Executive Summary
Corporate trustees in Nigeria are considering an increased role in ensuring the safety of investments and sustainable confidence in the debt capital market, which has seen significant growth. As of May 2023, the debt outstanding in the market stood at N24.46 trillion, with corporate and sub-national bond issuances rising by 502.4 percent between 2017 and 2022. Theresa Orji, president of the Association of Corporate Trustees (ACT), highlighted the need for the public and other capital market operators to understand the role of corporate trustees in protecting investors. Kemi Awodein, managing director at Chapel Hill Denham Advisory Partners, suggested that with the proper support and framework, corporate trustees could act as ombudsmen in the Nigerian debt capital market. She emphasized the importance of legal and regulatory frameworks, capacity, expertise, market demand, and independence for trustees to effectively fulfill this role.
- Corporate trustees aim to enhance investor protection in Nigeria's expanding debt market, potentially increasing confidence and stability.
What Is Driving The Story?
- Debt market growth.
- Need for investor protection.