Proposed Bill Aims to Modernize Nigeria’s Trustee Investment Law and Protect Beneficiaries

The House of Representatives Committee on Capital Market and Institutions has introduced a new bill aimed at updating Nigeria’s trustee investment laws. The proposed Trustee Investment Bill, 2026, seeks to limit investments in a single issuer to 20% to protect beneficiaries from financial risks.

This proposal was announced during a public hearing at the National Assembly in Abuja. Committee Chairman Solomon T. Bob emphasized that the current Trustee Investment Act, established in 1957, is outdated and does not reflect today’s financial landscape. He noted that Nigeria’s capital market is now valued at over 80 trillion Naira, with pension assets exceeding 30 trillion Naira.

The new bill aims to expand investment options for trustees, allowing them to invest in corporate bonds, real estate trusts, infrastructure funds, and more. Bob explained that this diversification is crucial to minimize risk and enhance returns for beneficiaries.

The bill also seeks to strengthen the responsibilities of trustees, ensuring they act in the best interest of those they serve. It includes provisions for transparency, requiring fair asset valuation and annual reporting to beneficiaries. Additionally, it prohibits speculative investments and empowers the Minister of Finance to create necessary regulations.

During the hearing, Bob expressed disappointment over the low attendance of invited government agencies, noting that only a few institutions participated. He stressed the importance of legislative engagement in improving the management of trust assets.

House Speaker Abbas Tajudeen called for a complete overhaul of the trustee investment framework, highlighting the need for a legal structure that addresses modern investment opportunities while safeguarding trust assets. He warned against overly restrictive regulations that could hinder potential growth for beneficiaries.

The proposed bill represents a significant step towards modernizing Nigeria’s approach to trust fund management, aiming to balance the need for investment flexibility with the protection of beneficiaries’ interests.