By Peace Udugba
While creating wealth remains a significant achievement, preserving that wealth across generations ultimately depends on governance, stewardship, and the structures put in place to ensure continuity, according to experts at the Lagos Private Wealth Conference 2026.
This was the central theme of a panel discussion on “Legal Structures Essential for Global Wealth Transfer,” where leading practitioners in fiduciary management, estate planning, and private wealth advisory examined the foundations of sustainable intergenerational wealth.
Speaking during the session, the Managing Director of Coronation Trustees, Yemi Sadik, argued that the greatest threat to family wealth in Africa is not market volatility or economic disruption, but governance failure.
Sadik noted that many African families already operate some form of governance through founders, trusted advisers, family businesses, and long-standing relationships. However, he observed that such arrangements are often informal and dependent on individuals rather than institutions.
“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.
According to him, informal governance systems often function effectively during the founder’s lifetime because decision-making authority, family values, and institutional memory are concentrated in a single individual. The real challenge emerges when leadership transitions occur and subsequent generations are required to make decisions without an established governance framework.
He stressed that trusts, private trust companies, and other fiduciary structures should not be viewed merely as legal instruments but as governance tools designed to organise family influence, strengthen accountability, and support long-term continuity.
The panel also highlighted the importance of separating personal wealth from business risk. Participants noted that many entrepreneurs continue to hold substantial assets in their personal names, exposing family wealth to avoidable liabilities.
They argued that formal governance structures provide an additional layer of protection while promoting disciplined decision-making across generations.
Sadik further emphasized that estate planning is not exclusively for the ultra-wealthy, noting that individuals and families can begin building succession structures regardless of the size of their assets.
The discussion concluded that while wealth may be created by individuals, enduring prosperity is sustained through effective governance, responsible stewardship, and institutional continuity.
As African wealth becomes increasingly global and intergenerational, the panellists urged families to focus not only on building capital but also on creating the structures necessary to preserve it for future generations.
