Lease agreement: ELRA approves waiver of penalty for non-compliance

Mariam Abeeb

The Equipment Leasing Registration Authority (ELRA) has announced the approval of a waiver of penalty for non-compliance with lease agreement registration for first and second quarters of the 2025 fiscal year.

The approval, given by the Registrar/Chief Executive Officer of ELRA, Donald Wokoma, was made available to newsmen in a statement in Abuja .

Wokoma said this strategic decision underscored ELRA’s continued commitment to easing compliance burdens while reinforcing its mandate to ensure the proper documentation and regulation of leasing transactions across Nigeria.

He explained that the waiver applied to statutory penalties and surcharges on late registration of lease agreements in accordance with Section 8 (c) due for submission during Q1 and Q2.

However, he maintained that registration of lease agreements remained mandatory as lessors and lessees were strongly encouraged to take advantage of this window to regularise all outstanding agreements in accordance with the ELRA Act 2015.

“This provides that any person operating as a Lessor in Nigeria must register with the Authority as well as all lease agreements entered between Lessors and Lessees.

“This waiver represents ELRA’s dedication to supporting industry players and fostering an enabling environment for leasing businesses to thrive.

“It is imperative that all stakeholders take this opportunity to ensure full compliance, as mandatory registration is critical for legal enforceability, transparency, and industry credibility,”said Wokoma.

The registrar emphasised that the move aimed to drive increased awareness and adoption of the central lease registry and help streamline leasing operations nationwide.

He said the move was to ensure transparency and credibility in leasing transactions, access to regulatory support and recognition and legal recognition and protection of leases.

Wokoma added that this strategy would also protect the rights of all parties involved, help in transparency and sisk mitigation, and enhance sccess to capital and Fmfinancing, among others.

He, however,  advised stakeholders to log on to www.elra.gov.ng/Registration as failure to register lease agreements going forward may result in legal and regulatory penalties in line with the provisions of the ELRA Act.