A Professional Examination of Cross-Border Insolvency Issues Involving Nigerian Companies Under CAMA 2020

As Nigerian companies increasingly operate across multiple jurisdictions and international creditors participate in Nigerian debt markets, the absence of a dedicated cross-border insolvency framework creates significant legal uncertainty for creditors, administrators, and courts dealing with multi-jurisdictional insolvency proceedings. This study provides a professional examination of the legal challenges arising in cross-border insolvency proceedings involving Nigerian companies, assessing the adequacy of the CAMA 2020 winding-up provisions, the Companies Winding Up Rules, and the judicial approach to recognition of foreign insolvency proceedings. Structured interviews with 20 insolvency practitioners and cross-border transactional lawyers in Lagos were combined with analysis of 10 cross-border insolvency cases involving Nigerian entities from 2018 to 2023. Results indicate that there is no legislative provision for recognition of foreign insolvency proceedings in Nigeria, leading to parallel proceedings that destroy value. Main proceedings in England, Mauritius, or other holding company jurisdictions are not automatically extended to Nigerian assets. Asset dissipation between jurisdictions is a documented concern. The study concludes that Nigeria urgently needs to adopt the UNCITRAL Model Law on Cross-Border Insolvency to provide a structured framework for recognition and cooperation between insolvency proceedings in different jurisdictions. Recommendations include enacting cross-border insolvency provisions within a revised CAMA or standalone legislation and building judicial familiarity through specialist commercial court training.

Keywords: cross-border insolvency, CAMA 2020, UNCITRAL Model Law, recognition of proceedings, international insolvency