House of Representatives

The Debtor’s Trident: The Prospective Business Rescue Proceedings in the Nigerian Insolvency Framework

Ultimately, the proposed Nigerian business rescue proceedings offer both a tool to restructure the company, as well a potentially potent weapon that can be used by the debtor to retain control till value in the company is depleted. It is important that the government limits the opportunities for debtors to ‘weaponise’ a tool that ought to be used to the benefit of the stakeholders as a group by urgently revising the procedure to limit the control rights allocated to the debtor before presidential assent is given to the bill. Finally, the government must provide resources to effectively translate the new approach to insolvency into  practice.