Strengthening the Regulatory and Institutional Framework Governing Insolvency Practice in Nigeria

Abstract

This article examines the current regulatory and institutional framework, highlights key deficiencies, and proposes strategic recommendations to strengthen Nigeria’s insolvency system. The regulatory framework governing insolvency practice in Nigeria has witnessed notable progress with the enactment of the Companies and Allied Matters Act (CAMA) 2020 and the Insolvency Regulations 2022. These legislative advances have laid important groundwork for modernizing insolvency procedures and professionalizing practice. However, significant gaps and challenges persist, including fragmented laws, limited practitioner regulation, inadequate judicial capacity, and the absence of a cross-border insolvency regime.  Effective reforms will enhance insolvency resolution, promote business rescue, protect stakeholders' interests, and support broader economic stability and growth.