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 debate on the piece of legislation, the Senate Leader, Senator 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.
“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.
“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,” Bamidele said.
The Senate Leader noted that the legislation had passed all legislative stages in the House of Representatives and 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 (Lagos East), described the measure as
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