Abuja: The Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) is collaborating with the Federal High Court to improve the efficiency of insolvency procedures in the country. The President of the association, Mr. Chimezie Ihekweazu, SAN, made this known on Monday in Abuja when he led members of BRIPAN on a visit to the Chief Judge (CJ) of the court, Justice John Tsoho.

According to News Agency of Nigeria, the collaboration aims to enhance business recovery administration. Ihekweazu stated that the association had been exploring ways to revive struggling companies. He noted that the court’s initiative in establishing a solvency unit would significantly contribute to the survival of businesses. The unit is designed to offer options not only for debtors but also for creditors, regulatory institutions, and other stakeholders involved with these businesses.

Justice Tsoho highlighted that insolvency is a global issue and emphasized the importance of Nigeria actively addressing it. He remarked that insolvency is a critical legal aspect impacting the economy, deserving focused attention. He praised the visit as a positive step toward promoting an organized practice of insolvency, which has not been adequately regulated in the past.

The News Agency of Nigeria reports that insolvency, legally defined, is the inability of an individual or company to pay outstanding debts. Insolvency law provides a framework for managing the financial affairs of those unable to settle their due debts. The Federal High Court’s insolvency unit will oversee implementing provisions related to Company Voluntary Arrangements (CVA), Administration, Receivership, Winding Up, and various restructuring forms.

The unit is expected to provide insolvency practitioners with a dedicated channel for supervisory and enforcement services and fast-track services required to implement its mandate.