The Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) has called for urgent passage of the Insolvency Bill, which aims to bring much-needed updates on insolvency practice in the country.
The President of BRIPAN, Chimezie Ihekweazu, a Senior Advocate of Nigeria (SAN), said this at the association’s maiden “Members’ Night Out” in Abuja on Thursday.
The News Agency of Nigeria (NAN) reports that Insolvency law is the set of rules that helps indebted individuals or businesses to find a way to either settle what they owe or start fresh.
It provides options like debt restructuring or sale of assets to repay creditors in a fair and organised manner.
According to Ihekweazu, Nigeria’s personal insolvency laws are stuck in the past, relying on an old Bankruptcy Act, while corporate insolvency has moved forward with modern reforms.
He emphasised the urgent need for the passage of the Insolvency Bill, a reform championed by the association.
He said that the bill was successfully passed by the House of Representatives but stalled in the Senate during the last legislative session.
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“The proposed insolvency bill, which BRIPAN has championed, seeks to address this imbalance.
“While the bill successfully passed the House of Representatives in its last iteration, it stalled in the Senate.
“Renewed efforts are now underway to refine and reintroduce the legislation.
“The bill’s implementation will provide much-needed support for small and micro-businesses, fostering their growth and ensuring economic sustainability,’’ he said.
The BRIPAN president said that the Members’ Night Out served as a platform for professionals to share insights and reflect on the evolution of insolvency practice in Nigeria.
He outlined various options within the insolvency framework, including receivership, administration, and company voluntary arrangements.
According to him, these mechanisms are designed to rescue businesses facing financial difficulties rather than pushing them into outright liquidation.
He reiterated the importance of restructuring agreements that balanced creditors’ interests while ensuring a pathway for businesses to recover.
Ihekweazu recounted a case where a receiver-manager failed to submit proper accounts after concluding an assignment, prompting an inquiry by the Corporate Affairs Commission.
He urged practitioners to maintain meticulous documentation and seek court clarifications when faced with uncertainties, adding that adherence to regulatory standards was non-negotiable.
He encouraged practitioners to contribute to professional journals like the BRIPAN Journal, which had become a vital resource for advancing knowledge in the field.
Also speaking, Mr Phillip Umeh, also a Senior Advocate of Nigeria (SAN), emphasised the critical role of foundational knowledge in excelling at insolvency practice.
“To be a good insolvency practitioner, first and foremost, you must have a sound knowledge of company law,” he said.
Umeh emphasised the importance of understanding the Companies and Allied Matters Act (CAMA) and related case laws.
“You cannot anchor insolvency knowledge without that foundation,” he added.
Mr Olukayode Enitan, SAN, restated the importance of versatility and continuous learning in legal practice.
“Be an expert in one area, but it is better to be available to everyone that knocks on the door,” he said.
Reflecting on his diverse practice areas, Enitan shared how dedication and adaptability helped in shaping his career.
“Law is very good, and there are diverse areas. To master them, you must commit to burning the candle on both ends.
“Embrace hard work and determination. Accountability remains a cornerstone of effective insolvency practice,’’ he said.
He also emphasised the value of relationships and humility in professional growth.
“You are not a competition to your colleagues; you are a complement, thus the need for collaboration.
“Eat humble pie when you have to because today’s humility is tomorrow’s opportunity to dine at the big table,’’ he said.
The members’ night out exemplified the association’s commitment to fostering a collaborative and informed community, ready to explore the complexities of financial distress with integrity and innovation.
