The national assembly(NASS) has passed the Factoring, Assignments and Receivables Financing Bill, 2026, a legislation that will allow businesses to convert unpaid invoices and credit sales into immediate cash without relying on conventional bank loans.
During Wednesday’s plenary, the Senate agreed with the House of Representatives on the bill.
In order to increase credit availability, strengthen liquidity, and promote both domestic and international trade, the proposed legislation seeks to establish a legal and regulatory framework for debt factoring and receivables financing.
Meanwhile, Opeyemi Bamidele, the Senate Leader and senator representing Ekiti Central, led the debate and said the bill would encourage business growth and create a supportive environment for alternative financing.
He 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.”
According to Bamidele, the law outlines the rights and responsibilities of all parties involved while defining the structure for factoring contracts between financiers and sellers.
In addition, he noted that the Senate ad hoc committee on compliance, led by Abdul Ningi, had cleared the bill for concurrence after it had already passed all legislative stages in the House of Representatives.
Similarly, Adetokunbo Abiru, chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, said the proposal would provide micro, small and medium-sized enterprises (MSMEs) with a significant financing option.
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