Senate concurs on receivables financing bill to boost MSMEs, unlock trade credit

The Senate on Wednesday concurred with the House of Representatives connected the Factoring Assignment and Receivables Financing Bill, 2026, a measurement aimed astatine expanding entree to concern for Micro, Small and Medium Enterprises, MSMEs, and deepening home and planetary trade.

The measure seeks to found a ineligible and regulatory model for indebtedness factoring, a financing statement that allows businesses to person unpaid invoices and recognition income into contiguous cash.

Leading statement connected the portion of legislation, the Senate Leader, Senator Opeyemi Bamidele, said the authorities would make an enabling situation for alternate financing mechanisms and fortify liquidity for businesses crossed the country.

According to him, the measure provides a model governing factoring contracts betwixt sellers and financiers, portion intelligibly defining the rights and obligations of each parties.

“The Factoring Assignment and Receivable Financing Bill 2026 seeks to make a regulatory model that would facilitate the improvement of indebtedness factoring arsenic an alternate means of financing for home and planetary commercialized successful Nigeria and supply an enabling situation for it to thrive.

“The measure makes provisions for factoring contracts betwixt the seller and the factor, sets out...