Federal High Court launches insolvency unit

The Federal High Court of Nigeria has established an Insolvency Unit to modernise and update insolvency practice and proceedings in the country.

The unit was created by the Chief Judge of the court, Justice John Tsoho, as part of concerted efforts to ensure that the court meets the expectations of all aspects of the law in the country.

A statement by the Court’s Chief Registrar, Mr Sulaiman Amida Hassan, on Monday explained that the creation of the unit was done pursuant to the provisions of the Companies and Allied Matters Act, 2020; the Asset Management Corporation of Nigeria (AMCON) Act, 2019 (as amended); the Nigeria Deposit Insurance Corporation (NDIC) Act, 2024; and the Bankruptcy Act, Laws of the Federation of Nigeria, 2010.

He stated that the functions of the Insolvency Unit are to oversee the effective implementation of the provisions of these enactments as they relate to Company Voluntary Arrangements (CVA), Administration, Receivership, Winding-Up, and various forms of company restructuring.

According to the statement, the unit was established in line with global best practices on insolvency and aims to provide specialised and standardised services on insolvency matters.

The unit will also offer insolvency practitioners a dedicated channel for supervisory and enforcement services.

The statement further noted: “This is a milestone in the quest for modernisation and the updating of insolvency practice and proceedings in Nigeria. The unit will also offer fast-track services required for the implementation of its mandate.”

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