Commercial Law

Federal High Court Introduces Insolvency Unit

Ogunsakin Mustapha
Ogunsakin Mustapha
2 Min Read
Justice John Terhemba Tsoho

By Hassanat Adebowale

The Chief Judge of the Federal High Court (FHC), Justice John Tsoho, has established an Insolvency Unit within the court system to enhance service delivery and streamline insolvency-related cases. This was disclosed by the Chief Registrar of the FHC, Sulaiman Hassan, in a statement released on Sunday in Abuja.

According to Hassan, the creation of the unit is in accordance with key legislative 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, Laws of the Federation of Nigeria, 2010.

“The functions of the Insolvency Unit are to oversee the effective implementation of the provisions of the above enactments as it relates to Company Voluntary Arrangements (CVA), Administration, Receivership, Winding Up, and various forms of restructuring of companies,” Hassan explained.

He further noted that the unit was created to align with global best practices in insolvency management, offering specialised and standardised services to address insolvency matters more effectively. “It also offers insolvency practitioners a dedicated channel for supervisory and enforcement services,” he added.

Hassan described the establishment of the unit as a significant milestone in the modernization of insolvency practices and court proceedings in Nigeria. He emphasized that the initiative would ensure faster resolution of insolvency-related cases, providing much-needed efficiency in the judicial system.

The new unit is expected to facilitate key functions, including company restructuring, administration, and the enforcement of relevant insolvency laws. It aims to provide a specialised platform for insolvency practitioners to navigate complex cases while ensuring adherence to legal and regulatory standards.

This development shows efforts to update Nigeria’s insolvency framework to meet international standards, with an emphasis on improving the efficiency and transparency of judicial processes. The unit is also anticipated to play a major role in addressing challenges related to corporate bankruptcy and financial restructuring in the country.

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