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