The House of Representatives has begun moves to repeal and re-enact Nigeria’s 69-year-old Trustee Investment Act to expand investment opportunities, strengthen protection for beneficiaries and align trust management with modern financial markets.
The proposed reform is contained in the Trustee Investment Act (Repeal and Enactment) Bill, 2026, which was examined at a public hearing organised by the House Committee on Capital Market and Institutions in Abuja on Monday.
Declaring the hearing open, Speaker of the House, Tajudeen Abbas, represented by Dahiru Sarki, said the existing law, enacted in 1957, no longer reflected developments in Nigeria’s economy and financial markets.
He stressed that trustee investment laws must protect assets belonging to individuals, families and institutions while allowing responsible investment decisions that generate reasonable returns.
Abbas warned that overly restrictive regulations could deny beneficiaries legitimate investment opportunities, while weak safeguards could expose their assets to unnecessary risks.
He said the proposed legislation sought to balance investment flexibility with strong fiduciary responsibilities, transparency, risk management and regulatory oversight.
The Speaker urged stakeholders to ensure that the proposed law protected beneficiaries and prevented speculative practices that could undermine trust assets.
Earlier, Chairman of the House Committee on Capital Market and Institutions, Solomon Bob, described the existing legislation as outdated, noting that Nigeria’s financial market had evolved significantly since its enactment.
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He said the country now had a capital market valued at over N80tn, pension assets exceeding N30tn and emerging investment instruments such as Real Estate Investment Trusts, infrastructure funds and green bonds.
Bob explained that the bill proposed expanding the range of assets trustees could invest in to include corporate bonds, equities, exchange-traded funds, real estate, infrastructure funds and foreign investments through licensed custodians.
It also proposes investments in private equity, regulated virtual assets and environmental, social and governance-compliant bonds.
Under Clause 4, the bill introduces diversification requirements, including a proposed 20 per cent investment limit in a single issuer, to reduce concentration risks.
Clause 5 seeks to establish trustees’ fiduciary duties of loyalty, prudence, care and impartiality, while Clause 6 would allow them to delegate certain responsibilities to professional fund managers and custodians without relinquishing their oversight obligations.
The proposed legislation also introduces fair valuation requirements and annual reporting to beneficiaries, alongside restrictions on speculative transactions and investments in unregulated schemes.
Clause 11 empowers the Minister of Finance, in consultation with the Securities and Exchange Commission and other relevant regulators, to issue regulations for implementing the law.
Bob said the committee had invited 12 institutions to contribute to the review, assuring stakeholders that the legislative process would be transparent and focused on protecting beneficiaries.
The public hearing attracted representatives of the Securities and Exchange Commission, Debt Management Office, and other financial sector stakeholders.
The proposed reform is expected to address gaps in the existing legislation by accommodating modern investment instruments while strengthening accountability and safeguards for assets held in trust.
