Omolola Iyinolakan, President of the Association of Corporate Trustees, has spoken on plans to reposition trusteeship, the need to amend outdated legislation and how stronger investor protection can unlock long-term capital for Nigeria’s infrastructure development.
Iyinolakan said the Association would prioritise engagement with regulators, capacity development and the standardisation of industry operations to strengthen the effectiveness of corporate trustees and improve their perception among market participants.
She said corporate trustees play a fundamental role in protecting investors’ collective interests, particularly in the debt capital market, but their contribution has not received adequate recognition, with some transaction advisers viewing their involvement as an administrative burden.
“Corporate trustees are the gatekeepers of the Nigerian market. We hold and protect the collective interests of every investor in the market. However, as crucial as our role is, the perception of trustees is somewhat poor, and we are sometimes seen as an administrative burden,” she said.
She said her leadership would work towards changing this perception by demonstrating the value trustees bring to transactions through investor protection, regulatory compliance and effective monitoring of debt obligations.
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Among the Association’s priorities is securing an amendment to the Trustee Investment Act, which Iyinolakan described as one of the oldest pieces of legislation in the country and increasingly inadequate for the demands of a changing financial market.
The Association also plans to develop a standardised operational manual for corporate trustees, deepen engagement with regulators to achieve better regulatory alignment and expand industry capacity through training programmes and dialogue on emerging market trends.
Iyinolakan said work had already commenced on some of these initiatives, adding that repositioning the industry would require sustained commitment from members and other market stakeholders.
She identified the Association’s contribution to safeguarding Nigeria’s debt capital market as one of its most significant achievements since inception.
According to her, corporate trustees protect investors by representing their collective interests, monitoring the utilisation of funds raised through debt instruments, enforcing transaction covenants and ensuring that issuers meet their repayment obligations.
These responsibilities, she said, have helped sustain confidence in the debt market and supported the financing of economic and infrastructure development.
The Association has also maintained representation on Securities and Exchange Commission committees responsible for market rules, investor protection and transactional compliance frameworks.
Iyinolakan said the growing recognition of trustees as collaborators rather than administrative intermediaries was gradually changing industry perception.
“Our colleagues in the market are beginning to appreciate that we are co-collaborators in the Nigerian capital market, and we have been chiefly responsible for boosting investor confidence by safeguarding their investments through the enforcement of regulations and transaction covenants,” she said.
She argued that the role of corporate trustees extends beyond routine transaction administration, particularly as governments and businesses increasingly turn to debt financing to fund long-term development projects.
Governments and corporates often raise long-term debt to finance roads, healthcare facilities, affordable housing and other infrastructure projects. However, the sustainability of such financing depends not only on access to capital but also on the credibility of the structures through which funds are raised and managed.
Corporate trustees provide this assurance by monitoring the utilisation of proceeds, ensuring that repayment structures are properly established and overseeing compliance with the terms of the transaction throughout its lifespan.
In doing so, they help reduce investment risks, strengthen accountability and give investors greater confidence to commit funds to long-term projects.
“In simple terms, trusteeship turns infrastructure financing into a trusted, structured and investable proposition. If effectively applied, it can unlock significant capital for Nigeria’s development while protecting both investors and the public interest,” Iyinolakan said.
Her position comes as Nigeria faces a significant infrastructure financing gap and seeks to mobilise more private-sector and institutional capital for development projects. Stronger debt-market structures and investor safeguards are essential to attracting long-term funds into the sector.
However, she acknowledged that the trusteeship industry faces structural challenges, including limited public awareness, a trust deficit in the broader financial system and widening knowledge gaps arising from changes in financial technology and investment products.
To address these issues, the Association is deploying webinars, radio programmes, market literacy initiatives and conferences to educate investors, institutions and other market participants on the relevance of corporate trustees.
It is also seeking to strengthen transparency, independence and consistent reporting to address public scepticism, particularly around public-sector borrowing and the management of debt proceeds.
Modestus Anaesoronye is a leading Nigerian financial journalist with over two decades of experience reporting on the insurance and pension sectors across Nigeria and West Africa. He has held key editorial positions at major national media outlets, including The Comet, The Nation, and Financial Standard, and currently serves as a Senior Financial Analyst at BusinessDay Media Ltd.
A widely travelled reporter, he has covered industry developments in more than 14 countries across Africa and Asia.
Anaesoronye is a multiple award-winning journalist, honoured several times as Insurance Journalist of the Year and Pension Journalist of the Year by recognised industry bodies, including PensionScope and the Pension Fund Operators Association of Nigeria (PenOp), among others.
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