Federal High Court Establishes Insolvency Unit to Enhance Corporate Restructuring

The Chief Judge of the Federal High Court, Justice John Tsoho, has established an ‘Insolvency Unit’ to oversee corporate restructuring and liquidation proceedings. The court’s Chief Registrar, Sulaiman Hassan, disclosed this in a statement.

The unit was created under key legislation, including the Companies and Allied Matters Act (CAMA) 2020, Assets Management Corporation of Nigeria (AMCON) Act 2019 (as amended), Nigeria Deposit Insurance Corporation (NDIC) Act 2024, and the Bankruptcy Act, Laws of the Federation of Nigeria 2010.

Hassan outlined the unit’s primary functions, which include supervising Company Voluntary Arrangements (CVA), administration, receivership, winding up, and various corporate restructuring processes. He emphasized that the initiative aligns with global best practices and aims to provide specialized, standardized, and fast-track services for insolvency matters.

Additionally, the unit will serve as a dedicated channel for supervisory and enforcement services for insolvency practitioners. Hassan described its creation as a milestone in modernizing and updating Nigeria’s insolvency framework.