By Emmanuella Opara | October 22nd 2026
KEY POINTS
- The Federal Government has made Equipment Leasing Registration Authority (ELRA) registration evidence compulsory for public procurement contracts involving equipment leasing, hiring or provision.
- Ministries, Departments and Agencies must include the requirement in procurement advertisements and bidding documents.
- Bids involving equipment leasing must comply with Section 13 of the Equipment Leasing Act, 2015.
- The Bureau of Public Procurement warns that non-compliant transactions will not receive procurement approval or contract awards, while violations may attract sanctions.
MAIN STORY
The Federal Government has made registration with the Equipment Leasing Registration Authority a mandatory requirement for contractors seeking public procurement contracts involving the leasing, hiring or provision of equipment.
The directive also provides that procurement approvals and contract awards will not be granted for equipment leasing transactions that fail to meet the registration requirement.
The Bureau of Public Procurement disclosed this in a statement signed by its acting Head of Public Relations, Ngozi Anyaelezu, on Thursday.
According to the bureau, the directive was communicated through a circular issued by the Secretary to the Government of the Federation, George Akume, with reference number 59780/S.2/B/584.
The Director-General of the BPP, Adebowale Adedokun, called on procuring entities to comply with the directive, which applies to Ministries, Departments and Agencies and other public procurement bodies.
The circular requires these entities to demand evidence of ELRA registration for procurement processes involving equipment leasing, hiring or provision. It also directs them to make registration of lease agreements, in line with Section 13 of the Equipment Leasing Act, 2015, an additional eligibility and responsiveness criterion for relevant bids.
Procurement advertisements and solicitation documents for new projects and programmes must clearly state the requirement. The directive covers prequalification exercises, financial bids and combined procurement exercises, with prospective bidders required to submit evidence of registration.
The BPP warned that procurement approvals, contract awards and execution would not be recognised or granted for equipment leasing procedures that failed to comply with the directive. It also said administrative and regulatory sanctions would apply to violations.
The bureau said the measure was intended to promote safety and quality standards and curb unregistered and unregulated equipment leasing practices in public procurement. It urged government agencies, prospective contractors and procuring entities to circulate the directive and ensure compliance.
The requirement builds on the Equipment Leasing Act, 2015, and the Public Procurement Act, 2007. The Equipment Leasing Act provides a regulatory framework for the industry and requires lease agreements made under the law to 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 responsibilities include registering lessors and lease agreements, including finance and operating leases.
The latest directive follows a compliance notice issued by the BPP in February 2026, which required bidders involved in public procurement processes using leased equipment to present a valid Equipment Leasing Agreement Registration Certificate.
That notice referred to 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 to monitor and oversee public procurement, with 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 public projects, it can provide access to specialised equipment for infrastructure development and service delivery.
THE ISSUES
The directive makes registration evidence a formal condition for public procurement bids involving leased equipment. Contractors and government procuring entities will need to ensure that relevant lease agreements comply with the Equipment Leasing Act, 2015.
The government has also linked compliance to procurement approval and contract awards, warning that violations could attract administrative and regulatory sanctions.
WHAT’S BEING SAID
“No procurement approval, contract awards or execution would be recognised or granted” for equipment leasing procedures that fail to meet the requirement, the Bureau of Public Procurement stated.
WHAT’S NEXT
Ministries, Departments and Agencies, prospective contractors and other procuring entities are expected to incorporate the registration requirement into relevant procurement processes and bidding documents. The BPP says administrative and regulatory sanctions will apply to violations.
BOTTOM LINE
The Federal Government has made ELRA registration evidence compulsory for public procurement contracts involving equipment leasing, with non-compliant bids at risk of losing approval or contract awards.
