The Federal High Court of Nigeria has taken a major step to improve insolvency proceedings by creating a dedicated Insolvency Unit. This new unit aims to modernize how businesses handle financial distress and restructuring.
The Chief Judge of the court, Hon. Justice John Terhemba Tsoho, established the Insolvency Unit to ensure the legal system meets current business and financial needs.
The unit is based on various laws, including the Companies and Allied Matters Act, 2020, the AMCON Act, 2019, the NDIC Act, 2024, and the Bankruptcy Act, 2010.
The Insolvency Unit will oversee and enforce insolvency laws, including:
- Company Voluntary Arrangements (CVA)
- Administration and Receivership
- Winding Up of companies
- Business restructuring
This unit follows global best practices and will provide specialized services for insolvency cases. It also offers a dedicated channel for insolvency practitioners, making supervisory and enforcement procedures more effectively.
Benefits of the New Unit
- Faster and more efficient insolvency proceedings
- Better support for companies undergoing restructuring
- Improved enforcement of insolvency laws
- More standardized procedures for legal practitioners
The Federal High Court sees this as an important step in updating Nigeria’s legal system to support businesses better. With this new unit, insolvency cases can be handled more effectively, benefiting companies, legal professionals, and the economy as a whole.
