The Senate on Tuesday passed the Factoring, Assignments and Receivables Financing Bill, 2026, a landmark legislation designed to improve access to finance for businesses, enhance liquidity and promote domestic and international trade.
The bill, which scaled third reading during plenary, seeks to establish a comprehensive legal framework for receivables financing, a system that allows businesses to convert unpaid invoices into immediate cash by selling them to financiers at a discount.
Lawmakers considered and adopted the bill in the Committee of the Whole before its final passage.
Leading debate on the legislation, Senate Leader, Senator Opeyemi Bamidele, moved the motion for the bill’s third reading and urged lawmakers to support its passage.
The motion was seconded by the Minority Leader, Senator Abba Moro, who backed the measure and highlighted its expected benefits for businesses and the broader economy.
Following a voice vote, the President of the Senate, Senator Godswill Akpabio, announced the passage of the bill.
Before the final approval, the Clerk of the Senate read the bill’s long title, which seeks to provide legal certainty and transparency in receivables financing transactions.
The legislation 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, expressing confidence that it would stimulate trade and support 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 is widely regarded as an alternative financing mechanism that enables businesses, particularly Micro, Small and Medium Enterprises, to unlock working capital tied up in unpaid invoices rather than relying solely on conventional bank loans.
Industry stakeholders have long argued that the absence of a clear legal framework for receivables financing has limited the growth of factoring in Nigeria despite its potential to improve cash flow, strengthen business operations and expand access to credit.
With the Senate’s approval, lawmakers expect the new framework to increase confidence among financiers, investors and businesses involved in receivables financing transactions, while aligning Nigeria’s commercial laws with international best practices.
Supporters of the bill also believe easier access to working capital will enable businesses to expand operations, create jobs, fulfil contractual obligations more efficiently and compete more effectively in local and global markets.
The passage of the bill marks the final legislative stage at the National Assembly. It will now be transmitted to President Bola Tinubu for assent.
If signed into law, the legislation is expected to establish a modern receivables financing regime aimed at improving access to finance, supporting enterprise growth and advancing Nigeria’s broader economic development objectives.
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