The traditional approach to corporate insolvency in Nigeria, which focused on liquidation and winding-up, has undergone a significant shift with the enactment of the Companies and Allied Matters Act, 2020.This legislation introduced administration as a corporate rescue mechanism with an emphasis on the preservation of distressed companies. Unlike liquidation and winding-up, administration aims to revitalise companies and enhance creditor outcomes. However, challenges such as lack of awareness, stakeholder reluctance and creditor impatience can potentially hinder its adoption.Addressing these challenges through enhanced awareness and stakeholder education can promote the efficacy of administration, thus aligning Nigeria's corporate insolvency regime with global standards.
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