FG launches new leasing model to replace exploitative hire-purchase for Keke, Okada riders

The Federal Government has introduced a new leasing framework designed to replace exploitative hire-purchase arrangements for motorcycle (keke) and tricycle (Okada) operators across Nigeria, aiming to reduce financial burdens and improve access to vehicles.

The initiative, launched through the Equipment Leasing Registration Authority (ELRA) in partnership with Century Information Systems Ltd. and the National Commercial Tricycle and Motorcycle Owners and Riders Association of Nigeria (NATOMORAS), provides a structured alternative to the high-interest, rigid financing systems that have long disadvantaged operators.

In a statement issued on Thursday, ELRA’s Head of Media and Corporate Communication, Adebola Sunday, said the programme is part of the government’s efforts to promote financial inclusion and economic empowerment within the informal transport sector.

The ELRA Registrar and CEO, Donald Wokoma, explained that the leasing model addresses the challenges posed by high upfront costs and inflexible repayment terms, which have limited access to motorcycles and tricycles for many operators.

“Leasing opens the door to economic participation for many who were previously excluded. By removing heavy upfront payment requirements and introducing structured repayment plans, operators can preserve capital, improve productivity, and increase daily earnings,” Wokoma said. “It is a model that strengthens both individual livelihoods and the national economy.”

Wokoma also noted that access to newer, well-maintained vehicles would help reduce breakdown-related losses and improve operational efficiency in the sector.

Speaking on behalf of Century Information Systems Ltd., Abdul Balarabe said the programme would leverage technology-driven solutions to enhance safety and accountability, including advanced tracking systems to monitor leased assets, prevent theft, and improve recovery efforts. He encouraged trade associations, cooperatives, and other stakeholders to join the leasing ecosystem to expand access to structured financing.

NATOMORAS National President, Usman Gwoza, welcomed the initiative, describing it as long-awaited relief for riders burdened by high-cost financing and unsustainable repayment terms. He pledged to mobilise members nationwide to participate, emphasizing that the model would promote dignity, stability, and financial independence for operators.

For years, many motorcycle and tricycle operators have relied on informal hire-purchase arrangements characterised by high interest rates, opaque terms, and the risk of asset repossession after minor defaults. These conditions have limited opportunities for riders to build equity, expand their businesses, or achieve long-term financial stability.

The leasing programme is part of broader government efforts to deepen financial inclusion and formalise Nigeria’s informal transport sector, which employs millions of people across the country.

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