Combating insolvency and business recovery problems in the oil industry: proposal for improvement in Nigeria's insolvency and bankruptcy legal framework

Abstract

Insolvency and business recovery laws in Nigeria have not evolved to incorporate reorganisation, reforming insolvent oil firms' operations to boost commercial oil firms' steadiness and economic suitability like other moderately developed countries. In Nigeria, liquidation is understood by many as the panacea to indebtedness. The research evaluates the Nigerian insolvency and business recovery legal regime to sustain indebted oil firms from economic shocks due to the global decline in the oil price to avert imminent business failures due to insufficient cash flows. The aim is to fill the gaps in Nigeria's insolvency and business recovery laws by recommending a model for the sustenance of oil firms and to suggest the reform of the gaps identified in the existing laws and the extant literature on the subject. The paper opted for conceptual legal review, comparative legal and policies analyses of solvency and business recovery legislations in Nigeria, Malaysia, India, South Africa, the United Kingdom and the United States. These nations were designated for this study because their insolvency and business recovery legal regime are business rescued driven, not winding up centred. The study is library researchbased to address some of the flaws in Nigeria's insolvency and business recovery laws. The study finds that Nigerian legislation on insolvency is flawed in oil firms' salvage, improvement and rearrangement. It ends that, statutory bodies in the designated case study nations are efficient than those in Nigeria due to the strong political will of their governments in supporting insolvent oil firms for successful financial recovery, to safeguard jobs, to protect creditors and to enhance the wealth of their nations through sound business recovery policies and laws. The study, advocates, remodel of Nigeria's insolvency and business recovery legislations and policies in compliance with the international standards on insolvent oil firms salvaged and creditors focused policies for a robust economy. The study concludes with the recommendation for further study to consider quantitative analysis research methodology to project further scholarship on the subject.

The Legal Framework for Combating Gas Flaring in Nigeria’s Oil and Gas Industry: Can It Promote Sustainable Energy Security?

“…Gas flaring has led to the degradation of the environment, which has harmed the quality of life, the enjoyment of guaranteed fundamental human rights, and ultimately the achievement of sustainable development [30]. Man is dependent on the environment to attain the goals of meeting fundamental necessities.…”

“…Balancing these competing interests, especially when it is recognised that man is a tenant of the earth's environment with limited time, necessitates that man act in such a way that future generations do not inherit an environment that is a liability. The necessity to protect interests justified the application of environmental legislation as a preventive measure to protect both interests [30].…”

“…The discovery of crude oil in Nigeria has caused serious damage to the ecological system in the Niger Delta region due to oil exploration and production activities. According to the World Bank report in 2008, the Niger Delta region has been found to host the second-largest flaring sites in the world after Russia, with the report showing that more than 150 million cubic meters of natural gas are flared annually [30].…”

Comparison of notary deed in Indonesia, Netherlands, and Belgium during the COVID-19 pandemic

“…If a statement of no objection is required, for example, a merger or liquidation, consideration should be given to that a statement may be issued with a delay. Each court in the Netherlands handles COVID-19 measures differently but must still provide essential services, including issuing a no-objection statement (Olujobi, 2021;Camfferman, 2012).…”

Policy of notary deed in Indonesia, Netherland, and Belgium during the Covid-19 pandemic

“…If a statement of no objection is required, for example, a merger or liquidation, consideration should be given to that a statement may be issued with a delay. Each court in the Netherlands handles Covid-19 measures differently but must still provide essential services, including issuing a no-objection statement (Camfferman, 2012;Olujobi, 2021).…”