Promoting Multi-Creditor Workouts: A Nigerian PerspectiveOmoregie 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.
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).