The Federal Government has made registration with the Equipment Leasing Registration Authority (ELRA) compulsory for contractors seeking public procurement contracts involving the leasing, hiring or provision of equipment.

The government warned that procurement approvals and contract awards would 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.

The directive was conveyed through 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 Ministries, Departments and Agencies (MDAs) and other procuring entities to ensure strict compliance with the directive.

According to the bureau, all procuring entities must demand evidence of ELRA registration during procurement processes involving the leasing, hiring or provision of equipment.

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

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

The BPP chief warned that no procurement approval, contract award or execution would be recognised or granted for equipment leasing transactions that failed to satisfy the requirement.

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