AN ADDRESS DELIVERED BY THE PRESIDENT OF THE SENATE, FEDERAL REPUBLIC OF NIGERIA, HIS EXCELLENCY, SENATOR (DR) ABUBAKAR BUKOLA SARAKI, AT THE ONE-DAY PUBLIC HEARING ON THE BANKRUPTCY AND INSOLVENCY ACT, NO.16 OF 1979, CAP B2 LFN, 2004 (REPEAL AND RE-ENACTMENT) BILL 2016 HELD ON MONDAY, 14THMARCH, 2016.
Protocol;
1. It is with great pleasure that I welcome you our invited Guests to the 8th National Assembly, and the Senate of the Federal Republic of Nigeria for this important public hearing.
2. I would like to thank the Distinguished Senators that serve on the Committee on Banking, Insurance & Other Financial Institutions, and the very-able Chairman of the Committee, Senator Rafiu Ibrahim, for the exemplary legislative work that they have been doing in the oversight of our banking and finance sectors.
3. The Bankruptcy and Insolvency Act, (Repeal & Re-enactment) Bill, 2016, is one of the priority bills of the 8th Senate. This bill is considered priority because of its important role as a key contributor to better credit risk management and also as a vital credit availability and business management tool. This makes this public hearing special.
4. Our public hearings are crucial avenues for us to distil public opinion and check the pulse of the nation over our policies and activities. Our objective is to provide our people with the needed space to participate in our lawmaking processes. These hearings are very important to us, as overtime, the input of actors from various fields and diverse backgrounds on particular legislative issues, have given our work here at the National Assembly, consensus and depth.
5. As we settle in to consider the issue before us at this session on the Bankruptcy and Insolvency Act, our contributions to the discussion of the day, must be guided by the fact that Nigeria is undergoing change; a re-evaluation, re-definition, and re-construction across all sectors of our lives.
6. Our overarching objective is to reposition the Nigerian economy more effectively to the challenges of the 21st century. This is why the key policy priorities of the 8th Senate has been on business environment reform that would creates more jobs and opportunities for our youthful population, to promotes and sustains our domestic entrepreneurs, as well as to attract new investors into our country.
7. Consequently, we believe that it is important for us to continue the process of strengthening Nigeria’s business-related legislations by examining our bankruptcy laws. This is because global best practices have taught us that the bedrock of modern competitive economies is based on free entry and free exit. The role of an effective bankruptcy and insolvency system in delivering this cannot be over-emphasised.
8. This would also mean that for free exit to be orderly in the event of losses, Nigeria needs stronger bankruptcy and insolvency laws to guide the process that would ensure that such firms that incur losses can easily break even and exit the markets using several market tools and intervention mechanisms.
9. Distinguished Committee Members and invited Guests, insolvency system and practice play important role in attracting both domestic and foreign investments as well as promoting innovation and entrepreneurial development. Given these opportunities, there is urgent need for us to repeal and re-enact this Act which has become obsolete and out-dated.
10. As we continue to move forward with the business of the day, I would like to thank everyone for coming. I would also like to thank you all for participating in this process and giving us your much-needed views and recommendations.
11. I wish to seize this opportunity to reiterate that the 8th Senate is committed to delivering our legislative agenda to enable the Executive entrench and underpin the diversification of the economy and expand our people’s opportunity to contribute to better governance. This however, requires all hands on deck; we cannot do this alone.
12. May I now formally declare open this public hearing on the Bankruptcy and Insolvency Act Amendment Bill 2016.
13. God bless you, and God bless the Federal Republic of Nigeria.
PRESIDENT OF THE SENATE
