By Sandra Michaels
The House of Representatives has begun moves to repeal and re-enact the Trustee Investment Act of 1957, describing the law as outdated for Nigeria’s modern economy.
Speaker of the House, Rt. Hon. Abbas Tajudeen, said at a public hearing on the Bill in Abuja, that the 69-year-old law has failed to keep pace with sophisticated financial instruments, adding that reform must balance asset preservation with reasonable returns.
Earlier in his welcome remarks, Chairman of the Committee on Capital Market and Institutions, Hon. Solomon Bob, said the old law was made when only Federal Government bonds existed, but Nigeria now has a capital market worth over eighty trillion naira and pension assets over thirty trillion naira.
He said the new Bill proposes expanded investment options including corporate bonds, equities, REITs and Green Bonds, as well as a twenty percent diversification rule and strict fiduciary duties to protect beneficiaries.
