A riders leasing model has been introduced by the Federal Government as a structured alternative to replace what it described as exploitative hire purchase arrangements affecting motorcycle and tricycle operators across Nigeria.
The initiative is designed to improve access to vehicles while reducing financial pressure on operators.
The programme is being implemented through the Equipment Leasing Registration Authority in partnership with Century Information Systems Ltd. and the National Commercial Tricycle and Motorcycle Owners and Riders Association of Nigeria.
The collaboration aims to create a formalised financing system that is more accessible and transparent for riders.
According to a statement issued in Abuja by the Head of Media and Corporate Communication of ELRA, Adebola Sunday, the riders leasing model provides a structured replacement for existing financing systems that have disadvantaged operators over time.
The agency said the model addresses long-standing concerns about affordability and access.
Registrar and Chief Executive Officer of ELRA, Donald Wokoma, described the initiative as a step toward improving financial inclusion within the informal transport sector.
He explained that the model removes heavy upfront payment requirements and introduces structured repayment systems that allow operators to retain working capital.
“Leasing opens the door to economic participation for many who were previously excluded,” Wokoma said, adding that the system allows operators to “preserve capital, improve productivity, and increase daily earnings.”
The riders leasing model also aims to improve operational efficiency by enabling access to newer and better-maintained vehicles.
According to the agency, this is expected to reduce downtime caused by mechanical faults and increase income stability for operators.
Managing Director of Century Information Systems Ltd., Abdul Balarabe, stated that the model incorporates technology-driven solutions to enhance monitoring and accountability.
He said advanced tracking systems would be deployed to manage leased assets, prevent theft, and improve recovery processes.
Balarabe added that the company would onboard trade associations, cooperatives, and stakeholders into the leasing ecosystem to expand access to structured financing.
He encouraged organisations to participate in the onboarding process to benefit from the initiative.
National President of the National Commercial Tricycle and Motorcycle Owners and Riders Association of Nigeria, Usman Gwoza, welcomed the initiative, describing it as relief for members affected by high-cost financing systems.
He stated that the riders leasing model would promote stability and financial independence among operators.
For years, motorcycle and tricycle operators have relied on informal hire purchase arrangements characterised by high interest rates, unclear terms, and the risk of asset repossession after minor defaults.
These conditions have limited the ability of riders to build equity and expand their operations.
The introduction of the riders leasing model aligns with broader government efforts to deepen financial inclusion and formalise segments of the informal economy.
The transport sector, which employs millions of Nigerians, remains a key focus of such reforms.
The riders leasing model is expected to improve access to productive assets, reduce financial vulnerability, and enhance income stability among transport operators.
Structured financing may also strengthen accountability and reduce exploitation within the sector.
The initiative could contribute to broader economic participation by enabling more individuals to enter and sustain livelihoods within the transport industry.
