Legal experts have called for the integration of Alternative Dispute Resolution (ADR) into the nation’s insolvency framework to ease the burden on courts and enhance corporate rescue mechanisms.

They made the call at the judicial roundtable of the two-day annual conference of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) on Friday in Lagos.

Justice Onyekachi Otisi, Court of Appeal, said Nigeria’s insolvency law was statutorily comprehensive but procedurally weak due to heavy reliance on overburdened courts.

She explained that ADR could play a vital role in pre-insolvency negotiations and restructuring, while courts retained the responsibility of legitimising, supervising, and enforcing outcomes.

She said that Nigeria could borrow lessons, but must adapt to local institutional capacity.

“Courts remain central and cannot be displaced in insolvency, but ADR could complement them in appropriate contexts.

“I would strongly recommend that ADR be used for pre-insolvency negotiations and restructuring, while the courts be for legitimising, supervising, and enforcing outcomes and I advocate a policy direction in this regard.

“I believe that with clear rules and maintaining professional standards, BRIPAN is in a good position to advise or guide on how ADR can be integrated into insolvency resolutions,” the justice said.

She stated that should this be achieved, Nigeria could build a more efficient, credible, and economically resilient insolvency system, making it more attractive to investors.

Justice Alexander Owoeye of the Federal High Court, Nigeria, said that upon passing into law the Companies and Allied Matters Act (CAMA) 2020, two new rescue procedures were introduced.

He said they were Company Voluntary Arrangements (CVA) and Administration.

He stressed that insolvency matters were often time-sensitive and recommended closer collaboration between BRIPAN and the judiciary to fast-track corporate rescue processes.

“I also recommend special insurgency training for Nigerian judges on the intricacies involved in corporate rescue mechanisms,” he said.

Kabiito Karamagi, managing partner, Ligomarc Advocates Kampala, Uganda, stressed the need for stronger cross-border cooperation in handling insolvency cases to protect creditors and reduce the rising cost of business rescues in Africa.

He noted that the absence of coordination often led to mistrust, duplication, and poor recovery outcomes for stakeholders.

Mr Karamagi called for frameworks that respected national sovereignty while avoiding conflicting judgments and ensuring smoother administration of cross-border insolvencies.

(NAN)