In a strategic move aimed at strengthening Nigeria’s insolvency framework, the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) has initiated a partnership with the Federal High Court to foster more efficient and globally aligned insolvency practices.
The President of BRIPAN, Mr. Chimezie Ihekweazu, SAN, disclosed this during a courtesy visit to the Chief Judge of the Federal High Court, Hon. Justice John Tsoho, at the Court’s headquarters in Abuja. The collaboration, he said, is a deliberate effort to ensure the revitalization of struggling businesses and to strengthen Nigeria’s business recovery landscape.
Ihekweazu highlighted the association’s commitment to identifying sustainable solutions for companies facing insolvency, emphasizing that the survival of businesses is vital not just for debtors but also for creditors, regulatory agencies, and other stakeholders within Nigeria’s economic ecosystem.
“Businesses should not simply collapse or be liquidated at the first sign of insolvency,” he noted. “There are always options available to address these challenges, and it is our hope that this partnership with the Federal High Court, especially following the establishment of the insolvency unit, will significantly enhance business recovery processes in the country.”
In response, Justice Tsoho welcomed the initiative, stressing that the insolvency sector, if properly regulated and structured, could serve as a stabilizing mechanism for the Nigerian economy, especially during periods of economic uncertainty.
“Insolvency is a global issue. In many jurisdictions, it is a central component of economic resilience. Nigeria cannot afford to lag behind in this regard,” Tsoho said. He explained that the Federal High Court’s decision to establish a dedicated insolvency unit was inspired by the need to align the court’s processes with the provisions of the Companies and Allied Matters Act (CAMA) and international best practices.
Justice Tsoho noted that the insolvency unit will not only regulate and monitor insolvency cases but also help mitigate the economic fallout caused by hasty asset liquidation. “Our aim is to avoid scenarios where troubled companies are immediately dismantled, which often leads to job losses, financial instability, and broader economic hardship.”
Legallinkz reports that the Federal High Court’s insolvency unit is designed to oversee the legal processes related to Company Voluntary Arrangements (CVAs), Administration, Receivership, Winding Up, and various forms of corporate restructuring.
- Additionally, the unit offers insolvency practitioners a dedicated supervisory channel, streamlining the enforcement of insolvency provisions while promoting timely interventions and efficient case management. The establishment of this unit represents a forward-thinking reform intended to improve investor confidence, secure jobs, and position Nigeria’s insolvency practices in line with global standards.
Insolvency law provides an essential framework for businesses and individuals unable to meet their financial obligations, allowing for structured debt resolution, creditor protection, and business rehabilitation where possible. The partnership between BRIPAN and the Federal High Court is expected to enhance these outcomes and deepen institutional collaboration in Nigeria’s insolvency sector.
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