The Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) has called for urgent passage of the Insolvency Bill, which aims to bring much-needed updates on insolvency practice in the country.

The president of BRIPAN, Chimezie Ihekweazu, said this at the association’s event held in Abuja on Thursday.

Insolvency law is the set of rules that helps indebted individuals or businesses find a way to settle what they owe or start fresh.
It provides options like debt restructuring or asset sale to repay creditors fairly and organised.

According to Mr Ihekweazu, Nigeria’s personal insolvency laws are stuck in the past, relying on an old Bankruptcy Act, while corporate insolvency has moved forward with modern reforms.

Mr Ihekweazu emphasised the urgent need for the passage of the Insolvency Bill, a reform championed by the association. He said the bill was successfully passed by the House of Representatives but stalled in the Senate during the last legislative session.

“The proposed insolvency bill, which BRIPAN has championed, seeks to address this imbalance. While the bill successfully passed the House of Representatives in its last iteration, it stalled in the Senate. Renewed efforts are now underway to refine and reintroduce the legislation.

“The bill’s implementation will provide much-needed support for small and micro-businesses, fostering their growth and ensuring economic sustainability,’’ he said.

The BRIPAN president said the event served as a platform for professionals to share insights and reflect on the evolution of insolvency practice in Nigeria.

He outlined various options within the insolvency framework, including receivership, administration, and company voluntary arrangements. According to him, these mechanisms are designed to rescue businesses facing financial difficulties rather than pushing them into outright liquidation.

He reiterated the importance of restructuring agreements that balanced creditors’ interests while ensuring a pathway for businesses to recover.

Mr Ihekweazu recounted a case where a receiver manager failed to submit proper accounts after concluding an assignment, prompting an inquiry by the Corporate Affairs Commission.

He urged practitioners to maintain meticulous documentation and seek court clarifications when faced with uncertainties, adding that adherence to regulatory standards was non-negotiable.

He encouraged practitioners to contribute to professional journals like the BRIPAN Journal, which had become a vital resource for advancing knowledge in the field.

Phillip Umeh emphasised the critical role of foundational knowledge in excelling at insolvency practice.

“To be a good insolvency practitioner, first and foremost, you must have a sound knowledge of company law,” he said.

Mr Umeh emphasised the importance of understanding the Companies and Allied Matters Act (CAMA) and related case laws.

“You cannot anchor insolvency knowledge without that foundation,” he added.

(NAN)