Section 44: Interpretation

In this Act unless the context otherwise requires—
“Capital allowance” means any allowance :or other concession granted by the Federal Board of Inland Revenue of or other taxing authority to meet any diminish in value of an equipment subject of an equipment lease;
“Cross-border lease” is a lease in which the lessee and the equipment are non-resident of Nigeria; or in which the lessor is a non-resident of Nigeria;
“Equipment” means any moveable and immoveable equipment howsoever described;
“Finance lease” is a lease involving rental - payment over an obligatory period sufficient in total to amortise the capital outlay of the lessor and also give the lessor some benefit.
“Lease agreement” means a written agreement between the lessor and the lessee for the lessee’s use in consideration of the payment of an agreed rentals over a specified period for —
(a) either the lessor’s own already acquired equipment; or
(b) any equipment agreed to be acquired by the lessor from a third-party (supplier) whether chosen by the lessee or not such that the lessor shall retain full title and legal ownership during the specified period of the lease;
“Lessor” means any person who under an equipment lease agreement transfers to another person or body (the lessee) the right to use an equipment in return for an agreed consideration for an agreed period;
“Leverage lease” is a lease involving a lessor, lessee and a lender that supplies the greater part of the purchase price of equipment leased;
“Minister” means the Minister who for the time being is in charge of Finance;
“Non-concealable period” means such period within which an equipment lease agreement is concealable only—
(a) on the occurrence of some remote contingency; or
(b) by mutual agreement; or
(c) by operation of law;
“Operating lease” is a lease involving rental payment over an obligatory period but the equipment is not wholly mortised during the non-concealable period if any, of the lease, and the lessor does not rely for his profit on the rentals in the concealable period.
“Option” means any provision in an equipment lease agreement dealing with the disposal of the equipment at the expiration of the lease;
“Rental” means the total consideration payable by the lessee to a lessor under an equipment lease inclusive of any sum payable as management fees, services or other charges or any part thereof payable at specified intervals;
“Supplier” means a person (other than lessor or lessee) who in the ordinary course of business supplies any equipment to a lessor or a lessee which equipments are the subject of a lease between the lessor and the lessee:
“Syndicated lease” is a lease involving more than one lessor who jointly lease, an equipment to a single lessee;
“Sale and lease back” is a lease where the lessee (owner of all equipment) sells the equipment to the lessor and simultaneously leases it back from the lessor (the new owner);
“Third party” means any person or body other than the lessor or lessee under an equipment lease and not being a lawful assignee, or sub-lease there under.