Chief Judge Introduces Insolvency Unit

The Chief Judge of the Federal High Court, John Tsoho, has taken a significant step toward improving insolvency proceedings in Nigeria. He has established an Insolvency Unit to ensure faster and more efficient handling of debt-related cases.

A Step Towards Better Insolvency Management

The Chief Registrar, Sulaiman Hassan, announced this development in a statement on Sunday in Abuja. He explained that the new unit was created in line with the provisions of several key laws, 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 of 2010.

Hassan highlighted that the unit’s primary role is to oversee the proper implementation of these laws. It will handle cases related to Company Voluntary Arrangements (CVA), administration, receivership, winding up, and corporate restructuring.

Enhancing Efficiency in Debt Cases

This initiative aligns with global best practices in insolvency management. The unit will provide specialized services, ensuring a standardized approach to handling financial distress cases. It also offers a dedicated channel for insolvency practitioners to access supervisory and enforcement support.

According to Hassan, this is a major milestone in modernizing Nigeria’s insolvency framework. The new unit will help speed up processes, making it easier for businesses to navigate financial difficulties and restructuring procedures.

A Modern Approach to Insolvency

With this move, the Federal High Court is improving the efficiency of insolvency proceedings in Nigeria. The dedicated unit will play a crucial role in ensuring businesses and financial institutions have a structured system to handle debt-related challenges. This reform is expected to enhance investor confidence and strengthen the country’s financial sector.