The Federal High Court of Nigeria has introduced an Insolvency Unit to enhance and modernize insolvency proceedings in the country.
This initiative, led by the court’s Chief Judge, Hon. Justice John Terhemba Tsoho, aligns with efforts to ensure that legal frameworks effectively address evolving financial and corporate challenges.
In a statement issued on Monday, the Court’s Chief Registrar, Mr. Sulaiman Amida Hassan, confirmed that the unit was created under the authority of key legislation, including the Companies and Allied Matters Act, 2020; the amended Assets Management Corporation of Nigeria Act, 2019; the Nigeria Deposit Insurance Corporation Act, 2024; and the Bankruptcy Act, Laws of the Federation of Nigeria, 2010.
The Insolvency Unit is tasked with overseeing the enforcement of laws concerning Company Voluntary Arrangements, Administration, Receivership, Winding Up, and corporate restructuring.
According to the statement, its establishment follows global best practices and aims to deliver specialized, standardized services in insolvency matters.
Additionally, the unit will provide a dedicated channel for insolvency practitioners, ensuring efficient supervision and enforcement processes.
“This is a milestone in the quest for modernization and updating Insolvency practice and proceedings in Nigeria,” the statement noted.
Furthermore, it emphasized that the unit will “offer fast-track services required in the implementation of its mandate,” ensuring efficiency in handling insolvency-related cases.
