CORPORATE INSOLVENCY IN NIGERIA: SHIFTING FROM DISSOLUTION TO RESTRUCTURING UNDER THE COMPANIES AND ALLIED MATTERS ACT 2020

Abstract

Abstract 
Corporate insolvency is not an expression that has been defined to achieve universal acceptance, but it has assumed considerable significance within the context of both Nigerian law and economy in recent times particularly since the Companies and Allied Matters Act (CAMA) 2020 came into force. This article considers the changing perception of corporate insolvency in Nigeria as a transition from liquidation- based proceedings into devices for business rescue and restructuring. 
By reviewing the core principles of the bankruptcy law, examining the legal and institutional mechanisms of corporate insolvency in Nigeria, it examines several problems that constitute impediments to its success. It employs a doctrinal method and depends on primary works such as the CAMA 2020 in addition to secondary sources like journals, textbooks and materials online. It 
is the contention of this study that there are symptoms to show that modern insolvency practice in Nigerian law is on a trajectory towards adopting international good practices by encouraging corporate rescue mechanisms such as Company voluntary arrangement (CVA) and administration 
opting instead for continuity rather than liquidation. This article recommends that in order to progress from legislative aspiration to practical significance, Nigeria should invest in institution
building, capacity building of professionals and collaboration by regulators.