The House of Representatives has expressed commitment to supporting reforms that will expand access to finance for small and medium enterprises (SMEs) while strengthening protection for bank customers against fraudulent withdrawals.
Chairman of the House Committee on Banking Regulations, Mohammed Bello El-Rufai, disclosed this during a public hearing on two financial bills before the House, one seeking to regulate factoring and receivables financing businesses, and another proposing amendments to the Banks and Other Financial Institutions Act (BOFIA) 2020.
El-Rufai said the proposed legislations demonstrate the House’s resolve to build a transparent and accountable financial system that promotes business growth and safeguards consumer rights. He explained that the first bill aims to regulate factoring and receivables financing, allowing businesses to use unpaid invoices as collateral to access funding, while the second bill seeks to amend BOFIA to strengthen protection for victims of fraudulent bank transactions.
He noted that the reforms are designed to enhance trust, transparency, and stability within Nigeria’s banking sector in line with international best practices
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The committee chairman also urged key regulators, including the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the Nigerian Export-Import Bank (NEXIM), to contribute to shaping effective and practical legislation that meets the needs of both businesses and consumers.
El-Rufai commended the sponsors of the bills for their efforts to improve consumer protection and strengthen financial integrity.
Also speaking at the hearing, Kaduna State Governor, Senator Uba Sani, represented by his Special Adviser on Research, Documentation,and Strategy, Fabian Okoye, called for transformational laws that would deepen access to finance and enhance productivity across the economy. He emphasized the importance of transparency and a balanced legal framework to protect SMEs from predatory practices while ensuring alignment with existing financial regulations.
