Corporate Insolvency and Business Rescue in Nigeria: Assessing the Role of ADR in Stakeholder Claims Resolution Post-COVID-19
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Date
2025-11-02
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KWASU Journal of Business and Private Law
Abstract
The COVID-19 pandemic significantly disrupted global markets and exposed the vulnerability of
corporate entities, particularly in emerging economies such as Nigeria. These disruptions
underscore the urgency of robust insolvency and business rescue frameworks that can preserve
viable enterprises while equitably balancing the interests of creditors, employees, shareholders,
and other stakeholders. The enactment of the Companies and Allied Matters Act 2020 introduced
new statutory mechanisms aimed at facilitating corporate rescue. Yet, the effectiveness of these
reforms remains uncertain, particularly in addressing the multiplicity of claims that typically arise
during insolvency proceedings. This paper critically examines the potential role of Alternative
Dispute Resolution (ADR) in supplementing Nigeria’s formal insolvency regime. It explores
ADR’s capacity to foster quicker, confidential, and cost-efficient resolution of stakeholder
disputes, while also mitigating the systemic delays and rigidity often associated with judicial
processes. Drawing insights from comparative jurisdictions, the paper evaluates whether ADR
can effectively bridge institutional and procedural gaps in Nigeria’s corporate rescue framework
or whether persistent structural challenges, including weak enforcement mechanisms and limited
expertise, may hinder its success. The paper ultimately argues that a strategic integration of ADR
into insolvency practice presents a pragmatic pathway for achieving sustainable corporate
recovery and enhancing stakeholder protection in the post-COVID era
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