FG makes leasing registration mandatory for procurement contracts

The Federal Government has made the Equipment Leasing Registration Authority certificate a mandatory requirement for contractors seeking public procurement contracts involving equipment leasing, hiring or provision.

The government also warned that procurement approvals and contract awards would not be granted for equipment leasing transactions that failed to comply with the new requirement.

The Bureau of Public Procurement disclosed this in a statement signed by its acting Head of Public Relations, Ngozi Anyaelezu, on Thursday.

The directive was conveyed in a circular issued by the Secretary to the Government of the Federation, Senator George Akume, with reference number 59780/S.2/B/584.

The Director-General of the BPP, Adebowale Adedokun, urged all procuring entities to ensure strict compliance with the directive.

According to the statement, the circular mandates all Ministries, Departments and Agencies and procuring entities to require evidence of Equipment Leasing Registration Authority registration for procurement processes involving the leasing, hiring or provision of equipment.

The government also directed MDAs to incorporate compliance with the registration of lease agreements, in line with Section 13 of the Equipment Leasing Act, 2015, as an additional eligibility and responsiveness criterion for bids involving equipment leasing.

Adedokun said procurement advertisements and solicitation documents for new projects and programmes must clearly specify the registration requirement.

The statement said this applied to “prequalification exercises, financial bids and combined procurement exercises,” adding that prospective bidders involved in equipment leasing “must submit evidence of ELRA registration.”

The BPP chief warned that “no procurement approval, contract awards or execution would be recognised or granted” for equipment leasing procedures that failed to meet the requirement.

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He said the directive was designed to promote safety and quality standards while eliminating unregistered and unregulated equipment leasing practices within public procurement.

The bureau consequently directed MDAs, prospective government contractors and procuring entities to circulate the circular widely and ensure strict compliance, warning that administrative and regulatory sanctions would be applied for violations.

The directive builds on Nigeria’s existing legal framework for equipment leasing and public procurement, including the Equipment Leasing Act, 2015, and the Public Procurement Act, 2007.

The Equipment Leasing Act established a regulatory framework for the industry and provided for the registration of equipment lease agreements.

Under Section 13, an agreement made pursuant to the Act must be registered with the Registration Authority within 14 days after the commencement of the lease.

The Equipment Leasing Registration Authority was inaugurated on May 19, 2023, to implement the law. Its regulatory framework covers the registration of lessors and lease agreements, including finance and operating leases.

The latest directive also follows a compliance notice issued by the BPP in February 2026, which required bidders involved in public procurement processes involving leased equipment to present a valid Equipment Leasing Agreement Registration Certificate.

The earlier notice cited equipment leasing as an approved acquisition option under Section 55(5)(b) of the Public Procurement Act, 2007.

The Public Procurement Act established the BPP as the regulatory body responsible for monitoring and overseeing public procurement, with statutory objectives that include transparency, accountability, fair competition, cost-effectiveness and professionalism in government contracting.

Equipment leasing allows organisations to access machinery and other assets without purchasing them outright. In government projects, such arrangements can support the delivery of infrastructure and public services by providing access to specialised equipment.