The Federal Government has turned its focus to movable assets as collateral for loans, as part of efforts to deepen access to credit and boost equipment leasing in Nigeria.
The Equipment Leasing Registration Authority (ELRA), on Saturday, formalised a partnership with the National Collateral Registry (NCR), a move that has stirred fresh debate over the security of using leased items as bankable collateral.
“This initiative is timely and essential for creating an enabling environment where leased equipment can serve as credible security for financing in Nigeria,” ELRA’s Registrar/CEO, Donald Wokoma, said in a statement signed by the Head of Media and Corporate Communication, Brookslyn Adebola.
Wokoma disclosed that the leasing sector recorded ₦5.1 trillion in lease volume in 2024, with a 20% growth forecast for 2025. He maintained that sustainable financing would empower lessors to expand operations and give small businesses the tools needed for survival.
Read also: Foreign syndicates exploiting Nigerian youths in internet fraud, Advocacy center
“This aligns perfectly with the Renewed Hope Agenda on wealth creation and revenue generation,” he added, while urging the NCR to intensify sensitisation and ensure that all lease transactions were duly registered with ELRA.
But questions have continued to trail the risk of tying loans to movable assets in a volatile business environment, even as stakeholders worry about enforcement and recovery in cases of default.
Responding, the Registrar of the NCR, Xavier-Itam Okon, dismissed such fears, saying the system was designed to protect both lenders and entrepreneurs.
“Our goal is to ensure movable assets are fully recognised as bankable collateral. This partnership will deepen financial inclusion and create opportunities for entrepreneurs who would otherwise struggle to access credit,” Okon said.
Both agencies insisted that the collaboration would deliver long-term gains, including job creation, SME empowerment, and economic growth across the country.
