The National Assembly has passed the Factoring, Assignments and Receivables Financing Bill, 2026, a landmark legislation designed to help businesses turn unpaid invoices and credit sales into immediate cash without relying on traditional bank loans.
The Senate concurred with the House of Representatives on Wednesday, establishing a legal framework for debt factoring and receivables financing aimed at boosting liquidity, expanding access to credit, and strengthening both domestic and international trade.
Senate Leader Opeyemi Bamidele (Ekiti Central) explained that the bill provides clear rules for factoring contracts between sellers and financiers, outlining the rights and obligations of all parties.
He noted that the framework would create an enabling environment for alternative financing and support business growth.
Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, highlighted the potential benefits for micro, small, and medium enterprises (MSMEs).
He pointed out that while Africa’s factoring market is valued at over $50 billion, Nigeria accounts for less than one percent, stressing that the new law could help the country tap into this opportunity.
Lawmakers warned that without such a framework, many businesses would continue to struggle with liquidity challenges.
They emphasized that countries like Egypt and Morocco have already reaped significant benefits from similar financing systems.F
ollowing unanimous support, the bill was passed clause-by-clause and will now be transmitted to President Bola Tinubu for assent.
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