By Joseph Erunke, Abuja

The Federal Government has launched a bold initiative to dismantle the long-criticised exploitative hire purchase system in Nigeria’s informal transport sector, introducing a structured leasing model aimed at empowering motorcycle and tricycle operators nationwide.

The initiative, driven by the Equipment Leasing Registration Authority ,ELRA,in partnership with Century Information Systems Ltd ,CIS, and the National Commercial Tricycle and Motorcycle Owners and Riders Association of Nigeria,NATOMORAS, is expected to transform access to vehicle ownership and financing for thousands of riders.

In a statement issued in Abuja by ELRA’s Head of Media and Corporate Communications, Adebola Sunday, the new model was described as a strategic intervention to address the harsh financial realities faced by operators under existing hire purchase arrangements.

Registrar and Chief Executive Officer of ELRA, Mr Donald Wokoma, said the partnership marks a critical step toward deepening financial inclusion and boosting economic empowerment among transport workers.

According to Wokoma, the scheme is designed to eliminate the heavy upfront payments and rigid repayment structures that have long kept many riders trapped in cycles of debt.

Under the new framework, operators will access motorcycles and tricycles through flexible leasing plans that prioritise affordability and provide a clear pathway to ownership.

“Leasing opens the door to economic participation for many who were previously excluded,” Wokoma said, noting that the initiative would enable riders to preserve capital, improve productivity, and ultimately increase their earnings.

He added that the model would not only uplift individual livelihoods but also stimulate broader economic growth.
Wokoma further stressed that access to newer, well-maintained vehicles would significantly reduce breakdowns, cut operational losses, and enhance efficiency across the sector.

On the technology front, Managing Director of Century Information Systems Ltd, Dr Abdul Balarabe, revealed that the scheme would incorporate advanced tracking systems to improve asset monitoring, security, and accountability.

He explained that the integration of technology would help curb theft, strengthen asset recovery mechanisms, and boost safety for both operators and passengers.

Balarabe added that CIS is actively working to onboard cooperatives, trade unions, and other stakeholders into the leasing ecosystem to widen access to structured financing opportunities.

He urged interested groups to key into the initiative and begin the onboarding process.

Also lending his voice, National President of NATOMORAS, Alhaji Usman Gwoza, hailed the programme as a long-overdue intervention for riders burdened by high-cost financing and unsustainable repayment demands.

Gwoza pledged the association’s full support, assuring that its nationwide membership would be mobilised to embrace the scheme.

He noted that the leasing model would restore dignity to operators, promote financial stability, and offer a sustainable path to independence.

Industry watchers say the initiative, if effectively implemented, could redefine Nigeria’s informal transport financing landscape and set a new standard for inclusive economic growth.