Governance Essential for Family Business Survival in Nigeria

At the 2026 International Family Business Conference held at Lagos Business School, experts expressed concerns that family businesses in Nigeria are at risk of collapse across generations without effective governance systems. John Momoh, Chairman of Channel Media Group, noted that while starting a business is crucial, it does not guarantee sustainability.

He cited global statistics indicating that 70% of wealthy families lose their wealth by the second generation and 90% by the third, highlighting a worrying trend. Momoh emphasized that family businesses often fail due to poor governance, lack of innovation, and weak succession planning.

Okei Nwuke, Director of the Lagos Business Family Initiative, stressed that business owners often overestimate their preparedness for success and the need for structured governance to build enduring enterprises. Uchenna Uzo, Deputy Vice Chancellor at Pan-Atlantic University, pointed out that family businesses account for 50% of enterprises in Nigeria but only 30% survive beyond the first generation due to weak corporate governance frameworks.

Olayinka David West, Dean of Lagos Business School, discussed the evolution of family businesses and the importance of governance and shared values in sustaining these enterprises.