UNDERSTAND COMPLIANCE ISSUES IN LEASING

 

The Equipment Leasing Act (the new law on leasing in Nigeria), provides guide on how you must drive your business in a way and manner that does not put you at any form of risk. The compliance issues include:

  1. Lessors (owners of asset) shall be a limited liability company with its (MEMAT) having express provision to engage in equipment leasing business
  2. Registration with the Equipment Lease Registration Authority.
  3. Registration of leased equipment within 14 days or 3 months for a lease made before commencement of the Act.
  4. Delivery of lease agreement within 14 days.
  5. Provision of not less than 15 days notice in case of default in rental payment in the required form.
  6. Adherence to other legal proceedings for termination and repossession

         Insurance

  • Insurer to be mutually agreed by the parties.

         Capital Allowance

Capital allowance to be claimed by lessor in all leases.

          End of Lease Options

  1. The lessee (user of asset) is required to return the asset upon termination of the lease agreement in good order and working condition.(s 4(2b)
  2. The lessor can exercise option as regards the sale/disposal of the asset or renew the lease.

A further breakdown and interpretation of the provisions of the Act will further add impetus to your business. Discover these and more, 08023176691, 08023179048, info@elannigeria.org, elan_nigeria@yahoo.com