The federal government has revealed that it is targeting an estimated $1.5 billion in additional revenue from investments in equipment globally as it set to unveil the Equipment Leasing Registration Authority
The Chairman of ELRA, Saidu Njidda, who announced the unveiling of the agency said the ceremony would be performed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, tomorrow.
Checks by Daily Trust have shown that Equipment Leasing serves as an alternative and significant source of finance to loans and has immensely contributed to capital formation in the global economy with its wide usage in many countries for the acquisition of capital assets.
Njidda said the implementation of the Equipment Leasing Act would serve as a viable alternative to loans to herald a new era of enhanced revenue generation given that just 20% of total investment in equipment contributes about 1.5% of the global Gross Domestic Product (GDP).
He said the inauguration of the agency would enable it to play its role as a key driver and facilitator of two of the Tinubu Administration’s eight-point agenda, namely ‘Access to Capital and Job Creation.”
The ELRA Board was inaugurated in May 2022 by the immediate past Minister of Finance, Budget and National Planning, Zainab Ahmed, following the establishment of the authority by the provisions of Section 8 of the Equipment Leasing Act, 2015.
The ELRA Boss further observed that in Nigeria Leasing has contributed over N14.3 trillion to the country’s GDP over the last 10 years, adding that it has continued to be more relevant, especially under the prevailing situation where access to finance was difficult, especially for Micro, Small and Medium-scale Enterprise (MSMES).