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Trustee Investment Act

The House of Representatives has commenced moves to repeal and replace Nigeria’s 69-year-old Trustee Investment Act with a modern legal framework designed to strengthen investment management, protect beneficiaries and align the country’s financial regulations with developments in the capital market.

The proposed reform is contained in the Trustee Investment Act (Repeal and Enactment) Bill, 2026, also identified as HB 2762, which seeks to replace the existing legislation enacted in 1957.

The bill was considered at a public hearing organised by the House Committee on Capital Market and Institutions at the National Assembly in Abuja on Monday.

Chairman of the committee, Solomon Bob, said the existing law had become outdated following significant developments in Nigeria’s financial system and the emergence of new investment opportunities.

He explained that the investment environment had changed considerably since the original legislation was enacted, making it necessary to introduce provisions that reflect contemporary financial practices.

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According to him, the proposed legislation is intended to provide trustees with a wider range of investment opportunities while establishing stronger safeguards for funds managed on behalf of beneficiaries.

One of the major provisions under consideration is a proposal to limit investments in a single issuer to 20 per cent of a trust fund’s portfolio.

The proposed restriction is designed to reduce excessive concentration of investments and prevent beneficiaries’ assets from being exposed to unnecessary financial risks.

Bob, however, urged stakeholders at the public hearing to examine whether the proposed 20 per cent threshold was appropriate, particularly for investment categories considered to carry higher risks.

The proposed legislation is also expected to expand the range of assets in which trustees can invest, reflecting the growing sophistication of Nigeria’s financial markets.

These include corporate bonds, equities, collective investment schemes, exchange-traded funds, real estate investment trusts, infrastructure funds and other emerging investment instruments.

The Speaker of the House of Representatives, Tajudeen Abbas, represented at the hearing by Dahiru Abubakar Sarki, stressed the importance of updating the law to protect property, family wealth and the interests of beneficiaries.

He noted that trust funds often represent the financial security of children, widows, families and charitable institutions, making effective regulation essential.

The proposed reform is expected to improve accountability, strengthen investment oversight and establish clearer responsibilities for trustees.

The legislation also comes amid growing activity in Nigeria’s capital market and the increasing importance of institutional investment funds.

If passed into law, the new framework would replace a regulatory structure that has remained largely unchanged for nearly seven decades.

The bill will, however, require further legislative consideration before it can become law.

Stakeholders are expected to contribute to the review process to ensure that the proposed framework balances investment flexibility with adequate protection for beneficiaries.

The Traffic NG
Trustee Investment Act
Amarachi Ihesiulo

Ihesiulo Grace Amarachi is a Nigerian journalist, writer and media professional serving as the Editor-in-Chief of TheTraffic.NG, a digital news platform covering national and international affairs. Her editorial interests span politics, business, aviation, health, technology, entertainment, sports and social development. She is committed to credible journalism, insightful reporting and compelling storytelling that informs public discourse and keeps readers abreast of important developments in Nigeria, Africa and beyond.

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