets, support the development of sector-specific leasing models and ensure compliance with relevant regulations.
NADF, on its part, will provide advisory services and facilitate capacity-building programmes to improve the effective use and management of agricultural equipment.
Wokoma noted that the partnership is expected to attract the participation of financial institutions, equipment manufacturers, leasing companies, development partners and state governments in driving mechanisation across the agricultural value chain.
He added that the collaboration would contribute to increased productivity, improved efficiency and stronger food security outcomes nationwide.
The agreement is expected to run for an initial period of four years, with an option for renewal upon mutual consent by both parties.
Nigeria’s agricultural sector continues to face significant mechanisation challenges, particularly among smallholder farmers who often lack access to affordable machinery. Stakeholders have increasingly promoted leasing and shared-equipment models as practical solutions to improve access to modern farming tools, boost productivity and support sustainable agricultural growth.
