Senate Approves Receivables Financing Bill for MSMEs

On a recent date, the Nigerian Senate passed the Receivables Financing Bill 2026, which is designed to unlock the $50 billion African factoring market for micro, small, and medium enterprises (MSMEs). The legislation aims to create a legal regulatory framework for debt factoring, enabling businesses to convert unpaid invoices from credit sales into immediate working capital without relying on conventional bank loans.

Senate Leader Opeyemi Bamidele emphasized that the bill would foster an enabling environment for alternative financing and strengthen liquidity for businesses nationwide. Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and Financial Institutions, described the legislation as a critical lifeline for small businesses facing liquidity constraints.

The bill is expected to enhance Nigeria's competitiveness in regional and global trade. It is now subject to presidential assent after receiving unanimous support from lawmakers.