FG bars unregistered equipment leasing firms from public contracts, threatens sanctions

The Federal Government has tightened the eligibility requirements for public contracts involving equipment leasing, directing ministries, departments and agencies (MDAs) to reject bids from companies without valid registration with the Equipment Leasing Registration Authority (ELRA).

Under the new directive, contractors seeking government contracts involving the leasing, hiring or provision of equipment must provide evidence of ELRA registration, while non-compliant bids risk disqualification and their associated procurement processes may be denied approval.

The government has also warned that procurement approvals and contract awards or execution will not be recognised or granted for equipment-leasing transactions that fail to meet the prescribed regulatory requirements.

The directive, which signals a tougher regulatory regime for equipment leasing in public procurement, was conveyed in a circular issued by the Secretary to the Government of the Federation, Senator George Akume, on August 12, 2026.

The circular, with reference number 59780/S.2/B/584, requires all procuring entities to make ELRA registration a compulsory eligibility condition for bidders involved in equipment-leasing arrangements.

The Bureau of Public Procurement (BPP), which announced the enforcement measure on Wednesday, through its Acting Head, Public Relations, Ngozi Anyaelezu, said the directive was intended to strengthen transparency, improve efficiency and value for money, and eliminate unregistered and unregulated practices in equipment leasing for government projects.

The Director-General of the BPP, Dr Adebowale Adedokun, urged all MDAs and procuring entities to comply fully, stressing that evidence of registration must be expressly stated as a requirement in procurement advertisements and solicitation documents.

According to the bureau, the requirement must apply to new projects and programmes, including prequalification exercises, financial bids and combined procurement processes involving equipment leasing.

The government has further directed procuring entities to incorporate compliance with the registration of lease agreements under Section 13 of the Equipment Leasing Act, 2015, as an additional eligibility and responsiveness criterion for bids involving equipment leasing.

The measure effectively places greater responsibility on government procurement officers to verify bidders’ regulatory status before advancing their submissions through the procurement process.

It also means that contractors intending to participate in equipment-leasing tenders will have to ensure that their registration status meets the prescribed requirements before submitting bids.

The BPP said the directive was designed to promote regulatory compliance, strengthen safety and quality standards, and improve professionalism in the equipment-leasing sector.

It added that strict compliance would be enforced, with appropriate administrative and regulatory sanctions awaiting those who violate the directive.

All MDAs, prospective government contractors and procuring entities have consequently been directed to give the circular wide circulation and ensure that its provisions are strictly implemented.

The government’s intervention underscores the importance of regulating equipment leasing in public procurement, particularly where the acquisition or use of machinery and other equipment forms part of publicly funded projects.

By making ELRA registration a mandatory condition, the government is seeking to ensure that equipment-leasing transactions undertaken with public funds are conducted within the applicable regulatory framework, with greater emphasis on accountability, safety and value for money.

The directive places equipment-leasing compliance firmly within the government’s procurement enforcement framework, making registration a critical consideration for contractors seeking to secure public-sector business.