The House of Representatives Committee on Banking Regulations has taken another decisive step toward strengthening Nigeria’s financial system, expanding access to credit for small and medium-sized enterprises, and safeguarding consumers against fraud. The Committee, chaired by Hon. Mohammed Bello El-Rufai, convened a public hearing in Abuja on Thursday to deliberate on two key bills designed to reform and modernize the nation’s banking and finance framework.
The first legislation, A Bill to Regulate Factoring, Purchase of Receivables, and the Establishment, Operation, and Control of Factoring and Receivables Financing Businesses (HB. 516), seeks to deepen access to finance for SMEs, promote liquidity, and align Nigeria’s legal framework with international trade finance standards. The second, A Bill to Amend the Banks and Other Financial Institutions Act (BOFIA) 2020 (HB. 1160), sponsored by Hon. Moses Oluwatoyin Fayinka, aims to enhance accountability in the banking sector and protect depositors and victims of fraudulent withdrawals.
In his opening remarks, Hon. El-Rufai described both bills as vital instruments for building a stronger, more transparent, and consumer-friendly financial system. He stressed that the Committee’s vision is to create a framework where financial institutions operate with fairness, clarity, and responsibility. “Both bills share a common goal — enhancing trust, transparency, and stability in our financial ecosystem,” he said, urging all stakeholders to collaborate in crafting effective, equitable laws that support national growth.
Representing Kaduna State Governor Senator Uba Sani at the hearing, his Special Adviser on Research, Documentation, and Strategy, Mr. Fabian Okoye, commended the initiative and described the Factoring and Receivables Financing Bill as a transformative policy tool capable of unlocking liquidity and stimulating Nigeria’s productive sectors. Governor Sani, who had previously sponsored a similar bill in the 9th Senate, explained that factoring enables businesses to convert receivables into immediate cash, thus maintaining cash flow and sustaining operations.
“Many Nigerian enterprises deliver goods and services on credit but wait months before being paid. Factoring provides a practical solution — enabling them to raise cash against those receivables,” Sani said. He also emphasized the need for transparency and strong regulatory oversight to prevent exploitation of small businesses, highlighting the importance of aligning the proposed law with existing legislation such as the Secured Transactions in Movable Assets Act, the Companies and Allied Matters Act, and relevant Central Bank of Nigeria (CBN) regulations.
Governor Sani commended Speaker of the House Rt. Hon. Tajudeen Abbas for his leadership in driving economic reform legislation and praised Hon. El-Rufai’s Committee for its proactive efforts to strengthen Nigeria’s financial institutions. “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,” he stated.
The public hearing attracted strong participation from major industry stakeholders, including the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Nigerian Export-Import Bank (NEXIM), Afreximbank, African Development Bank (AfDB), the World Bank, and representatives of the organized private sector such as the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the National Association of Small and Medium Enterprises (NASME).
Following the robust exchange of views and expert submissions, the two bills will proceed to further legislative review, incorporating stakeholder feedback before being presented for third reading and passage by the House of Representatives. The Committee reaffirmed its resolve to ensure that the final versions of the laws strengthen Nigeria’s financial ecosystem, empower businesses, and protect citizens’ interests.
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