Research Article
Promoting Multi-Creditor Workouts: A Nigerian Perspective
Omoregie OK*Lagos Business School, Pan-Atlantic University, KM 52 Lekki-epe Expressway Lagos, Nigeria
- *Corresponding Author:
- Omoregie OK
Lagos Business School, Pan-Atlantic University
KM 52 Lekki-epe Expressway Lagos, Nigeria
Tel: +234 1 712 1728
E-mail: [email protected]
Received date: April 05, 2017; Accepted date: June 29, 2017; Published date: July 10, 2017
Citation: Omoregie OK (2017) Promoting Multi-Creditor Workouts: A Nigerian Perspective. Arabian J Bus Manag Review 7: 303. doi: 10.4172/2223-5833.1000303
Copyright: © 2017 Omoregie OK. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
| Peer-reviewed Full Article 
Abstract
The current economic situation in Nigeria like in many other countries makes it almost inevitable that a number of companies will be financially distressed and in need of some form of reorganization to ensure they can continue as a going concern. As at July 2016, over 4 million employees have lost their jobs given challenges faced by their companies (FSB, 2016). By the end of 2015, industry and CBN reports put the total stock of non-performing loans at about N620 billion, which is almost at the CBN regulatory threshold of 5%. This position has deteriorated to 22% as at March 2016, compared to 3.8% in March 2015. The CBN Financial Stability Report for the second half of 2015, shows that non-performing loans (NPLs) in the Nigerian banking system rose by 78.8% over 2014 figures from N649.63 billion as of December 31, 2015 compared with N363.31 billion recorded at the end of December 2014 (CBN, 2015).
