Experts task banks on CAMA, integrity in insolvency practice
By Rukayat Moisemhe
Insolvency experts have called on banks and practitioners to align loan agreements and practices with the rescue provisions of the Companies and Allied Matters Act (CAMA) 2020.
Mr Albert Folorunsho, the Vice President, Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), made the call at BRIPAN annual conference gala night on Friday in Lagos.
Folorunsho noted that banks were still used to provisions under the old law that allowed appointment of receivers or receiver-managers to sell or manage distressed companies.
He, however, stated that CAMA 2020 introduced administration as a rescue mechanism.
Folorunsho stressed that banks must make adequate provisions in loan agreements to empower them to appoint administrators rather than limit recovery to receivership and liquidation.
He also urged the association’s newly inducted members to demonstrate the highest level of integrity, continuous learning, and the adoption of modern tools such as Artificial Intelligence (AI) in managing distressed businesses.
“Insolvency practitioners must uphold a high level of integrity, continuous learning, and fiduciary responsibility to not only creditors but also debtors, shareholders, and, in some cases, the courts.
“They must understand that appointment as a receiver, manager, or administrator does not make them owners of the company.
“They are agents of their appointers, and their duty of care extends to all stakeholders,” he said.
Folorunsho said the two-day conference had achieved its objectives.
According to him, the conference judicial roundtable addressed contentious insolvency issues, cross border insolvency issues, the role of AI in insolvency practice among others.
“AI could be deployed to analyse large data sets, predict early signs of company distress, and enable timely interventions through company voluntary arrangements or administration rather than liquidation.
“With AI-driven deep learning and data analysis, insolvency practitioners can evaluate business risks more accurately and adopt rescue strategies before companies collapse,” he said.
Also speaking, BRIPAN President, Mr Chimezie Ihekweazu, noted that the inductees were joining at a time when Nigeria is repositioning its insolvency framework under CAMA 2020.
Ihekweazu, a Senior Advocate of Nigeria, said the Act moved practitioners beyond the old tradition of mere receivership and liquidation into a more progressive rescue culture.
He told the inductees: “As you step into this field, remember: integrity is your greatest asset and the power you hold must be exercised with humility, professionalism, and fairness.
“Knowledge is also key as this profession demands continuous learning.
“I charge you, therefore, to embrace lifelong learning, uphold the highest ethical standards, and see yourselves as custodians of economic value.”
The News Agency of Nigeria (NAN) reports that the induction formed part of activities lined up for the association’s 2025 international conference in Lagos.
103 professionals were inducted into the institute while 10 others were elevated to fellowship level.(NAN)
Edited by Chinyere Joel-Nwokeoma
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