Receivables financing bill passes the Senate, paving the way for improved access to credit and stronger support for Nigerian businesses

The Senate has passed the Receivables Financing Bill, 2026, a landmark piece of legislation aimed at improving access to finance for businesses, enhancing liquidity and supporting domestic and international trade.

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The bill scaled third reading during plenary on Tuesday after lawmakers considered and adopted it in the Committee of the Whole before its final passage.

The legislation seeks to establish a comprehensive legal framework for receivables financing, a mechanism that enables businesses to convert unpaid invoices into immediate cash by assigning or selling them to financiers at a discount.

Leading debate on the measure, Senate Leader, Opeyemi Bamidele, moved the motion for the bill’s third reading and urged lawmakers to support its passage.

The motion was seconded by Minority Leader, Abba Moro, who highlighted the potential benefits of the legislation for businesses and the wider economy.

Following a voice vote, President of the Senate, Godswill Akpabio, announced the passage of the bill.

Before the final approval, the Clerk of the Senate read the long title of the proposed legislation, which is designed to provide legal certainty and transparency for receivables financing transactions.

The bill is formally titled, “A Bill for an Act to provide for the assignment of receivables, establish legal certainty, promote transparency, modernise assignment laws, facilitate access to credit, enhance domestic and international trade and for related matters.”

Speaking after its passage, Akpabio commended both chambers of the National Assembly for advancing the legislation and expressed optimism that it would stimulate trade and strengthen economic growth.

“I also thank the House of Representatives for initiating this, which I believe will help in both domestic and international trade.

I thank all of you for your contributions and wish that this will also assist Nigeria to balance its deficits in trade with other countries,” he said.

Factoring, also known as receivables financing, is widely recognised as an alternative funding solution that allows businesses, particularly Micro, Small and Medium Enterprises, to unlock working capital tied up in unpaid invoices rather than depending solely on traditional bank loans.

Industry stakeholders have long maintained that the absence of a dedicated legal framework has hindered the growth of factoring in Nigeria despite its potential to improve cash flow, increase access to credit and strengthen business operations.

Supporters of the Receivables Financing Bill believe the new framework will boost confidence among financiers, investors and businesses by providing clearer rules governing receivables transactions.

They also argue that easier access to working capital could help businesses expand operations, meet contractual obligations more efficiently, create jobs and compete more effectively in both local and international markets.

The passage of the bill marks the final stage of legislative consideration at the National Assembly.

The legislation will now be transmitted to Bola Tinubu for presidential assent.

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If signed into law, the measure is expected to establish a modern receivables financing regime capable of improving business financing opportunities, supporting enterprise growth and advancing Nigeria’s broader economic development objectives.