Abstract:
Nigeria currently has a non-functioning insolvency system; it is yet to record a
successful insolvency case. This failure principally is attributable to the weak laws and
enforcement policies in existence. The problem is exacerbated by burgeoning
consumer debt in the formal sector. The causal factors for this increase in debt are
negative economic growth indices such as rising inflation, interest rates and
unemployment. With these indices predicted to worsen, a new Bankruptcy and
Insolvency Act (BIA) was proposed in 2016. The BIA seeks to regulate individual
insolvency proceedings in Nigeria. However, the BIA (as currently conceptualized)
does not make provision for debtors with neither income nor assets, often referred to
as No Income No Assets (NINA) debtors who, it can be argued, are in the majority in
the Nigerian state.
The aim in this thesis is to propose debt relief measures that cater for NINA debtors in
Nigeria. This proposal aims to prevent further discrimination against these debtors in
terms of the current law and the proposed BIA. It envisages that catering for NINA
debtors in Nigeria will boost the Nigerian government’s drive to encourage
entrepreneurship. In providing for NINA debtors it will provide a safe landing for poor
debtors in the event of entrepreneurial failure.
The thesis achieves its stated aim by studying international principles and guidelines
as espoused by leading bodies. Furthermore, the thesis performs a comparative
analysis of relevant NINA provisions in South Africa, Sweden, France, Ireland and
Canada.
The thesis proposes amendments to the proposed BIA in light of the aforementioned
analysis and posits that procedures that are formal and extra-judicial, which have no
financial requirements and are easily accessible to debtors should be incorporated.
