The President of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), Chimezie Victor Ihekweazu (SAN), has called on business owners to seek professional recovery support at the first signs of financial distress rather than waiting until collapse is inevitable.
Speaking at BRIPAN’s members’ night in Lagos, Ihekweazu emphasized that the association — made up of insolvency-trained accountants, lawyers, bankers, and tax experts — is fully equipped to help struggling businesses regain stability. He explained that insolvency does not happen overnight but usually develops over one or two years, during which early red flags become visible.
According to him, these warning signs include delays in paying staff or obligations, difficulty meeting contracts, and unsustainable overhead costs. Shifts in government policies or new regulations, he added, can also trigger insolvency. “The moment these symptoms appear, it is critical to engage experts who can provide timely intervention and keep the business afloat,” he advised.
Ihekweazu highlighted that the Companies and Allied Matters Act (CAMA) 2020 provides several legal options for recovery — such as administration, company voluntary arrangements, receivership, and liquidation — all designed to protect viable businesses from premature failure. He stressed that business recovery, when approached early, can be achieved through judicial and administrative processes backed by law.
Expressing concern over Nigeria’s rising rate of business collapse, he warned that every failed business creates a ripple effect across the economy. “We do not want to step in only after a company has gone under. Sustaining businesses showing signs of life is crucial, because one failed business has a multiplier effect on the economy,” he noted.
He also pointed out that recent tax reforms will shape the practice of insolvency, as practitioners under CAMA have the authority to engage other professionals to aid recovery strategies.
Looking ahead, Ihekweazu revealed that BRIPAN’s annual conference, scheduled for September 25–26, will focus on addressing financial challenges facing Nigerian businesses. The event will feature a faculty of seasoned experts presenting research papers and practical guidance on effective insolvency and business rescue.
