Afreximbank, FCI welcome Nigeria Senate’s passage of factoring bill to support SMEs and boost Intra-African Trade

Cairo, Egypt, 25 June 2026: African Export-Import Bank (Afreximbank) has welcomed the passage of the Factoring, Assignments and Receivables Financing Bill, 2026, by the Senate of the Federal Republic of Nigeria.

This milestone follows more than a decade of technical support and sustained advocacy from Afreximbank, the Nigerian Export Import Bank (NEXIM) the Nigerian Factoring Working Group and other partners, notably FCI. Afreximbank's Factoring Model Law was used as a guide for the development of the Bill, reflecting the Bank's Factoring Strategy, which aims to provide legal and regulatory support to African countries pursuing factoring as an alternative financing solution.

The passage of the Bill creates a facilitative legal environment for factoring to thrive in Nigeria and will support small and medium-sized enterprises (SMEs) with access to an additional form of trade financing. The development follows similar legislative progress in Egypt, the Republic of Congo, Mali, Togo, Cote D'Ivoire, Niger and Burkina Faso. It represents a crucial milestone in the broader African effort to increase its share of global factoring transactions, which currently stands at around 1%, while also supporting the expansion of Intra-African Trade under the African Continental Free Trade Area (AfCTFA). Nigeria's progress is also expected to encourage other African countries to adopt and domesticate similar legal frameworks.

Factoring provides a solution to help address the financing gap, particularly for SMEs, by offering an alternative trade finance instrument to African businesses. Having a robust legal framework that supports factoring will provide a major boost to the emergence and growth of SMEs and factoring companies in Nigeria and beyond. By creating a legal infrastructure which supports the diversification of SME financing, while providing credibility and assurance to investors, the Bill is expected to improve access to finance for historically underserved small and medium sized businesses in Nigeria.

Supporting the development of legal and regulatory frameworks for factoring is one of the key pillars of Afreximbank's Factoring Strategy. This and other pillars of the strategy are implemented by the Bank's Factoring Working Group, headed by Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development, Afreximbank.

Commenting on the passage of the Factoring, Assignments and Receivables Financing Bill, Ms. Awani noted that:

"Strengthening the legal environment and financial regulations is the bedrock to any sustainable financial ecosystem. The Factoring Bill will provide the requisite enabling environment for factoring and supply chain finance to thrive by making receivables easily assignable as effective security for financing. We expect this to support an uptick in factoring volumes which in turn will unlock the potential of SMEs and strengthen their ability to maximise the vast opportunities presented by the Nigerian market.

Also speaking on the impacts the adoption of the Factoring Law in Nigeria and across Africa, Ms. Betul, Deputy Secretary General of FCI said:

"The adoption of this legislation represents an important milestone for the development of receivables finance in Nigeria. A strong legal framework is a key foundation for building market confidence and enabling SMEs to convert receivables into working capital. However, legislation alone is not enough. To fully unlock the potential of factoring and supply chain finance, continued efforts will also be needed in market education, capacity building, digital infrastructure and the development of practical financing solutions. Nigeria has taken an important step forward, and we believe this progress can serve as an example for other African markets seeking to expand access to finance for SMEs and support intra-African trade."

(Ends)

About Afreximbank

African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade. For over 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa's trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa. A strong supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank has set up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2025, Afreximbank's total assets and contingencies stood at over US$48.5 billion, and its shareholder funds amounted to US$8.4 billion. Afreximbank has investment grade ratings assigned by China Chengxin International Credit Rating Co., Ltd (CCXI) (AAA), GCR (A), Japan Credit Rating Agency (JCR) (A-), Moody's (Baa2) and S&P Global Ratings (BBB+). The Bank is headquartered in Cairo, Egypt.

For more information, visit: https://www.afreximbank.com

About FCI

FCI is the Global Representative Body for Factoring and Financing of Open Account Domestic and International Trade Receivables. FCI was set up in 1968 as a non-profit global association. With today close to 400 member companies in more than 90 countries, FCI offers a unique network for cooperation in cross-border factoring. Member transactions represent nearly 60% of the world's international correspondent factoring volume.

FCI is a non-exclusive organisation, open to any company which is providing Factoring Services or plans to set up Factoring Activities but also to service providers to the industry.

FCI offers three major areas of activities:

• CONNECT: the Business network supports cross-border factoring activities through which its members cooperate as export and import factors
• EDUCATE: FCI promotes and develops best practices in both domestic and international factoring and related Open Account Finance products
• INFLUENCE: FCI promotes and defends the Industry with stakeholders and policy makers worldwide

https://www.fci.nl | [email protected]

Media contacts

Afreximbank: Vincent Musumba, Communications and Events Manager (Media Relations)

Email: [email protected]

FCI: Ms. Tanya Naysmith, Senior Marketing Officer,

Email: [email protected]