June 10, 2026
Senate
By Henry Umoru, Abuja
The Senate has passed the Factoring, Assignments and Receivables Financing Bill, a major legislative effort aimed at improving access to finance for Micro, Small and Medium Enterprises (MSMEs) and strengthening liquidity in the business sector.
The Bill provides a legal and regulatory framework for debt factoring in Nigeria, allowing suppliers and MSMEs to sell their unpaid invoices (receivables) to third-party financiers—known as “factors”—at a discount in exchange for immediate cash. The arrangement is expected to ease cash flow pressures on small businesses without requiring traditional collateral.
