FG Replaces Hire-Purchase Scheme with New Leasing Model for Riders

The Federal Government has introduced a new leasing model for motorcycle and tricycle operators, replacing the existing hire-purchase system widely criticised as exploitative.

The initiative is aimed at improving the welfare of riders while promoting a more sustainable and transparent framework for vehicle ownership in the sector.

Officials said the new model is designed to reduce the financial burden on operators by offering more flexible payment terms and fairer conditions compared to the previous arrangement.

Under the leasing system, riders are expected to have better access to vehicles without the excessive repayment structures that often left them in prolonged debt.

The government noted that the reform forms part of broader efforts to support the informal transport sector and enhance economic inclusion.

Stakeholders in the industry have welcomed the move, describing it as a step toward protecting operators from exploitation and improving their earning potential.

Experts also believe the initiative could lead to increased productivity and better regulation within the sector.

The Federal Government reaffirmed its commitment to implementing policies that promote fairness, economic growth, and improved livelihoods for Nigerians.