By Oluwakemi Kindness
The House of Representatives is considering a proposal to restrict trustees from investing more than 20 per cent of a trust fund’s assets in a single issuer to reduce financial risks and protect beneficiaries’ money.
The proposal is contained in the Trustee Investment Bill, 2026 (HB 2762), being considered by the House Committee on Capital Market and Institutions.
The committee’s Chairman, Solomon T. Bob, presented the proposal on Monday during a public hearing on the bill at the National Assembly in Abuja.
He explained that the proposed limit would prevent trustees from placing too much of a fund’s resources in one institution, which could expose beneficiaries to significant losses if the issuer experiences financial difficulties.
The bill also seeks to expand the range of investments available to trustees to include equities, corporate bonds, infrastructure funds, real estate investment trusts, private equity and regulated virtual assets.
Bob said the changes would bring Nigeria’s trustee investment framework in line with developments in the financial market, noting that the existing law dates back to 1957.
He added that the proposed legislation would strengthen trustees’ responsibilities by requiring them to act prudently, prioritise beneficiaries’ interests and provide regular reports on the management of trust assets.
The Speaker of the House of Representatives, Tajudeen Abbas, represented by Rep. Dahiru Sarki, said the existing law no longer reflects the complexity of Nigeria’s financial market.
Abbas stressed that allowing wider investment opportunities must go hand in hand with stronger safeguards against reckless decisions, warning that the reform must protect beneficiaries without denying them reasonable returns.
The Speaker said the proposed changes could also help mobilise long-term domestic funds for infrastructure and business development, provided the financial security of beneficiaries remains a priority.
Meanwhile, Bob expressed disappointment over the low turnout of government institutions invited to the public hearing, disclosing that only three of about 12 invited organisations attended.
The Securities and Exchange Commission, Debt Management Office and Association of Corporate Trustees were among those present to make submissions and recommendations on the bill.
Bob urged relevant institutions to take part in legislative engagements, noting that their input was important to producing a law that can effectively regulate trustee investments and protect Nigerians whose assets are held in trust.
