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By Merit Ibe
The Lagos Business School (LBS) Family Business Initiative and industry stakeholders have highlighted structural and cultural barriers undermining the longevity of family-owned enterprises in Nigeria and across Africa.
They spoke at the 2026 International Family Business Conference in Lagos, themed “Beyond Survival: Governance and Culture as the Foundation of Lasting Family Legacies.”
The gathering brought together business leaders, founders and experts who called for stronger governance systems, cultural alignment and structured succession planning to help family businesses transition successfully across generations.
Director of the LBS Family Business Initiative, Dr. Okey Nwuke, emphasised the need for deliberate frameworks to support governance, succession and long-term sustainability. He explained that effective succession planning goes beyond mentorship to include clearly defined roles, documented processes, independent oversight and transparent ownership structures.
According to him, a strong governance framework ensures that culture and finance work together to create enduring family legacies. He noted that findings from a recent survey showed that most family businesses remain concentrated in the first generation, making succession a pressing issue.
He disclosed that over 60 per cent of surveyed firms were still controlled by first-generation founders, about 29 per cent had transitioned to the second generation, while only a small fraction had reached the third generation. He described succession as the true test of governance structures, noting that many businesses fail during generational transitions.
Nwuke added that although many firms demonstrate strong financial discipline and long-term thinking, these strengths often do not translate into continuity without structured governance systems. He also identified ownership concentration as a risk, noting that more than 90 per cent of family businesses operate without external investors or independent oversight, limiting access to capital and critical scrutiny.
