Prioritise Good Governance Over Founder-reliance, Conference Urges Family Businesses

The International Family Business Conference 2026, hosted by Lagos Business School’s Family Business Initiative has challenged Nigerian family enterprises to move past a survival mindset and build for generational endurance.

This is as the conference emphasised that true success lies in endurance across generations built on clarity, discipline, and purpose.

The conference held on March 26, 2026, in Lagos was centred on the theme ‘Beyond Survival: Governance and Culture as the Foundation of Lasting Family Legacy’. This theme addressed a critical weakness in many African enterprises.

The importance of this issue is underscored by the global and local significance of family businesses.

Worldwide, they account for about two-thirds of all businesses, employ roughly 60 per cent of the workforce, and generate over 70 per cent of global GDP.

In Nigeria, they are equally central to job growth and wealth creation. Despite this, many FBs struggle with continuity due to weak governance structures and informal management systems.

The Faculty director at Lagos Business School, Professor Uchenna Uzo highlighted that many family businesses fail to survive beyond the first generation.

Also, the dean at Lagos Business School, Pan-Atlantic University, Professor Olayinka David West stressed that “governance must move beyond documentation to daily practice. Sustainable continuity depends on structured decision making, clearly defined roles, and effective conflict management, not just good intentions.”

Another major contribution of the conference was its emphasis on the interconnection between governance culture and capital. Governance provides structure and clarity, culture ensures cohesion and shared identity, and capital supports long-term vision. Weakness in any of these areas can undermine the entire enterprise. Many family businesses, while rich in values and commitment, lack formal systems, while others have structures but struggle due to unresolved cultural dynamics.

Management Board of Lagos Business School, Pan-Atlantic University, Dr Okey Nwuke noted that only 28 per cent of surveyed businesses have formal, transparent succession processes.

He identified unplanned succession as the greatest threat to continuity, particularly as many founders’ approach retirement without clear transition plans.

The chairman and CEO of Channels TV, John Momoh, said that if the founder is the system, the system will fail, highlighting “the risks of founder dependence, a common issue that limits long-term sustainability. Businesses must evolve beyond reliance on individuals to systems that can function independently.”

Panel discussions provided practical solutions, including the importance of boards’ external advisers, merit-based roles for next generation members, and professional management structures. A defining idea from these sessions was that culture determines behaviour in the absence of the founder, making it a critical factor in institutional strength.

The conference outlined clear takeaways for family businesses. Succession must be structured, governance must be functional rather than symbolic, and culture must be intentionally developed. Achieving continuity also requires courage, separating family from management roles, embracing external expertise, and building systems that outlast the founder.

The IFBC 2026 reframed the conversation around family business success. Beyond external economic challenges, internal weaknesses such as poor governance, unclear roles, and unplanned succession pose significant risks. For Nigeria, the stakes are high as the failure of family businesses affects not only families but also jobs, communities, and economic stability.