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VOL. 12, ISSUE 3 (2026)
The legal status of a debenture holder in relation to enforcement of Security
Authors
Uke Uke Igbe
Abstract
A debenture is one of the most important security instruments in
corporate financing, providing lenders with legal rights and remedies to
recover debts in the event of default. Despite the statutory recognition of
debenture holders under the Companies and Allied Matters Act (CAMA) 2020 and
established judicial authorities, the enforcement of security by debenture
holders in Nigeria continues to present significant legal and practical
challenges. This article examines the legal status of a debenture holder in
relation to the enforcement of security under Nigerian law. It analyses the
nature and legal characteristics of debentures, the proprietary rights
conferred on debenture holders, and the various enforcement mechanisms
available for the realization of secured debts. The study adopts a doctrinal
research methodology, relying on primary sources, including statutes and
judicial decisions, as well as relevant textbooks and scholarly literature. The
findings reveal that although Nigerian law provides extensive remedies,
including the appointment of a receiver or receiver-manager, foreclosure, the
exercise of the power of sale, and winding-up proceedings, procedural
complexities, delays in judicial processes, and inadequate protection of
secured creditors continue to impede effective enforcement. The article argues
that the legal status of a debenture holder extends beyond that of an ordinary
unsecured creditor by conferring proprietary interests capable of securing
priority over charged assets. It concludes that strengthening the legal and
institutional framework governing secured transactions, ensuring strict
compliance with statutory requirements, and promoting efficient enforcement
mechanisms are essential for enhancing creditor confidence and facilitating commercial
lending in Nigeria.
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Pages:122-126
How to cite this article:
Uke Uke Igbe "The legal status of a debenture holder in relation to enforcement of Security". International Journal of Law, Vol 12, Issue 3, 2026, Pages 122-126
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