An assignment of a debt transfers the rights in the debt from the creditor (assignor) to a third party (assignee). The assignee becomes the creditor of the (assigned) debt. In Bennett v White [1910] 2 KB 643 at 646-647 the court explained that an assigned debt is for all purposes in the same...

A major challenge which has continuously bedeviled Nigerian banks is the burden of non-performing loans (NPLs). Data from the Nigerian Bureau of Statistics reveal that NPLs stood at N1.44 trillion at the end of the second quarter of 2019. This was about 9.3% of total loans in the banking sector...

The Asset Management Corporation of Nigeria (AMCON) was established with the core mandate of saving the Nigerian banking system from collapse under the weight of toxic loans. AMCON's primary objective was to purchase soured loans from commercial banks and subsequently recover the loans from...

The importance of a security interest is highlighted when a company is unable to pay its debts. A security interest primarily secures the debtor's payment obligation and insulates a secured creditor from insolvency. Hence, so long as a company is able to pay its debts as they fall due, a secured...

Nigeria's construction sector is a vital economic growth driver. The sector provides physical infrastructure in relation to power, roads, rail, bridges, real estate, industries which drive industrialization and economic growth. The Nigerian Institute of Building claims Nigeria's construction...

Investors' Protection Fund is a quasi-insurance scheme which securities exchanges and capital trade points in Nigeria are required to set up pursuant to section 197 of the Investments and Securities Act, 2007. The primary aim of investors protection funds is to compensate investors who suffer...

On 18 July 2018 the Federal Government unveiled a new national carrier, Nigeria Air, at the Farnborough International Airshow in England. Nigeria Air was scheduled to commence operations in December 2018. It was to be largely private-driven with Government holding just 5% equity. However, on 19...

This write-up appraises the ruling of the Federal High Court (FHC) in RRSAT Global Communications Ltd v DAAR Communications Plc – Suit No: FHC/L/CP/540/12 (“RRSAT v DAAR”) delivered on 26 January 2018 where the Court considered, inter alia, whether filing a winding-up petition in Nigeria...

On 21 September 2018, the Central Bank of Nigeria (CBN) revoked the banking licence of Skye Bank Plc on the ground that it was significantly undercapitalised. The CBN also claimed that Skye Bank's shareholders were unable to recapitalise the bank. CBN's first regulatory intervention in Skye Bank...

Cash flow and balance sheet insolvency tests are the two predominant means of determining insolvency. A company is cash flow or commercially insolvent if it is unable to pay its debts as they fall due. Balance sheet or technical insolvency occurs where the value of a company's assets is less...