Governance, Not Capital, Determines Whether Wealth Endures Across Generations

Nume Ekeghe

Yemi Sadik, Managing Director of Coronation Trustees Limited, emphasized that while accumulating wealth is a notable achievement, safeguarding that wealth for future generations hinges more on robust governance structures than on the sheer size of the assets.

Sadik made the point during a panel titled “Legal Structures Essential for Global Wealth Transfer” at the Lagos Private Wealth Conference 2026, where experts in fiduciary management, estate planning and private wealth advisory explored ways to preserve family wealth over time.

He argued that governance failure represents one of the greatest risks to family fortunes in Africa, surpassing threats such as market volatility, economic cycles or business disruptions.

In his statement, Sadik observed that many African families already have some form of governance in place—through founders, trusted advisers, family‑owned businesses and long‑standing professional ties. Yet these arrangements are typically informal and person‑centric rather than institutional.

“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,” Sadik said.

He explained that informal systems can work well while founders remain actively involved, as decision‑making authority, family values and institutional knowledge are concentrated in a single individual. Problems usually arise during succession when the next generation must manage the assets without clearly defined governance frameworks.

Sadik urged that trusts, private trust companies and other fiduciary arrangements should be viewed not as ends in themselves but as governance tools that organize family influence, enhance accountability and support long‑term continuity.