Corporate Insolvency Law in Nigeria – The need for Reform
The question that has arisen over the past few years is whether we have a good and modern insolvency law in Nigeria. It is important in answering this question to ponder upon the indices of a good and modern insolvency law and to consider whether our law meets those standards.
Insolvency is a subject concerned with the relationship between a multitude of commercial and social relationships, and it is therefore difficult to invent a complete set of rules for the drafting of an Insolvency law (as we have seen with the wonderful work being done by UNCITRAL). However, there should be general principles to which a good modern insolvency law ought to strive to give effect to. There have been many suggestions regarding the aim of an Insolvency Law (including the draft legislative guide prepared under the auspicies of UNCITRAL), but in considering the standards required for an Insolvency Law in Nigeria, I have used the indices specified by the Committee on the Review of Insolvency Law and Practice in the UK headed by Sir Kenneth Cork to the effect that its aims should include the following;