NEXIM Adviser Hails Factoring Law for Working Capital Boost

NEXIM adviser Yongo highlighted the potential of the factoring law to enhance businesses’ access to working capital. The proposed legislation aims to establish a legal framework that supports factoring transactions, ensuring clarity for all parties involved.

The national assembly approved the factoring, assignment and receivables financing bill in June, marking a significant step toward implementing the law. This development is expected to encourage more financial institutions to offer receivables-based financing options.

Yongo addressed the topic at a virtual event hosted by Capsa Technology, where he discussed how Nigeria’s factoring law could improve working capital management. Factoring allows businesses to sell unpaid invoices to financiers for immediate cash, bypassing the need to wait for customer payments.