RECEIVERSHIP IN NIGERIA: LAW, PRACTICE AND THE NEED FOR REFORM IN CORPORATE DEBT ENFORCEMENT

Abstract

This paper examined the legal framework, practice and emerging issues of receivership in
Nigeria within a comparative context. It aimed to clarify the nature, scope and effect of receivership as a
debt enforcement mechanism and to assess its adequacy in modern insolvency practice. The paper adopted
doctrinal legal analysis using statutes, judicial decisions and comparative review of selected jurisdictions.
The paper argued that receivership in Nigeria operates as a creditor-centred enforcement tool with weak
safeguards for corporate continuity. It further argued that the current legal structure creates uncertainty
in the duties and status of the receiver, which affects accountability and efficiency. The paper found that
while receivership is effective for debt recovery, gaps persist in procedural clarity, regulatory oversight
and the balance of interests between creditors and the company. It also found that comparative jurisdictions
adopt more rescue-oriented approaches which Nigeria has yet to fully integrate. The paper concluded that
the Nigerian regime requires reform to align with global standards and to promote both recovery and
business sustainability. It recommended statutory clarification of receivers’ duties, stronger regulatory
enforcement, and the introduction of a more effective corporate rescue framework to complement existing
receivership practice.