Govt agencies partner on leasing scheme to boost farmers’ access to machinery

Two government agencies have signed a Memorandum of Understanding to expand farmers’ access to agricultural machinery through structured leasing arrangements, in a renewed push to strengthen Nigeria’s food security.

The Equipment Leasing Registration Authority and the National Agricultural Development Fund formalised the agreement on Tuesday in Abuja. The MoU was signed by ELRA’s Registrar/Chief Executive Officer, Donald Wokoma, and NADF’s Executive Secretary, Mohammed Ibrahim.

According to a statement issued on Wednesday, the partnership aims to improve access to tractors, harvesters, irrigation systems, processing equipment, and other farm assets for individual farmers, cooperatives, and agribusiness operators.

Wokoma explained that the collaboration provides a framework for both agencies to expand affordable access to agricultural equipment using different leasing structures, including finance leases, operating leases, and lease-to-own arrangements as permitted under the Equipment Leasing Act.

He noted that the initiative is designed to address financing constraints that limit farmers’ access to mechanised equipment, while also encouraging private sector participation in agricultural leasing and equipment financing.

Under the agreement, ELRA will oversee the registration of lease agreements, maintain records of equipment under lease, help structure tailor-made lease models that consider the nature of agriculture, and support compliance with leasing regulations. NADF, on its part, will provide advisory support and facilitate capacity-building programmes related to agricultural equipment operations.

Wokoma added that the partnership is expected to bring together financial institutions, equipment manufacturers, leasing firms, development partners, and state governments in implementing agricultural mechanisation initiatives. He said the MoU would remain in force for an initial period of four years, with the possibility of renewal.

The agriculture sector has long faced mechanisation gaps, with many smallholder farmers unable to afford basic machinery. While low productivity is also linked to input shortages, infrastructure deficits, and climate risks, recent government and private sector efforts have increasingly turned to leasing and shared‑equipment models to ease access to mechanised farming tools.