The Senate has passed for second reading a Bill seeking to create a legal framework that enables small and medium-sized enterprises (SMEs) to access quick financing by converting unpaid invoices into immediate cash. The proposed legislation, titled F… Read on blog or Reader SMALL BUSINESS INSIGHTS Read on blog or Reader Senate moves to ease SME cash flow with invoice financing bill By Enitan Ajebukola Ajewumi on October 16, 2025 The Senate has passed for second reading a Bill seeking to create a legal framework that enables small and medium-sized enterprises (SMEs) to access quick financing by converting unpaid invoices into immediate cash. The proposed legislation, titled Factoring Regulation Bill, 2024, was sponsored by Senator Asuquo Ekpenyong, who said the measure is designed to address one of the biggest challenges facing Nigerian small businesses — delayed payments. According to Ekpenyong, many SMEs deliver goods or services and then wait up to 90 days to receive payment, a delay that disrupts cash flow, limits operations, and stifles growth. The Bill proposes factoring as a solution — a financing mechanism that allows businesses to sell verified invoices to licensed finance companies or banks at a small discount in exchange for immediate cash. Unlike traditional bank loans that rely on collateral, factoring is based on the buyer's creditworthiness and the validity of the invoice, enabling SMEs to access working capital based on sales rather than fixed assets. Read also, Senate moves to ease SME cash flow with invoice financing bill CBN reforms deepen FX stability, lift investor confidence APPLY NOW: Customer Service Representative APPLY NOW: Information Technology Support Seyi Tinubu launches digital upskilling program for SMEs Ekpenyong explained that the Bill places regulatory oversight under the Securities and Exchange Commission (SEC), ensuring only licensed entities can engage in factoring, while requiring full disclosure of costs and fees to protect businesses. It also makes invoice transfers legally enforceable, aligning with digital reforms such as e-invoicing and receivables registries to curb fraud and improve transparency. He added that the framework would encourage large corporations and government agencies to adopt supplier-financing programmes that allow MSMEs to receive early payments at lower costs. Citing global examples from Mexico, India, Chile, Brazil, and South Africa, Ekpenyong noted that similar reforms had unlocked billions of dollars in working capital for small businesses, boosting productivity and employment. The Bill, first introduced on June 11, 2024, also mandates regular reporting on transaction volumes and MSME participation, while promoting financial literacy through simplified contracts and standard term sheets. It has been referred to the Senate Committee on Banking, Insurance and Financial Institutions for further consideration and is expected to be reported back in four weeks.

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The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has reassured investors of Nigeria's improving macroeconomic environment, highlighting stronger foreign exchange stability and growing investor confidence. Speaking at an Investors… Read on blog or Reader SMALL BUSINESS INSIGHTS Read on blog or Reader CBN reforms deepen FX stability, lift investor confidence By Enitan Ajebukola Ajewumi on October 16, 2025 The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has reassured investors of Nigeria's improving macroeconomic environment, highlighting stronger foreign exchange stability and growing investor confidence. Speaking at an Investors' Forum in Washington D.C. on the sidelines of the IMF/World Bank Annual Meetings, Cardoso revealed that Nigeria's foreign exchange (FX) market turnover has risen to $8.6 billion monthly in 2025, up from an average of $5.5 billion last year. He also disclosed that the country's gross external reserves now stand at $43.4 billion, providing 11 months of import cover, the highest level in five years. According to him, the FX market premium, which stood at 52 per cent in 2022, has now dropped to below three per cent — a major outcome of ongoing monetary and fiscal reforms. The CBN Deputy Governor for Economic Policy, Mohammed Sadi Abdullahi, added that Nigeria's current account surplus reached over $17 billion in 2024 and is projected to exceed $20 billion in 2025, driven by increased oil production, diversified exports, manufacturing recovery, reduced fuel imports, and strong remittance inflows. He noted that the CBN has been rebuilding reserves, releasing about $13 billion to local and international banks while ensuring steady FX inflows and improved liquidity. Read also, CBN reforms deepen FX stability, lift investor confidence APPLY NOW: Customer Service Representative APPLY NOW: Information Technology Support Seyi Tinubu launches digital upskilling program for SMEs NBS: Inflation slows to 18.02% offering relief to SMEs Meanwhile, Special Adviser to the President on Finance and the Economy, Sanyade Okoli, outlined the government's focus on inclusive growth, job creation, infrastructure investment, and improved access to finance to support productive sectors, especially SMEs. At the same meetings, Tony Elumelu, Chairman of Heirs Holdings and UBA Group, urged African leaders to mobilise $4 trillion in domestic capital to fund investments in digital infrastructure, power, and innovation. In a related development, the International Monetary Fund (IMF), in its October 2025 Fiscal Monitor, said Nigeria's fiscal outlook is improving but urged for greater fiscal discipline and stronger revenue mobilisation. The IMF projected Nigeria's public debt-to-GDP ratio to stabilise around 41% between 2027 and 2030, commending recent reforms in tax administration, expenditure control, and social investment efficiency. Analysts say the CBN's sustained reforms and the government's fiscal coordination are creating a more predictable environment for SMEs, investors, and exporters, which could help attract new investments into the real economy.

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