The Senate has passed the Factoring, Assignments and Receivables Financing Bill, 2026, a new legislation aimed at improving access to finance for businesses and strengthening trade both locally and internationally.
The bill scaled its third reading during plenary on Tuesday after lawmakers considered and adopted it at the Committee of the Whole.
It introduces a legal framework for receivables financing, allowing businesses—especially small and medium enterprises—to convert unpaid invoices into immediate cash by selling them to financiers at a discount.
Senate Leader, Opeyemi Bamidele, moved the motion for the third reading of the bill, while Minority Leader, Abba Moro, seconded it, with both lawmakers expressing support for its potential economic benefits.
Following a voice vote, Senate President Godswill Akpabio announced its passage, commending both chambers of the National Assembly for advancing the reform.
He noted that the legislation would support domestic and international trade and help improve Nigeria’s trade balance by boosting liquidity in the business environment.
The bill provides legal clarity and structure for receivables financing transactions, an area that has long lacked a formal framework in Nigeria despite its importance in business financing.
Industry experts say the law could unlock new funding opportunities for businesses by enabling them to access working capital tied up in unpaid invoices, reducing reliance on traditional bank loans.
With the Senate’s approval, the bill will now be forwarded to President Bola Tinubu for assent.
If signed into law, it is expected to modernize financing systems, improve access to credit, and support economic growth and job creation.
