Nigeria mandates ELRA certification for equipment leasing procurement

The Nigerian Federal Government has made the Equipment Leasing Registration Authority (ELRA) certificate a mandatory requirement for all public procurement processes involving the leasing, hiring, or provision of equipment. The directive, issued via a circular from the Secretary to the Government of the Federation, Senator George Akume, establishes the certificate as a compulsory eligibility criterion for any entity seeking to enter into leasing contracts with government agencies.

According to the Bureau of Public Procurement (BPP), all Ministries, Departments, and Agencies (MDAs) must incorporate ELRA registration as an additional criterion for bids. This requirement applies to prequalification exercises, financial bids, and combined procurement exercises. The BPP warned that no procurement approvals, contract awards, or executions will be recognized for transactions that fail to comply with this mandate.

The measure aims to standardize the leasing sector, tighten controls over public expenditure, and reduce risks associated with fraudulent contracts or substandard equipment in sectors such as construction, agriculture, mining, and transportation. While intended to formalize the industry, the requirement may present administrative challenges for smaller leasing firms.