Insolvency experts highlight role in economic growth

Members of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) have highlighted how they rescue businesses and improve insolvency legislation in Nigeria.

As an insolvency association, it said it also regulates members on best ethical values for the effective discharge of duties.
Newly elected President of BRIPAN, Chimezie Ihekweazu, said this during the association’s yearly general meeting, induction of new members and addition of 13 senior insolvency practitioners to the rank of fellows, in Lagos.

Highlighting the major insolvency challenges of indebtedness and poor management within the structure, he said practitioners are regularly informed by acquiring the necessary skills that enable them to deal with issues.

“We work with strategic government institutions like the judiciary to ensure that where reforms are needed, they would be embraced for the interest of the stakeholders. Where we find any lapses, it is our duty to propose reforms for such institutions, and where there is a need for rules, supporting laws, or practice directions, our objective is to improve such encouragement with the legal framework,” he said.

On his plans as the new president to move the association forward, Ihekweazu said he’ll focus on widening the group’s membership status.

“Our major responsibility lies on us looking at the socio-economic environment and see what next can work for us within the structure of the law and to apply the necessary skills for our institutions to empower members.

“Our past president has laid a good foundation. We plan to have a strategic alliance with institutions like ICSAN, CITN, and C.Arb to work together and ensure most of the training can be shared to ensure that professionals at every point bring out their best in terms of professionalism and knowledge of the law in insolvency. With good support, we will grow our membership,” he said.

Immediate past President of BRIPAN, Richard Akintunde, said in the past few years, the association has been involved in improving insolvency legislation and resolution in Nigeria, “because when we talk about Foreign Direct Investments (FDIs) in Nigeria and local investments, we look at what the insolvency processes are available to take out your money if the business is not doing well.

“Businesses at times fall sick. With the challenges of forex risk and high inflation, people have lost their purchasing power, making businesses unable to meet their obligations and some are closing down. You need to be able to do a health check on your business at the appropriate time and you try to use informal and formal rescue options that can be available and it is only seasoned practitioners that can help. That is what we do by increasing the awareness of business service experts and training to improve their knowledge.

“Last year, we were active in increasing awareness about business rescue options available to Nigerian businesses, including Small and Medium Enterprises (SMEs), who do not know there are business rescue options available for them.”