Reps assure on delivering reform that’ll protect Nigeria’s financial system

…As Stakeholders back bill seeking to protect victims of fraudulent withdrawals

By Chidinma Obiakor

The House of Representatives on Thursday reiterated its commitment towards delivering reforms that would strengthen confidence and protect Nigeria’s financial system.

Chairman, House Committee on Banking Regulations, Hon. Mohammed el-Rufai gave the assurance in Abuja during the public hearing on the bill which seeks to regulate factoring, the purchase of receivables, and the establishment, operation, and control of factoring and receivables financing businesses; and a bill which seeks to amend the Banks and Other Financial Institutions Act (BOFIA) 2020.

Other stakeholders drawn from the financial sector of the economy,

While reiterating the Committee’s continuing commitment to strengthening Nigeria’s financial system, Hon. el-Rufai explained that the bill for an Act to regulate factoring, the purchase of receivables, and the establishment, operation, and control of factoring and receivables financing businesses, seeks to deepen access to finance for small and medium enterprises, promote liquidity, and align our legal framework with international best practices in trade finance.

He added that the Bill to amend the Banks and Other Financial Institutions Act (BOFIA) 2020, “reflects a deep concern for consumer protection and the integrity of our financial system. It is a proposal that focuses on protecting victims of fraudulent withdrawals from their accounts and ensuring accountability within the financial system.

“Both Bills share a common goal: enhancing trust, transparency, and stability in our banking and financial ecosystem.”

While delivering the keynote address, Governor Uba Sani of Kaduna State who was represented by Special Adviser on Research, Documentation and Strategy, Mr. Fabian Okoye described the Factoring and Receivables Financing Bill as a legislative intervention that can significantly deepen access to finance and energize Nigeria’s productive economy, especially for our Micro, Small and Medium Enterprises (SMEs).

“This Bill is one that I hold close to heart. During my time in the 9th Senate, as Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, I sponsored the Factoring, Assignments and Receivables Financing Bill (SB.667) with the goal of establishing a clear legal and regulatory framework for factoring and receivables financing in Nigeria.

“Our intention then, and the purpose that continues today, was to empower businesses to convert their invoices and receivables into immediate liquidity.
Many Nigerian enterprises deliver goods and services on credit but are forced to wait months before being paid.

“Factoring provides a practical solution by enabling them to raise cash against those receivables, sustain their operations, meet payroll, and expand production.

“Around the world, factoring has become a critical engine for trade finance and SME growth. In emerging markets, it accounts for billions of dollars annually in financing — improving cash flow, reducing defaults, and supporting export competitiveness.

“With the right legal backing, Nigeria can unlock similar benefits, attract investors into the factoring space, and strengthen our financial infrastructure. However, this must be done with balance, ensuring transparency, protecting SMEs from predatory practices, and aligning the law with existing frameworks such as the Secured Transactions in Movable Assets Act, the Companies and Allied Matters Act, and CBN regulations.”

Governor Sani applauded Speaker Abbas Tajudeen for his visionary leadership and steadfast commitment to economic reforms, and for demonstrating consistency in promoting legislations that directly impact the productivity and competitiveness of our economy.

While commending the 10th House for sustaining legislative momentum on this critical reform, he observed that: “by organizing this public hearing, the Committee has created an inclusive platform for stakeholders to refine the Bill and ensure that it truly meets the needs of our economy.

“Let me also commend the National Assembly for its consistency in prioritizing financial reforms that strengthen our banking system and enhance Nigeria’s business environment. When passed, this Bill will not only expand access to finance but also foster innovation, reduce the cost of credit, and promote sustainable economic growth.

“This hearing is a crucial step toward bridging the financing gap for Nigerian businesses and strengthening our economy from the ground up. I am confident that the insights shared here today will guide us toward a law that truly delivers results.”