THE EMERGENCE OF A RESCUE REGIME IN NIGERIAN RECEIVERSHIP PRACTICE

Abstract

The Rescue Culture is very important now with the economic uncertainties that havebedeviled doing businesses in recent  times  in  Nigeria.  It  has  become  obvious  that  a  lot  of  factors  exist  that  could  make  an  otherwise  viable business to be unable to meet up with their debt obligations and hence rated as insolvent. Such temporary set backsare such that should the company be given an opportunity to recover they  would likely be able  to overcome  their temporary  challenges.    Many  developed  economies  have  evolved  beyond  receivership  into  something  like administration  in  United  Kingdom  and  Business  Rescue  in  South  Africa.  Although  receivership  is  different  from liquidation yet the truth remains that the sole interest of a receiver is to recover the secured creditors money, and many times by the time the company enters into receivership and the assets of the company are quickly sold off to recover the secured creditors money, the company is left as an empty shell only good to be sold off. The aim of this paper  is  to  look  at  strengths  and  limitations  of  receivership  in  Nigeria  and  to  know  whether  Company  rescue  is being practiced in Nigeria by whatever name it is called, and to advocate the need to introduce company/ business rescue into our receivership practice in Nigeria.