Administration Order Application (Nigeria)
IN THE FEDERAL HIGH COURT OF NIGERIA
[Court Division]
APPLICATION FOR AN ADMINISTRATION ORDER
Companies and Allied Matters Act 2020 (CAMA 2020), Part 15
IN THE MATTER OF: [Company Name] (RC [RC Number])
APPLICATION BY: [Applicant Name] ([Applicant Capacity])
Date: [Application Date]
1. THE COMPANY
1.1 [Company Name] ("the Company") is a company incorporated in Nigeria under the Companies and Allied Matters Act 2020 (CAMA 2020), with RC Number [RC Number], having its registered address at [Registered Address].
1.2 The Company carries on the business of [Business Description].
2. THE APPLICANT
2.1 The Applicant is [Applicant Name], of [Applicant Address], making this application in its capacity as [Applicant Capacity].
3. FINANCIAL POSITION OF THE COMPANY
3.1 The estimated total assets of the Company are [Total Assets] and the estimated total liabilities are [Total Liabilities].
3.2 The Applicant contends that the Company is unable to pay its debts as they fall due for the following reasons: [Insolvency Basis]
4. PURPOSE OF ADMINISTRATION
4.1 The Applicant submits that the purpose of the proposed Administration Order is: [Administration Purpose], as permitted under Part 15 of CAMA 2020.
4.2 The Applicant submits that the making of an Administration Order would achieve a better outcome for the Company's creditors as a whole than would be achieved by the winding up of the Company.
5. PROPOSED ADMINISTRATOR
5.1 The Applicant proposes the appointment of [Administrator Name] of [Administrator Firm], [Administrator Address], as Administrator of the Company.
5.2 The proposed Administrator has confirmed their consent to act and has confirmed their independence from the Company and any qualifying floating chargeholder.
6. EXISTING SECURITY INTERESTS
6.1 The following charges are registered against the Company at the Corporate Affairs Commission (CAC): [Existing Security]
6.2 The following notifications have been given to qualifying floating chargeholders: [Notification Details]
7. ORDERS SOUGHT
The Applicant respectfully requests that the Honourable Court make an Order:
(a) Placing [Company Name] under Administration pursuant to Part 15 of CAMA 2020;
(b) Appointing [Administrator Name] as Administrator of [Company Name];
(c) Directing that the statutory moratorium under Part 15 of CAMA 2020 take effect from the date of this Order; and
(d) Such further and other orders as the Court deems just.
Dated: [Application Date]
Signed: ___________________________
[Applicant Name]
[Applicant Address]
Applicant / Applicant's Legal Practitioner
________________
Signature
What Is a Administration Order Application (Nigeria)?
A Nigeria Administration Order Application is a formal legal document filed with the Federal High Court of Nigeria to seek a court order placing an insolvent or financially distressed company under Administration pursuant to Part 15 of the Companies and Allied Matters Act 2020 (CAMA 2020). Administration is a statutory corporate rescue procedure introduced by CAMA 2020 as part of Nigeria's most thorough overhaul of company law since 1990.
When an Administration Order is granted by the Federal High Court of Nigeria, an insolvency practitioner — the Administrator — is appointed to take over the management of the company from its directors. The Administrator has all the powers previously vested in the directors and is an officer of the court. Upon appointment, an automatic statutory moratorium takes effect under CAMA 2020, suspending all enforcement actions by creditors, including the enforcement of security interests, the commencement or continuation of litigation, and the levying of execution on company property, unless the Administrator consents or the Federal High Court orders otherwise.
CAMA 2020 introduced three hierarchical purposes for administration: first, to rescue the company as a going concern; second, to achieve a better outcome for creditors collectively than would be achieved by immediate liquidation; and third, to realise property to make a distribution to secured or preferential creditors. The Administrator must pursue the first purpose (rescue) unless the Administrator believes it is not reasonably practicable or that pursuing it would not achieve the best result for creditors as a whole.
The Corporate Affairs Commission (CAC), which administers CAMA 2020, must be notified of every appointment of an Administrator, whether by court order or out-of-court appointment. The CAC maintains the register of insolvency appointments, and compliance with CAC notification requirements is mandatory for the validity of the appointment.
Companies regulated by sector-specific bodies — including banks supervised by the Central Bank of Nigeria (CBN), capital market operators regulated by the Securities and Exchange Commission (SEC), insurance companies supervised by the National Insurance Commission (NAICOM), and pension fund administrators regulated by the National Pension Commission (PenCom) — face additional notification and approval requirements when a company in their sector enters administration. The Administration procedure interacts with the bank resolution framework under the Banks and Other Financial Institutions Act 2020 (BOFIA 2020), which gives the CBN and the Nigeria Deposit Insurance Corporation (NDIC) special powers over distressed banks.
The legal framework governing the Administration Order Application (Nigeria) rests on several interlocking statutes. Part 15 of CAMA 2020 (Sections 449–528) establishes the administration regime, including the statutory moratorium under Section 454. The Banks and Other Financial Institutions Act 2020 (BOFIA 2020) gives the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) special resolution powers over distressed banks, which intersect with the CAMA administration regime. The Federal High Court (Civil Procedure) Rules 2019 govern the filing and hearing of Administration Order applications. The National Pension Commission (PenCom) and the Securities and Exchange Commission (SEC) must be notified where the company in administration is a licensed pension fund administrator or capital market operator. The Federal Inland Revenue Service (FIRS) administers tax claims under the Companies Income Tax Act (CITA) Cap C21 LFN 2004, and the FIRS ranks as a preferential creditor under Section 494 of CAMA 2020 for certain tax debts. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) apply to any personal data processed during the administration. The National Industrial Court of Nigeria (NICN) retains jurisdiction over employment claims under the Labour Act Cap L1 LFN 2004 even after an Administration Order is made.
When Do You Need a Administration Order Application (Nigeria)?
A company director, creditor, or floating chargeholder needs an Administration Order Application when a Nigerian company is insolvent or likely to become insolvent and there is a realistic prospect of rescuing the business or achieving a better outcome for creditors through administration than through immediate liquidation.
When a Lagos-based manufacturing company with secured bank debt to a commercial bank, trade creditors, and employee obligations becomes unable to meet its debts as they fall due, and the directors believe the underlying business is viable if given protection from enforcement, the directors may resolve to apply for an Administration Order to give the Administrator time to sell the business as a going concern, saving jobs and generating greater returns for creditors.
When a construction company in Abuja that holds government contracts defaults on loan repayments to a bank holding a floating charge over its assets, the bank — as a qualifying floating charge holder under CAMA 2020 — may appoint an Administrator out of court to take control of the company, preserve the value of the contracts, and realise assets for the benefit of the bank and other creditors.
When a retail chain in Nigeria with stores in Lagos, Abuja, and Port Harcourt faces insolvency due to foreign exchange losses and rising import costs, creditors owed money may file a joint Administration Order Application with the Federal High Court, citing the company's inability to pay its debts and the availability of a sale-of-business rescue that would preserve creditor value.
When a company that holds a telecommunications licence from the Nigerian Communications Commission (NCC) faces insolvency, an Administration application allows the Administrator time to negotiate the transfer or preservation of the licence before enforcement actions by creditors could disrupt the regulated service.
Administration is not appropriate where the company has no viable business to rescue, where assets have been dissipated through fraud (in which case a winding-up petition may be preferable to preserve investigative powers), or where the company is regulated such that the relevant sectoral regulator (CBN, NAICOM, PenCom) has its own resolution process under applicable legislation.
Directors and creditors in Nigeria should prepare an Administration Order Application proactively once the company satisfies the insolvency test under Section 449 of CAMA 2020. The Nigerian Communications Commission (NCC) must be consulted before placing a licensed telecom company into administration. The Asset Management Corporation of Nigeria (AMCON) established under the AMCON Act 2010 has standing to apply for Administration Orders over companies in which it holds acquired bank loans. Section 467 of CAMA 2020 governs the Administrator's proposals and the creditors' committee. The Investment and Securities Tribunal (IST) established under the Investments and Securities Act 2007 (ISA 2007) may have concurrent jurisdiction over administration of capital market entities. Where the company under administration holds licences from the National Agency for Food and Drug Administration and Control (NAFDAC) under the NAFDAC Act Cap N1 LFN 2004, NAFDAC must be notified of the appointment within 7 days under the agency's licensing conditions.
What to Include in Your Administration Order Application (Nigeria)
A Nigeria Administration Order Application filed with the Federal High Court under Part 15 of CAMA 2020 must contain the following essential elements to be procedurally valid and persuasive.
Applicant details: The full name, address, and capacity of the applicant — whether the company (by board resolution), the qualifying floating chargeholder, or a creditor — with the company's RC Number issued by the Corporate Affairs Commission (CAC) and the company's registered address.
Company financial information: A summary of the company's financial position, including total assets, total liabilities (distinguishing secured, preferential, and unsecured creditors), cash flow position, and the basis for asserting that the company is unable or likely to be unable to pay its debts as they fall due — the test for insolvency under CAMA 2020.
Proposed Administrator's details: The full name, professional qualifications, and consent letter of the proposed Administrator. The Administrator must be a qualified insolvency practitioner. Their independence from the company and any floating chargeholder must be confirmed.
Basis for Administration: A clear statement of which of the three statutory purposes of administration (CAMA 2020, Part 15) the applicant believes administration will achieve, with supporting evidence. A statement that administration would achieve a better outcome for creditors than immediate winding up, supported by a preliminary assessment of the company's business and assets.
Details of existing security: A schedule of all fixed and floating charges registered at the CAC against the company, identifying each chargeholder, the amount secured, and the date of registration. This is essential because qualifying floating chargeholders have the right under CAMA 2020 to appoint their own Administrator rather than consent to the court-appointed Administrator proposed in the application.
Notification to secured creditors: Evidence that qualifying floating chargeholders have been notified of the application in accordance with CAMA 2020, allowing them the opportunity to appoint their own Administrator instead of consenting to the court application.
Draft Administration Order: A draft of the order sought from the Federal High Court, specifying the purpose of administration, the appointment of the named Administrator, and the commencement of the statutory moratorium.
Supporting affidavit: A sworn affidavit by a director (for company applications) or a representative of the applicant creditor confirming the facts in the application and exhibiting supporting documents including the company's most recent audited financial statements, board resolution authorising the application, and CAMA 2020 compliance documents.
CAC notification: A copy of the notification filed with the Corporate Affairs Commission (CAC) of the intention to make the Administration Order application, as required by CAMA 2020.
Compliance checklist for an Administration Order Application (Nigeria): Under Section 459 of CAMA 2020, the application must be supported by a statement of affairs verified by a director. The Corporate Affairs Commission (CAC) must receive notification of administration within 5 business days. Section 454 of CAMA 2020 activates the statutory moratorium immediately on appointment. The Nigeria Data Protection Regulation (NDPR) 2019 requires the Administrator to implement data governance controls over company records containing personal data, overseen by the Nigeria Data Protection Commission (NDPC). The Federal Inland Revenue Service (FIRS) holds preferential creditor status under Section 494 of CAMA 2020 for certain tax debts under the Companies Income Tax Act (CITA) Cap C21 LFN 2004. The National Industrial Court of Nigeria (NICN) retains exclusive jurisdiction over employment claims under the Labour Act Cap L1 LFN 2004 even after an Administration Order is made. The Stamp Duties Act (Cap S8 LFN 2004) applies to any deed of appointment. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation. Parties should obtain advice from a Nigerian Legal Practitioner enrolled at the Supreme Court of Nigeria before filing.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Administration Order Application (Nigeria) (Nigeria) [Legal document template]. Forms Legal. https://forms-legal.com/nigeria/business/corporate/administration-order-application-nigeria
"Administration Order Application (Nigeria) (Nigeria)." Forms Legal, 2026, https://forms-legal.com/nigeria/business/corporate/administration-order-application-nigeria.
@misc{formslegal-administration-order-application-nigeria,
author = {{Forms Legal}},
title = {Administration Order Application (Nigeria) (Nigeria)},
year = {2026},
howpublished = {\url{https://forms-legal.com/nigeria/business/corporate/administration-order-application-nigeria}},
note = {Free legal document template. Based on Companies and Allied Matters Act (CAMA) 2020}
}Frequently Asked Questions
An Administration Order under the Companies and Allied Matters Act 2020 (CAMA 2020), Part 15, is a court order that appoints an Administrator to take control of an insolvent or potentially insolvent company with the aim of rescuing the company as a going concern, achieving a better outcome for creditors than immediate liquidation would produce, or realising assets for the benefit of secured creditors. The Administration procedure was introduced into Nigerian corporate law by CAMA 2020 and represents a significant modernisation of the insolvency framework, replacing the more limited receivership and winding-up procedures as the primary rescue mechanism. When an Administration Order is made by the Federal High Court of Nigeria, a statutory moratorium immediately takes effect under Part 15 of CAMA 2020, which prevents creditors from enforcing security, commencing or continuing legal proceedings, or taking possession of company property without the Administrator's consent or the court's permission. The Administrator is an insolvency practitioner enrolled with the Corporate Affairs Commission (CAC) or otherwise qualified under the Insolvency Practitioners Regulations. The Administrator must act in the interests of all creditors collectively and must file proposals for achieving the purposes of administration with the CAC and all creditors within eight weeks of appointment.
Under CAMA 2020, Part 15, an application for an Administration Order may be made to the Federal High Court of Nigeria by the company itself (by a resolution of the board of directors), by the holder of a qualifying floating charge over the company's assets, or by one or more creditors of the company. A qualifying floating charge holder — typically a bank or financial institution that holds a charge over the whole or substantially the whole of the company's property, registered with the Corporate Affairs Commission (CAC) — may also appoint an Administrator out of court without a court order, by filing the appointment with the CAC, provided the company is or is likely to become unable to pay its debts. The out-of-court appointment route is faster and less costly than a court application. However, where there is a dispute about the appointment, where the company is subject to regulatory oversight by the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), or the National Insurance Commission (NAICOM), or where creditors challenge the process, a court application before the Federal High Court provides greater certainty. Directors contemplating an Administration application should seek advice from a Nigerian Legal Practitioner specialising in corporate insolvency before making the application, as the timing of the application relative to the company's financial position affects both the legal validity of the appointment and the Administrator's ability to achieve the statutory purposes.
When an Administration Order is made over a Nigerian company under CAMA 2020, the employment contracts of the company's staff are not automatically terminated. The Administrator, who steps into the management role of the directors, must decide within a reasonable period whether to adopt the employment contracts of staff whose services are needed to continue operations during the administration. Under CAMA 2020, an Administrator who adopts an employment contract becomes personally liable for wages and salaries accruing from the date of adoption as a super-priority expense of the administration. Employees who are retained during the administration are entitled to receive their wages and benefits as an expense of administration — meaning they rank ahead of most other creditors. Employees who are made redundant during or as a result of the administration retain their rights under the Labour Act Cap L1 LFN 2004, including the right to notice pay and any terminal benefits prescribed by the Act or by their individual employment contracts. Under the Employee's Compensation Act 2010, employees have continuing rights to compensation for work-related injuries regardless of the insolvency of the employer. The NSITF fund is available for compensation payments even where the employer is insolvent. Employees should note that the National Industrial Court of Nigeria (NICN) continues to have jurisdiction to hear unfair dismissal and wrongful termination claims during the administration period.
Applying for an Administration Order in Nigeria under CAMA 2020 involves several categories of costs that applicants must anticipate. Court filing fees are payable to the Federal High Court of Nigeria for the originating motion and supporting documents. These fees vary by court division and are set by the Federal High Court Rules 2019 and associated Fee Schedules, with fees generally calculated as a percentage of the debt or asset value involved. Legal fees for a qualified Nigerian Legal Practitioner to prepare the application, supporting affidavit, administrator's consent, and proposed appointment documents represent the largest upfront cost. Complex administrations involving regulated companies or large secured debt structures may require Senior Advocates of Nigeria (SANs) with specialist insolvency experience. The Administrator's remuneration is governed by CAMA 2020 and the Insolvency Practitioners Regulations: the Administrator is entitled to a reasonable fee approved by the creditors' committee or the court, typically calculated on a time-cost basis or as a percentage of realisations. The Corporate Affairs Commission (CAC) charges filing fees for registration of the appointment and filing of the Administrator's proposals and reports. Where the company is regulated — for example, by the Central Bank of Nigeria (CBN) or the Securities and Exchange Commission (SEC) — regulatory notification fees and legal costs of compliance with regulatory requirements during administration will also arise.
Administration, receivership, and liquidation are the three principal insolvency procedures available for Nigerian companies under CAMA 2020, and they serve distinct purposes. Administration under Part 15 of CAMA 2020 is primarily a rescue procedure — its first statutory purpose is to save the company as a going concern. An Administrator is appointed to manage the entire company and seeks to implement a rescue plan (such as a company voluntary arrangement, sale of the business as a going concern, or debt restructuring) that achieves the best result for all creditors collectively. A statutory moratorium prevents individual creditor enforcement during administration. Receivership — historically the most common Nigerian insolvency procedure — is a remedy for a secured creditor who holds a fixed or floating charge over company assets. A Receiver (or Receiver/Manager) is appointed by the chargeholder to realise the charged assets for the benefit of that specific secured creditor, not for creditors generally. CAMA 2020 retained and reformed receivership provisions in Part 14. Unlike administration, receivership has no automatic moratorium against other creditors. Liquidation (or winding up) is a terminal procedure under Part 16 of CAMA 2020 by which the company's assets are realised, its debts paid in order of priority, and the company dissolved. The Federal High Court has jurisdiction to wind up Nigerian companies. The Corporate Affairs Commission (CAC) can also compulsorily strike off defunct companies.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
Found an error? Let us knowRelated Documents
You may also find these documents useful:
Annual General Meeting Notice (Nigeria)
A statutory notice of Annual General Meeting (AGM) for Nigerian companies under the Companies and Allied Matters Act 2020 (CAMA 2020). Covers 21-day notice requirement, agenda items (financial statements, dividends, directors' election, auditor appointment), proxy provisions, quorum, and CAC compliance.
Annual Returns Filing (Nigeria)
A Nigerian company annual returns filing document for the Corporate Affairs Commission (CAC) under Sections 417–420 of the Companies and Allied Matters Act 2020 (CAMA 2020). Covers the return of allotment, list of directors, registered address, share capital, and attached financial statements. Required within 42 days after each AGM.
Appointment of Auditor (Nigeria)
A formal letter of appointment for company auditors in Nigeria, compliant with the Companies and Allied Matters Act 2020 (CAMA 2020) Sections 401–409, the Financial Reporting Council of Nigeria Act 2011, and the Institute of Chartered Accountants of Nigeria (ICAN) ethical standards. Covers audit scope, fees in NGN, independence requirements, access rights, and FRCN registration.
Articles of Association (Nigeria)
Articles of Association for Nigerian private limited liability companies under the Companies and Allied Matters Act 2020 (CAMA 2020). Covers share capital structure, directors' powers, board meetings, shareholder meetings, dividends, transfer of shares (pre-emption rights), appointment of company secretary, and winding up provisions. Filed with the Corporate Affairs Commission (CAC) on incorporation.
Asset Purchase Agreement (Nigeria)
A formal Asset Purchase Agreement for Nigeria that documents the sale and transfer of business assets — including equipment, inventory, goodwill, contracts, and intellectual property — from seller to buyer under the Companies and Allied Matters Act 2020 (CAMA 2020) and applicable Nigerian commercial law.