By George Mgbeleke

The Senate on Wednesday concurred with the House of Representatives on the Factoring Assignment and Receivables Financing Bill, 2026, a measure aimed at expanding access to finance for Micro, Small and Medium Enterprises (MSMEs) and deepening domestic and international trade.

The Bill seeks to establish a legal and regulatory framework for debt factoring, a financing arrangement that allows businesses to convert unpaid invoices and credit sales into immediate cash.

Leading the debate, Senate Leader Opeyemi Bamidele said the legislation would create an enabling environment for alternative financing mechanisms and strengthen liquidity for businesses across the country.

According to him, the Bill provides a framework governing factoring contracts between sellers and financiers, while clearly defining the rights and obligations of all parties involved.

Bamidele said: “The Factoring Assignment and Receivable Financing Bill 2026 seeks to create a regulatory framework that would facilitate the development of debt factoring as an alternative means of financing for domestic and international trade in Nigeria and provide an enabling environment for it to thrive.”

He added: “The bill makes provisions for factoring contracts between the seller and the factor, sets out the relationship between the creditor and the factor, and defines their respective rights and obligations.”

The Senate Leader noted that the legislation had successfully passed through all legislative stages in the House of Representatives and had met all procedural requirements for Senate concurrence.

Supporting the bill, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru, described the measure as a major intervention for small businesses struggling with liquidity constraints.

Abiru explained that the proposed law would enable enterprises to convert credit sales into working capital without resorting to conventional loans.

He said: “In simple terms, what this bill seeks to do is provide a regulatory framework to support financing arrangements that will help most of our micro, small and medium enterprises convert their credit sales into immediate cash and provide liquidity and working capital.”

The Lagos East senator noted that factoring had become a major financing instrument across Africa, especially through the activities of the African Export-Import Bank (Afreximbank).

According to him, the African factoring market is currently worth more than $50 billion, but Nigeria accounts for less than one per cent of the market.

Abiru said: “The size of that market today is in excess of $50 billion, and Nigeria’s share is under one per cent.”

He added: “Countries like Egypt and Morocco have benefited largely from this, and passing this legislation will support our MSMEs in converting credit sales into cash without resorting to conventional borrowing arrangements.”

Following unanimous support from lawmakers, the bill was referred to the Committee of the Whole for clause-by-clause consideration after which it was passed.

The legislation is expected to improve access to finance, modernise commercial transactions and enhance Nigeria’s competitiveness in regional and global trade.

END

By George Mgbeleke

A fire outbreak in the Senate wing of the National Assembly was quickly contained on Wednesday, preventing it from spreading beyond the kitchen compartment of Hearing Room 107.

The incident occurred shortly after the Senate Committee on Niger Delta Development Commission, NDDC, concluded the screening of Dr. Zainab Marwa as the member representing the North East on the commission’s board.

It was gathered that the fire emanated from a microwave oven left on in the kitchen area which led to smoke from the fire to rapidly filled the hearing room, causing brief commotion among officials and journalists present.

Chairman of the Senate Committee on NDDC, Senator Asuquo Ekpenyong (Cross River South), and Senator Salihu Mustapha (Kwara Central) swiftly intervened to put out the fire before it could escalate.

The quick action of the two lawmakers ensured the fire was extinguished and normal activities resumed shortly after.

No injuries or significant damage to property were reported as at the time of filing this report.

Earlier during the screening, lawmakers expressed satisfaction with the response of Marwa to the questions put to her over the new role in the NDDC.

President Bola Tinubu had last week asked the Senate to confirm the nominee as a member of the Governing Board of the NDDC.

The Senate President Godswill Akpabio, who read the letter containing the request during plenary, referred it to the committee for legislative process and report back within two weeks