16/10/2025
The Senate has passed for second reading a Bill that seeks to create a legal framework, enabling Small and Medium-sized Enterprises, SMEs, to access quicker financing by converting unpaid invoices into immediate cash.
The proposed legislation, titled Factoring Regulation Bill, 2024, was sponsored by Asuquo Ekpenyong, who said it is designed to tackle delayed payments, one of the most persistent challenges confronting micro, small, and medium enterprises, MSMEs, across Nigeria.
Ekpenyong explained that many MSMEs deliver goods or services and wait up to 90 days before receiving payment, leaving them unable to pay workers, replenish inventory, or expand operations. He noted that the cycle of weak cash flow not only traps small businesses but also slows down the economy’s growth.
The lawmaker described the Bill as a major structural reform that would unlock working capital for over 40 million small businesses that form the backbone of Nigeria’s economy.
The senator further said that the Bill provides a comprehensive regulatory structure under the Securities and Exchange Commission, ensuring that only licensed entities can engage in factoring while also mandating full disclosure of costs and fees.
