Fresh report by the Lagos Business School’s Family Business Initiative has shown that just 22.8 per cent of surveyed Nigerian family-owned businesses actually have formal succession plans.
Lagos Business School recently revealed that the figures must be highlighted because the long-term survival of such businesses is definitely in doubt.
According to the report, which was made available at the latest edition of the LBS International Family Business Conference held in Lagos, 57 per cent of businesses have yet to complete their succession plan for the future, while 20.2 per cent have not begun any form of planning at all.
The Lagos Business School disclosed that this obvious lack of preparation is a major threat to business continuity that will negatively affect the long-term growth and development of Nigerian companies.
After surveying over 130 family business leaders across several sectors between October and December 2024, the study revealed that most companies in the country lack the required readiness to ensure the coming generation takes over family businesses when the time comes.
Infact, just 24.6 per cent of business leaders were recorded to have said their kids were interested in continuing from wherever they stop, another 58.8 per cent said their kids were indifferent, while the remaining 16.7 per cent confirmed that their children have zero interest in taking over.
Speaking at the LBS International Family Business Conference, 2025, a business owner with more than 2 decades of experience working as CEO in the electrical cable sector, revealed that the stats do not shock him because leadership must be earned, not inherited.
Another 1st-generation businessman said company owners should learn to be objective when selecting heirs to their businesses after they’re long gone. According to him, once the signs are obvious that the next generation won’t take over the business with the passion and dedication it deserves, it is better to look beyond family.
“If the next generation isn’t ready or willing, businesses must look beyond bloodlines to ensure sustainability,” he said.
Highlighting the retirement plans of present business leaders, the study concluded by saying 65.5 per cent plan to step down between the ages of 55 and 65, while 34.5 per cent intend to keep working beyond the age of 70. The report, however, warned that prolonging leadership eventually blocks succession efforts and obstructs the required innovation for the growth of any business.
Folami David writes on trends and pop culture. He is a creative writer, and he is passionate about music and football.
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