Currently, the Nigerian corporate insolvency regime is restricted, generally, to receivership, liquidation and arrangement and compromise mechanisms as provided under the Companies and Allied Matters Act, 1990. Recognising the need to promote business rescue as well as create enabling conditions for investment and improve the ease of doing business in Nigeria, the National Assembly passed the Companies and Allied Matters (Repeal and Re-enactment) Bill (“the Bill”) which is now awaiting presidential assent. The Bill seeks to bridge the gap in the existing legal framework for corporate insolvency by introducing a series of reforms.
In this article, Perenami Momodu (Senior Associate) and Odinaka Okoye (Associate) examine the proposed reforms. They opine that these reforms will create and ensure confidence in the insolvency regime in Nigeria by reducing the risk of corporate insolvency, boost foreign investment and ensure that the Nigerian corporate insolvency regime is in line with international best practices.
