The Federal Government has made registration with the Equipment Leasing Registration Authority (ELRA) a mandatory requirement for contractors seeking public procurement contracts involving the leasing, hiring or provision of equipment.
The directive requires Ministries, Departments and Agencies (MDAs), as well as other government procuring entities, to demand evidence of ELRA registration from prospective bidders involved in equipment leasing. The government has also warned that procurement approvals and contract awards will not be granted for transactions that fail to comply with the requirement.
The directive was communicated through a circular issued by the Secretary to the Government of the Federation, Senator George Akume, with reference number 59780/S.2/B/584, dated August 12, 2026. The Bureau of Public Procurement (BPP) subsequently called on procuring entities to ensure strict compliance.
According to a statement signed by the BPP’s Acting Head of Public Relations, Ngozi C. Anyaelezu, the circular directs government agencies to make evidence of ELRA registration a condition for procurement processes involving the leasing, hiring or provision of equipment.
The requirement also covers compliance with the registration of lease agreements under Section 13 of the Equipment Leasing Act, 2015. Government agencies are expected to incorporate the condition into eligibility and responsiveness criteria for bids involving equipment leasing.
Director-General of the BPP, Dr Adebowale Adedokun, said advertisements and solicitation documents for new projects and programmes must clearly state the registration requirement. This applies to prequalification exercises, financial bids and combined procurement exercises.
The government warned that no procurement approval, contract award or execution would be recognised or granted for equipment leasing procedures that do not meet the prescribed requirements. Administrative and regulatory sanctions may also be imposed for non-compliance.
The BPP said the measure is intended to strengthen regulatory oversight, promote safety and quality standards, and eliminate unregistered and unregulated equipment leasing practices in public procurement.
The development reinforces the existing legal framework governing equipment leasing in Nigeria. Under the Equipment Leasing Act, 2015, lease agreements covered by the law must be registered with the relevant authority within 14 days after commencement of the lease.
ELRA was inaugurated on May 19, 2023, to implement the regulatory framework for the industry, including the registration of lessors and equipment lease agreements covering finance and operating leases.
The new directive places an additional compliance obligation on contractors seeking government business involving leased equipment, making registration evidence a key requirement during the bidding process.
For businesses operating in the equipment leasing sector, the policy underscores the importance of ensuring that their registrations and lease documentation are in order before participating in public procurement exercises. The government said strict enforcement would support transparency, responsible asset management and value for money in the use of public funds.
