Corporate Insolvency and the Role of Accounting: Investigating How Accountants Navigate Corporate Insolvencies and Restructuring in the Nigerian Business Environment

Corporate insolvency is a growing concern in Nigeria’s challenging business environment, characterized by economic volatility, regulatory inefficiencies, and financial mismanagement. This study explores the pivotal role of accountants in navigating corporate insolvencies and restructuring processes, focusing on their responsibilities in financial reporting, compliance, valuation, and stakeholder communication. Drawing on case studies such as Etisalat Nigeria (now 9mobile) and Intercontinental Bank Plc, the paper examines how accountants address insolvency complexities, mitigate systemic risks, and drive successful restructuring outcomes. The study adopts a mixed-method approach, combining qualitative interviews with practitioners and quantitative analysis of corporate insolvency cases in Nigeria. Findings reveal that while accountants are critical in facilitating transparent and efficient insolvency proceedings, they face significant challenges, including fragmented regulatory frameworks, limited technological adoption, and ethical dilemmas. Comparative insights from global practices, particularly in the UK and South Africa, demonstrate the potential for Nigeria to enhance its insolvency frameworks through strengthened regulatory enforcement, technological integration, and capacity building for accountants. This study highlights the urgent need for policy reforms, innovative accounting practices, and collaboration among stakeholders to improve corporate insolvency outcomes in Nigeria. The findings contribute to a deeper understanding of the accountant’s role in mitigating financial crises and fostering economic stability.