There is no single insolvency Act in Nigeria. Corporate insolvency in Nigeria was primarily regulated by the Companies and Allied Matters Act 19901(“the Repealed Act”), the Companies Winding up Rules 2010, and other sectorial legislations where the insolvent company is in a regulated industry such as financial institutions and Telecommunication Companies. On the 7 August 2020, President Muhammadu Buhari assented to the Companies and Allied Matters Act 2020 (“CAMA 2020” or the “Act”) which replaced the Repealed Act. This paper examines the extant corporate insolvency regime in Nigeria in the light of the innovation and appraises the effects of the innovative provisions. This paper concludes that promulgation of the CAMA 2020 is a laudable step towards the system of business rescue and restructuring, compared to the outdated liquidation procedure in Nigeria vis-à-vis other developed jurisdictions. It also makes recommendations to improve the corporate insolvency proceedings regime.
Keywords: Corporate Insolvency, Insolvency, Liquidation, Business Rescue, Debt Recovery, Receiver, Administrator, Company Voluntary Arrangement, Netting.
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UNILAG Law Review, (2021) Volume 4 Edition 2
About the Author
Onigbinde Halimat Bolu is an Associate of Oluwakemi Balogun LP, a leading insolvency law firm in Nigeria. She can be contacted via email: firstname.lastname@example.org.