Business recovery practitioners, Federal High Court partner on insolvency

Magdalene Ukuedojor
Apr, Mon, 2025

Judiciary

Business recovery practitioners, Federal High Court partner on insolvency

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By Wandoo Sombo

The Business Recovery and Insolvency Practioners Association of Nigeria (BRIPAN) is collaborating with the Federal High Court to improve the efficiency of insolvency procedures in the country.

The President of the association, Mr Chimezie Ihekweazu, SAN, made this known on Monday in Abuja when he led members of BRIPAN on a visit to the Chief Judge (CJ) of the court, Justice John Tsoho.

Ihekweazu said that the collaboration is aimed at enhancing business recovery administration.

He said that the association had been looking for ways to bring ailing companies back to life adding that the step the court took in establishing a solvency unit was a breath of fresh air as it would go a long way in ensuring the survival of businesses.

“Businesses should not be allowed to fail or to be liquidated but when insolvency sets in, options are provided not only for the debtors but also for the creditors as well as the regulatory institutions and those who have interest in most of the businesses.

“To explore the administration of those options with the aim of bringing those companies back to life with a view to dealing with their insolvency challenges and the profitability.

“So we are excited that the federal high court has taken this up,” he said.

Speaking, Justice Tsoho said that the issue of insolvency was a global one and Nigeria could not afford to lag behind in tackling it.

He said it was a critical aspect of the law that had to do with the economy and so it must be given every attention it deserved.

“The visit is a commendable move to promote the practice of insolvency which before now was not so well regulated and it is a critical aspect of law as it has to do with the economy of the country.

“If not well regulated, it has some kind of negative impact and so the court thought it wise to set up an insolvency unit in compliance and conformity with the Company and Allied Matters Act because they require that there should be a unit that will regulate insolvency practice.

“The unit will also ensure international best practices because the issue of insolvency is global and so Nigerians cannot be lagging behind or doing something that is quite different from what the rest of the world is doing.

“So that is a key point which BRIPAN appreciates and that is the essence of their visit because they are excited about the development because it will greatly improve the practice of insolvency which looks into company matters.

“Like when a company has to go to receivership and the emphasis really is that companies that are going under should still be managed that they just don’t die out.

“But what has prevailed in the past is that once you have a troubled company, people are more interested in rushing at the assets and once it rounds up there are devastating effects.

“People lose jobs and it creates a lot of economic crisis so that is the essence of this meeting.”

The News Agency of Nigeria (NAN) reports that insolvency, in a legal context, is the inability of a person or company to pay debts that have become due.

Insolvency law provides a legal framework for dealing with the financial affairs of individuals and companies who are unable to pay their debts that have become due.

NAN also reports that the Federal High Court created an insolvency unit to oversee the effective implementation of the provisions of the enactments as they relate to Company Voluntary Arrangements (CVA), Administration, Receivership, Winding Up and various forms of restructuring of companies.

The unit would also offer insolvency practitioners a dedicated channel for supervisory and enforcement services.

It is also expected to offer fast-track services required in the implementation of its mandate. (NAN)(www.nannews.ng)

Edited by Sadiya Hamza

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