FG Integrates Leasing into Nigeria’s Public Procurement Framework

The Federal Government of Nigeria has taken a significant step forward in reforming public procurement processes by integrating equipment leasing into the national procurement framework. This milestone was achieved through a historic Memorandum of Understanding (MoU) signed between the Equipment Leasing Registration Authority (ELRA) and the Bureau of Public Procurement (BPP). The development signals a strategic collaboration aimed at fostering transparency, efficiency, and fiscal prudence in government operations across the country.

Announcing the agreement in Abuja, Adebola Brookslyn, Head of Media and Corporate Communication at ELRA, highlighted the transformative potential of the partnership. ELRA’s Registrar and Chief Executive Officer, Donald Wokoma, described the MoU as “a new chapter in Nigeria’s public procurement framework” that underscores a commitment to promoting accountability while easing fiscal pressures on government budgets.

The MoU outlines a comprehensive collaboration, under which ELRA and BPP will jointly develop clear policy guidelines and standardized documentation specifically tailored for lease-based procurement transactions. A key feature of the partnership includes building the capacity of procurement officers in Ministries, Departments, and Agencies (MDAs) to effectively incorporate leasing into their procurement workflows. Supporting enhanced accountability, ELRA’s registration system will be fully integrated into the public procurement process.

The initial phase of the leasing integration will pilot projects across critical sectors such as health, education, transportation, agriculture, and information and communication technology (ICT), reflecting the government’s strategic priority areas.

Wokoma expressed his appreciation to the Director-General of BPP, Dr. Adebowale Adedokun, and his team for their visionary cooperation. He reaffirmed ELRA’s resolve to ensure that every lease transaction under this partnership delivers measurable value to the nation’s development agenda. The collaboration is also poised to improve asset management and service delivery efficiencies, aligning with the government’s Renewed Hope Agenda and broader economic diversification and sustainable growth objectives.

Dr. Adebowale Adedokun commended ELRA for its leadership in initiating the collaboration and reiterated BPP’s dedication to establishing a procurement framework that adheres to global best practices. He emphasized that leasing serves as a viable alternative financing mechanism, enabling enhanced service delivery while safeguarding public resources. The MoU guarantees that leasing transactions within the public sector will not only be transparent but also deliver tangible value for money.

ADVERTISEMENT

Furthermore, the partnership is set to strengthen institutional capacities within MDAs and bolster accountability in public expenditure management, particularly in regulatory compliance. A critical regulatory condition set forth by BPP mandates that all entities engaged in leasing must be duly registered with ELRA. The BPP will enforce strict compliance measures, withholding the issuance of Certificates of No Objection where registration requirements are not met.

This integration marks a harmonization of mandates between the Equipment Leasing Act of 2015 and the Public Procurement Act. ELRA’s authority to regulate and register leasing transactions complements BPP’s mandate to ensure value-for-money and competitiveness in government procurements. Together, the agencies have established a unified and transparent process for lease-related procurements, marking a significant milestone in Nigeria’s journey toward efficient, accountable, and sustainable public procurement practices.

The Federal Government’s reform reinforces its commitment to fiscal discipline, effective governance, and boosting investor confidence through robust regulatory oversight in public sector leasing operations.