Lagos: Insolvency experts have called on banks and practitioners to align loan agreements and practices with the rescue provisions of the Companies and Allied Matters Act (CAMA) 2020. Mr. Albert Folorunsho, the Vice President of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), highlighted this need during the BRIPAN annual conference gala night held in Lagos.
According to News Agency of Nigeria, Folorunsho noted that banks were still accustomed to the provisions under the old law, which allowed the appointment of receivers or receiver-managers to sell or manage distressed companies. He explained that CAMA 2020 introduced administration as a rescue mechanism and stressed that banks must make adequate provisions in loan agreements to empower them to appoint administrators rather than limit recovery to receivership and liquidation.
Folorunsho also urged the association's newly inducted members to demonstrate the highest level of integrity, continuous learning, and the adoption of modern tools such as Artificial Intelligence (AI) in managing distressed businesses. He emphasized that insolvency practitioners must uphold fiduciary responsibility not only to creditors but also to debtors, shareholders, and, in some cases, the courts. Practitioners are reminded that their role as receivers, managers, or administrators does not equate to ownership of the company.
He further stated that the two-day conference had successfully achieved its objectives, addressing contentious insolvency issues, cross-border insolvency matters, and the role of AI in insolvency practice. Highlighting the potential of AI, Folorunsho mentioned its ability to analyze large data sets, predict early signs of company distress, and enable timely interventions through company voluntary arrangements or administration rather than liquidation.
BRIPAN President, Mr. Chimezie Ihekweazu, also spoke at the event, noting that the inductees were joining the profession at a time when Nigeria is repositioning its insolvency framework under CAMA 2020. Ihekweazu, a Senior Advocate of Nigeria, emphasized the shift from the traditional approach of mere receivership and liquidation to a more progressive rescue culture.
He advised the inductees to regard integrity as their greatest asset and to exercise their power with humility, professionalism, and fairness. Ihekweazu encouraged them to embrace lifelong learning, uphold the highest ethical standards, and see themselves as custodians of economic value.
The News Agency of Nigeria reports that the induction was part of the activities planned for the association's 2025 international conference in Lagos.