By George Mgbeleke <\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Bamidele said: \u201cThe 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.\u201d<\/p>\n
He added: \u201cThe 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.\u201d<\/p>\n
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.<\/p>\n
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.<\/p>\n
Abiru explained that the proposed law would enable enterprises to convert credit sales into working capital without resorting to conventional loans.<\/p>\n
He said: \u201cIn 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.\u201d<\/p>\n
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).<\/p>\n
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.<\/p>\n
Abiru said: \u201cThe size of that market today is in excess of $50 billion, and Nigeria’s share is under one per cent.\u201d<\/p>\n
He added: \u201cCountries 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.\u201d<\/p>\n
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.<\/p>\n
The legislation is expected to improve access to finance, modernise commercial transactions and enhance Nigeria’s competitiveness in regional and global trade.<\/p>\n
END<\/p>\n","protected":false},"excerpt":{"rendered":"
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 […]<\/p>\n","protected":false},"author":2,"featured_media":8992,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-14494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-news"],"_links":{"self":[{"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/posts\/14494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/comments?post=14494"}],"version-history":[{"count":1,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/posts\/14494\/revisions"}],"predecessor-version":[{"id":14495,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/posts\/14494\/revisions\/14495"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/media\/8992"}],"wp:attachment":[{"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/media?parent=14494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/categories?post=14494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/tags?post=14494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}