In a landmark development, the Chief Judge of the Federal High Court, Justice John Tsoho, has announced the creation of an Insolvency Unit aimed at streamlining the debt recovery process in Nigeria.
This new initiative, as confirmed by the court’s Chief Registrar, Sulaiman Hassan, is designed to enhance the efficiency of insolvency proceedings and provide specialized services in line with global standards.
The creation of the Insolvency Unit aligns with key legal frameworks, including the Companies and Allied Matters Act (CAMA) 2020, the Assets Management Corporation of Nigeria (AMCON) Act 2019 (as amended), the Nigeria Deposit Insurance Corporation (NDIC) Act 2024, and the Bankruptcy Act, 2010.
Hassan explained that the unit’s primary role is to oversee the proper implementation of these laws, particularly in areas such as Company Voluntary Arrangements (CVA), Administration, Receivership, Winding Up, and various restructuring processes.
The unit will also offer fast-track services to accelerate debt recovery and business turnaround initiatives.
“This move is a significant step towards modernizing Nigeria’s insolvency practices,” Hassan said. “The Insolvency Unit will provide a dedicated platform for insolvency practitioners, ensuring efficient supervision, enforcement, and a standardized approach to handling complex insolvency matters.”
This bold initiative is expected to position the Federal High Court at the forefront of insolvency proceedings, offering greater transparency, accountability, and professionalism to Nigeria’s business environment.
