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The Corporate Affairs Commission (CAC) and stakeholders in business recovery and insolvency have called for a homegrown insolvency framework that reflects Nigeria’s economic realities and responds to emerging global business risks
The stakeholders made the call on Thursday in Lagos at the 2026 Annual International Conference of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), themed “Building an Insolvency Architecture for a New World Order.”
They said Nigeria’s insolvency system must evolve to address emerging challenges linked to digital assets, artificial intelligence, climate-related business distress and increasingly complex cross-border business failures
The Registrar-General and Chief Executive Officer of the CAC, Hussaini Magaji, represented by his Special Adviser, Justine Nidiya, said Nigeria could learn from advanced insolvency jurisdictions without simply adopting foreign models
According to him, the country needs to identify principles that strengthen business rescue and restructuring while reflecting its own economic and institutional realities
Magaji said the need for a responsive insolvency framework had become more urgent as businesses face technological disruption, volatile markets, tighter financial conditions, climate-related risks and geopolitical uncertainty
He said Nigeria’s insolvency system should provide for earlier intervention, rescue financing with clear priority rules, effective treatment of dissenting creditor classes, specialised and expedited court procedures, transparent practitioner remuneration, stronger cross-border cooperation and simplified restructuring processes for micro, small and medium-sized enterprises
The CAC chief also said the framework must prepare for new forms of business distress involving digital assets, platform businesses, multinational corporate groups and artificial intelligence
He said insolvency should go beyond liquidating failed companies to include early intervention, the rescue ofeditors
Magaji noted that the Companies and Allied Matters Act (CAMA) 2020 had provided an important foundation by moving Nigeria away from a predominantly liquidation-centred system towards business rescue and recovery
He cited provisions on Company Voluntary Arrangements and administration as mechanisms that allow distressed butrations and preserve value
However, he said the effectiveness of the reforms would depend on implementation and the ability of the system to adapt to changing business realities
Magaji called for an assessment of whether existing insolvency procedures were being effectively utilised and whether delays and costs were discouraging businesses from pursuing rescue options
He also stressed the need to provide smaller businesses with simple, affordable and proportionate restructuring mechanisms, while strengthening cross-border cooperation as businesses increasingly operate across multiple jurisdictions
He said the CAC would continue to strengthen digital filing, corporate records, practitioner regulation and collaboration with the courts, professional bodies and other regulators to improve Nigeria’s insolvency framework
President of BRIPAN, Albert Folorunsho, said insolvency practitioners should be regarded not only as administrators of failed businesses but as “architects of business resurrection.”
Folorunsho said six years after the introduction of the insolvency and business rescue provisions of CAMA 2020, practitioners had gained practical experience that should guide the next phase of Nigeria’s insolvency architecture
He said the conference provided an opportunity to identify gaps in the existing framework and develop practical solutions that could influence policy and strengthen institutions
Also speaking, BRIPAN Vice President, Abiodun Ariyibi, said the profession needed to examine emerging insolvency trends and contribute to reforms that would strengthen restructuring and insolvency practice in Nigeria and beyond
Ariyibi said modern insolvency systems must be resilient, transparent and responsive to economic uncertainty, technological advancement and regulatory changes
He added that the conference would also examine cross-border commercial activity, enterprise value preservation, stakeholder protection and sustainable business growth
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