Rethinking Corporate Receivership in Nigeria

The last one year has been tough for Nigerian companies because of unprecedented devaluation of Naira and fall of revenue from oil. Many companies especially those whose debt obligations are in U.S dollars have been finding it extremely difficult in meeting their debt commitments resulting in increase in corporate receivership. This situation has informed a rethinking of corporate receivership law in Nigeria. One receivership may lead to many, if a company that other companies rely on for credit or supplies goes into receivership.This article reviews receivership law in Nigeria. The article finds that the fiduciary duties of receiver managers to the company is nothing more than a myth and the chances of survival of the company or unsecured creditors getting anything at the end of receivership are very remote. The article identifies possible areas for reform to minimise the effect receivership on the companies and the Nigerian economy. Keywords: Corporate receivership, receivers, receiver and managers, law reform.