Ex-NNPC Director Unveils Book On Why Family Businesses Fail Beyond Two Generations

A former internal audit director at the Nigerian National Petroleum Company Limited (NNPC Ltd), Wosilat Adebayo, has identified poor succession planning, weak financial management and inadequate business structures as some of the factors responsible for the failure of family-owned businesses to survive beyond their founders.

Adebayo highlighted these challenges in her new book, Igniting Entrepreneurship: Your Guide to Build a Successful Business, unveiled on Wednesday at an event in Abuja.

The book launch attracted directors of NNPC Ltd, members of the Institute of Chartered Accountants of Nigeria (ICAN), including its President, Queensley Seghosime, and other guests.

A former Director of Finance at the Central Bank of Nigeria (CBN) and current director at First Bank Plc, Tope Omage, reviewed the book at the event.

Omage described the publication as a well-structured and methodical text that bridges the gap between academic business theories and the practical realities of running an enterprise.

She said the author made the book engaging by presenting business ownership as a problem-solving lifestyle rather than merely a series of corporate financial calculations.

“What makes ‘Igniting Entrepreneurship’ an interesting read right from the start is how the author frames the mindset of a business owner. She doesn’t treat business as a series of cold corporate spreadsheets. Instead, she presents it as a dynamic, problem-solving lifestyle,” she said.

11 chapters on building sustainable businesses

The book comprises 11 chapters covering the different stages of establishing, managing and sustaining a business.

It draws on Adebayo’s professional experience and upbringing, particularly the practical intelligence and collaborative strategies she observed in her late parents, Alhaji Tijani and Alhaja Hamdalat.

The first two chapters introduce a framework for assessing an entrepreneur’s skills and abilities, encouraging prospective business owners to identify their technical and interpersonal strengths before starting a business.

The author argues that existing talents and ideas can provide the foundation for viable enterprises, challenging the tendency among aspiring entrepreneurs to prioritise access to capital over identifying business opportunities.

Chapters three to five examine the practical steps involved in starting a business, including assessing market size, analysing competitors, understanding customer expectations and developing a business plan.

Chapters six to eight focus on financial management, drawing on Adebayo’s experience in corporate finance. They explain cash flow management, cost minimisation, working capital and proper record-keeping in accessible language.

The final three chapters address business expansion and sustainability, with particular emphasis on why Nigerian businesses, especially family-owned enterprises, often struggle to survive beyond their founders.

Adebayo discusses the importance of establishing a sustainable business culture and developing leadership succession plans to ensure that enterprises outlive their founders.

Nigeria needs businesses that outlive founders – ICAN

Speaking at the unveiling, the ICAN President, Seghosime, commended Adebayo for contributing to knowledge, enterprise development and national progress.

Represented by a member of the institute’s council, Nyakno Oluokun, she said knowledge, discipline and integrity were essential to building successful businesses.

“The title of this book speaks to something fundamental about human potential. Every successful enterprise begins with an idea, but not every promising idea becomes a successful business.

“An idea may start a business, but it takes knowledge, discipline and integrity to build an enterprise that endures. That is why this publication is particularly timely,” she said.

Seghosime said Nigeria needed entrepreneurs who could identify opportunities in difficult situations, turn challenges into solutions and build enterprises capable of creating value beyond their founders.

“Nigeria does not merely need more businesses. We need more businesses that survive, grow, create employment, compete successfully and contribute to national prosperity.

“We need entrepreneurs who can recognise opportunities where others see difficulties, transform challenges into solutions and build enterprises capable of creating value beyond their founders,” she said.

She expressed concern over the number of Nigerian businesses that had collapsed, attributing some of the failures to weak foundations.

According to her, poor financial management, inadequate planning, weak internal controls and the failure to separate personal finances from business resources could undermine even promising enterprises.

“But ambition alone is not enough. Passion may ignite an enterprise, but sound financial management keeps its flame alive. Too many promising businesses struggle, not necessarily because their ideas lack merit, but because their financial foundations are weak,” she said.

The ICAN president said the accountancy profession had a responsibility to help entrepreneurs understand their finances, manage risks, meet tax obligations, access funding and strengthen corporate governance.

“Chartered Accountants do more than prepare financial statements. We help entrepreneurs understand their numbers, manage risks, fulfil their tax obligations, access finance, strengthen governance and make decisions that support sustainable growth,” she said.

Family businesses struggle to survive beyond founders

Nigeria has a history of family-owned businesses that flourished under their founders but struggled to survive after their deaths, with some collapsing before reaching the third generation.

The decline of several once-prominent business empires has raised concerns about succession planning, family disputes and the absence of strong management structures in enterprises that depend heavily on their founders.

One example is the Ekene Dili Chukwu Group, founded by the late transport mogul, Augustine Ejikeme Ilodibe.

The company, which operated a large fleet of luxury buses and haulage trucks, was once a major player in Nigeria’s transport industry.

Following Ilodibe’s death in 2007, the business experienced a decline amid disputes among family members over his estate and the management of the company.

Another example is the Concord Group, founded by the late businessman and politician, Moshood Abiola.

The conglomerate had interests in newspaper publishing, aviation, agriculture and manufacturing, including Concord Newspapers, Concord Airlines, Abiola Farms and Wonder Loaf Bakery.

Following Abiola’s death in 1998, several of the businesses gradually declined, with the newspaper eventually ceasing publication and other ventures disappearing.

The Henry Stephens Group, founded by businessman Henry Fajemirokun, also experienced a decline after his death in 1978.

The conglomerate had interests in engineering, banking, insurance, shipping and oil.

These examples highlight the challenges of sustaining family-owned enterprises beyond their founders and reinforce the importance of succession planning, sound financial management and strong corporate governance in ensuring business continuity.