Understanding the Legal Framework for Insolvency and Business Rescue in Nigeria: Application of CAMA 2020

The Companies and Allied Matters Act 2020 introduced a restructured insolvency and business rescue framework for Nigerian companies, replacing the liquidation-centric approach of the 1990 Act with a broader suite of options including company voluntary arrangements and administration proceedings. For legal practitioners and corporate managers, navigating this reformed framework requires a sophisticated understanding of both procedural requirements and strategic considerations. This study examines the practical application of CAMA 2020's insolvency and rescue provisions in the context of businesses distressed by economic headwinds and post-pandemic challenges. A professional practitioner methodology was employed, drawing on structured interviews with insolvency practitioners, commercial court judges, and corporate recovery lawyers in Lagos and Port Harcourt. Secondary data includes published CAMA 2020 insolvency cases, Federal High Court administration proceedings records, and comparative insolvency law studies from 2020 to 2024. Findings indicate that the administration and company voluntary arrangement procedures are being utilised in a small but growing number of cases, though judicial familiarity with these mechanisms is uneven and creditor confidence in their outcomes remains limited. Secured creditor enforcement rights present ongoing tensions with business rescue objectives. Recommendations include developing judicial practice directions for administration proceedings, enhanced practitioner certification requirements for insolvency administrators, and investor education initiatives on the CAMA 2020 rescue framework. This research equips professionals with practical insights for managing corporate distress under Nigeria's reformed insolvency law. Keywords: insolvency, business rescue, CAMA 2020, administration, corporate recovery.