Wisdom Engraced
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A recent report by the Lagos Business School’s Family Business Initiative has raised concerns over the long-term survival of Nigerian family-owned businesses. According to the report, only 22.8% of surveyed businesses have completed formal succession plans, while 57% are still in the process of developing one, and 20.2% have not started at all.
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“The absence of structured succession planning endangers the legacy and sustainability of family businesses,” the report stated. The study, which surveyed over 130 family business leaders, also found that many business leaders are concerned about the readiness and willingness of the next generation to take over the reins of family businesses.
Only 24.6% of business leaders said their children were interested in the business, while 58.8% described their children as indifferent, and 16.7% said they were outrightly disinterested. Panellists at the conference called for early exposure, structured mentorship, and career path planning for potential successors
“Leadership must be earned, not inherited,” said a second-generation business owner. A first-generation business leader stressed the need for objectivity in choosing successors, saying, “If the next generation isn’t ready or willing, businesses must look beyond bloodlines to ensure sustainability.”
The report also flagged the retirement plans of current business leaders, with 34.5% intending to remain in charge past 70. Panellists recommended gradual transitions in which founders shift to advisory roles while successors assume operational control.
The conference urged the creation of governance structures such as boards and family councils to ensure that leadership decisions are based on competence, not kinship. The report concluded with a strong call for stewardship, warning that without intentional planning, many Nigerian family businesses could face leadership crises and eventual collapse.
“Early planning, inclusive leadership development, professionalisation, and strong governance can help family businesses transition smoothly from one generation to the next,” the report added.
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