Home VOL. 6 (2020) Addressing Insolvency and Business Recovery Issues in the Oil Industry: Proposal for...

Addressing Insolvency and Business Recovery Issues in the Oil Industry: Proposal for Improvement in Nigeria’s Insolvency and Bankruptcy Laws

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Abstract

Insolvency and business recovery laws in Nigeria have not evolved to incorporated re-organisation, reformation of insolvent oil firms’ operations to boost commercial oil firms’ steadiness and economic suitability like other moderately developed countries. In Nigeria, liquidation is understood by many as the panacea to indebtedness. The research evaluates Nigerian insolvency and business recovery legal regime to sustain indebted oil firms from economic shocks owing to the global decline in the oil price to avert imminent business failures due to insufficient cash flows. The aim is to fill the gaps in Nigeria’s insolvency and business recovery laws by recommending a model for the sustenance of oil firms and to propose the reform of the gaps identified in the existing laws and the extant literature on the subject.

Authors: Olujobi, Olusola Joshua