Nigeria’s Family Businesses Face Sustainability Crisis – Stakeholders

Business stakeholders have highlighted the significant opportunities for enhancing the sustainability of Nigeria’s family businesses.

With only 30 per cent of these enterprises surviving beyond the first generation, the need for improved corporate governance and a strong organisational culture has never been clearer at the Lagos Business School (LBS) International Family Business Conference 2026 held yesterday in Lagos.

The conference theme, ‘Beyond Survival: Governance and Culture as the Foundation of Lasting Family Legacies,’ served as a rallying call for action.

Chairman of Channels Media Group, Mr John Momoh, emphasised the importance of shifting focus from mere survival to long-term legacy planning.

He recognised that while survival instincts can help initiate a business, a sustainable model requires different strategies, saying that “global data indicates that approximately 70 per cent of wealthy families lose their wealth by the second generation and 90 percent by the third. This trend highlights the essential need for effective governance and innovation to secure the future of family enterprises.”

Momoh noted that many businesses in Nigeria struggle after their founders pass away, primarily because they are centered around individuals rather than robust systems.

He pointed out that some families have successfully maintained wealth across generations by prioritising governance, culture, and succession planning over short-term profits.

“Enduring family businesses thrive on three foundational pillars: governance structures, cultural continuity, and intentional succession planning,” he stated.

The director of the LBS Family Business Initiative, Dr Okey Nwuke discussed the importance of establishing deliberate frameworks that support governance, succession, and long-term sustainability.

Nwuke stressed that effective succession planning involves more than just mentorship; it requires clearly defined roles, documented processes, independent oversight, and transparent ownership structures.

He noted that a strong governance framework is essential for ensuring that culture and finance work together effectively, transforming them into a lasting family legacy.

The deputy vice chancellor of Pan-Atlantic University, Prof. Uchenna Uzo highlighted that family businesses represent about 50 percent of enterprises in Nigeria and contribute significantly to the nation’s Gross Domestic Product (GDP).

He emphasised that enhancing corporate governance and organisational culture is vital for improving the survival rate of these businesses.

Uzo called for family business owners to be proactive in building and sustaining their legacies across generations.

He suggested that collaborative and participatory structures, as learned from institutions like Pan-Atlantic University, are crucial for creating enduring organizations.

Dean of Lagos Business School, Prof. Olayinka David-West expressed that the conversation around family legacy is evolving. It now focuses on embedding governance as a core discipline and ensuring that culture is an integral part of everyday operations.

She affirmed that governance and culture are the twin pillars necessary for the sustainability of family businesses, supported by disciplined capital strategies that drive long-term growth.

David-West encouraged participants to institutionalize not just policies, but also the behaviors and practices that will help intentionally build and transmit legacies across generations.