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🇳🇬 Nigeria /Economy & Trade

Governance, Not Capital Size, Determines Generational Wealth Survival: Coronation Trustees MD

From ThisDay · () English

Translated from English, summarized and contextualized by DistantNews.

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  • Preserving inherited wealth across generations in Africa hinges more on robust governance structures than the sheer volume of assets, according to Yemi Sadik, MD of Coronation Trustees Limited.
  • Sadik highlighted that governance failures pose a greater threat to family wealth in Africa than market volatility or economic downturns.
  • He emphasized the need to institutionalize informal governance frameworks common in African families, particularly during succession planning, to ensure long-term continuity.

While accumulating wealth is a significant achievement, its endurance across generations hinges on governance, not just asset size, stated Yemi Sadik, Managing Director of Coronation Trustees Limited. Speaking at the Lagos Private Wealth Conference 2026, Sadik identified governance failure as the primary threat to African family wealth, surpassing market volatility or economic cycles.

Most African families already have some semblance of governance. The difference is that it is informal. Institutionalising that relationship is where the proper structure comes in.

— Yemi SadikYemi Sadik, MD of Coronation Trustees Limited, explaining the state of family governance in Africa.

Sadik noted that many African families already possess informal governance systems, often centered around founders, trusted advisors, or family businesses. These informal structures can function well while the founder is active, as decision-making, values, and knowledge are concentrated. However, challenges arise during succession when future generations lack clearly defined governance frameworks.

Governance failure remains one of the biggest threats to family wealth in Africa, outweighing concerns such as market volatility, economic cycles or business disruptions.

— Yemi SadikYemi Sadik, MD of Coronation Trustees Limited, highlighting the primary threat to family wealth in Africa.

He urged practitioners to view trusts and fiduciary arrangements not as endpoints, but as governance mechanisms. These tools, he explained, organize family influence, enhance accountability, and support long-term continuity, ensuring that wealth can indeed survive across generations.

Trusts, private trust companies and other fiduciary arrangements should not be viewed as ends in themselves but as governance mechanisms designed to organise family influence, strengthen accountability and support long-term continuity.

— Yemi SadikYemi Sadik, MD of Coronation Trustees Limited, on the role of fiduciary arrangements in wealth preservation.
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Originally published by ThisDay in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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