…as stakeholders rally behind new bill aimed at protecting victims of bank fraud
By Gloria Ikibah
The House of Representatives has reaffirmed its determination to introduce far-reaching reforms designed to reinforce public confidence and strengthen the country’s financial system. 
At a public hearing held in Abuja, the Chairman House Committee on Banking Regulations, Rep. Mohammed El-Rufai, said that the proposed legislation before the National Assembly aims to close regulatory gaps, expand access to finance, and protect consumers from fraudulent activities within the banking sector.
The hearing centred on two key bills: one seeking to regulate factoring, the purchase of receivables, and the establishment and oversight of receivables financing businesses; and another proposing amendments to the Banks and Other Financial Institutions Act (BOFIA) 2020.
The first bill is designed to enhance liquidity for small and medium enterprises, facilitate business financing, and align Nigeria’s financial framework with global trade finance standards. While the second bill focuses on ensuring greater protection for bank customers, particularly those affected by unauthorised withdrawals, while promoting transparency and accountability within the financial ecosystem.
Stakeholders from across the financial sector expressed broad support for both bills, describing them as timely measures that would not only stabilise the banking industry but also boost investor confidence and consumer trust in Nigeria’s financial institutions.
“Both Bills share a common goal: enhancing trust, transparency, and stability in our banking and financial ecosystem.”
Delivering the keynote address, Governor Uba Sani of Kaduna State who was represented by Special Adviser on Research, Documentation and Strategy, 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).
He said: “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 Tajudeen Abbas 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 said that by organising the 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”, he added.
