The Business Recovery & Insolvency Practitioners Association of Nigeria (BRIPAN) has said that a sound insolvency regime and effective dispute resolution process are the key factors for development in any nation.

Speaking at the BRIPAN 2016 International Conference with the theme: “Nigeria’s Changing Economy And Emerging Issues In Restructuring And Insolvency,” President, BRIPAN, Mr. Sola Oyetayo, said that one of the ten indices of ranking a country in the World Bank Ease of Doing Business is resolving insolvency.

“We want to state that a sound insolvency regime and effective dispute resolution process are the key factors for development in any nation. This is the time for our nation to take its insolvency regime to the next level that will meet international best practices while retaining values drawn from the peculiarities of our local environment,” he said.

Highlighting that some of the major features of reforms undertaken by countries that recorded significant improvements in making it easier to resolve insolvency include: introducing a new restructuring procedure; strengthening creditors’ rights; improving the likelihood of successful reorganisation; among others.

According to him, “In our country today, most businesses are passing through different forms of crisis and challenges leading to the collapse of businesses, which eventually results to corporate insolvency and even individual insolvency. The situation is not different from what individuals, families and individual groups are going through in terms of meeting up with their respective obligations, whether in contract or to the state.

“Even foreign direct investments, effective institutional framework and infrastructure have continued to elude this nation while regulations provide limited and unimpressive services as they appear to work with inadequate legal frameworks that cannot meet the challenges.

“Liquidation, restructuring and planned rescue of business establishments and effective bankruptcy processes remain the primary bases of any insolvency law and practice in every system. It is against this background that we in BRIPAN worked tirelessly on a proposed law on insolvency,” he said.

Meanwhile, Panelists who spoke at the plenary session: Director in Restructuring at KPMG, UK, Ms. Samantha Bewick, Principal, Chikwem Chambers, Mr. Chimezie Ihekweazu and Law Teacher & Doctoral Researcher, Kent Law School, UK, Miss. Oluwadamilola Odetola, said that insolvency is a painful necessity which if not properly managed can lead to the death of state governments as well as institutions of an economy.