Reps move to deepen access to finance, protect bank customers with new financial bills

By Gift Chapi-Odekina, Abuja

The House of Representatives Committee connected Banking Regulations has held a nationalist proceeding connected 2 captious bills aimed astatine strengthening Nigeria’s fiscal system, expanding entree to concern for tiny and mean enterprises (SMEs), and protecting slope customers from fraudulent activities.

The nationalist hearing, chaired by Hon. Mohammed Bello El-Rufai, took spot connected Thursday successful Abuja and focused connected 2 projected legislations:

A Bill to Regulate Factoring, Purchase of Receivables, and the Establishment, Operation, and Control of Factoring and Receivables Financing Businesses (HB. 516), and

A Bill to Amend the Banks and Other Financial Institutions Act (BOFIA) 2020 (HB. 1160).

In his opening remarks, El-Rufai said the bills are portion of the Committee’s efforts to beforehand a stronger, much transparent, and consumer-friendly fiscal sector.

“The archetypal Bill seeks to deepen entree to concern for SMEs, beforehand liquidity, and align Nigeria’s ineligible model with planetary champion practices successful commercialized finance,” helium said.

He added that the 2nd Bill, sponsored by Hon. Moses Oluwatoyin Fayinka, seeks to heighten accountability successful the banking assemblage and support victims of fraudulent withdrawals.

“Both bills stock a communal extremity — enhancing trust, transparency, and stableness successful our fiscal ecosystem,” El-Rufai noted, urging stakeholders to collaborate to nutrient laws that are effectual and fair.

Representing Kaduna State Governor Senator Uba Sani, his Special Adviser connected Research, Documentation and Strategy, Mr. Fabian Okoye, described the Factoring and Receivables Financing Bill arsenic a transformative argumentation instrumentality susceptible of boosting liquidity and energizing Nigeria’s productive sectors.

Sani, who sponsored a akin measure successful the 9th Senate, explained that factoring enables businesses to person their receivables into contiguous cash, helping them prolong operations and grow production.

“Many Nigerian enterprises present goods and services connected recognition but hold months earlier being paid. Factoring provides a applicable solution — enabling them to rise currency against those receivables,” helium said.

He emphasized the value of transparency and regulatory oversight to support tiny businesses from predatory practices and called for alignment with existing laws specified arsenic the Secured Transactions successful Movable Assets Act, the Companies and Allied Matters Act, and applicable CBN regulations.

Governor Sani commended Speaker Hon. Tajudeen Abbas for his enactment successful promoting economical betterment bills and praised El-Rufai’s Committee for its enactment successful strengthening fiscal regulation.

“When passed, this Bill volition not lone grow entree to concern but besides foster innovation, trim the outgo of credit, and beforehand sustainable economical growth,” helium added.

The nationalist proceeding attracted representatives of large 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 members of the organized backstage assemblage specified arsenic NACCIMA and NASME.

The 2 bills volition acquisition further legislative reappraisal based connected stakeholder input earlier being presented for 3rd speechmaking and transition by the House.

The station Reps determination to deepen entree to finance, support slope customers with caller fiscal bills appeared archetypal connected Vanguard News.