Experts have advocated the need for a clear governance structure as an essential pathway to expand, sustain growth, and ensure longevity of family-owned businesses in Nigeria.
They also called for building a robust talent pipeline that ensures that the family-owned businesses are always staffed with competent and skilled workers, as well as putting in place a transparent performance-based reward system to foster trust and accountability.
They made the call at the Lagos Business School’s (LBS) Family Business Initiative forum with the theme: ‘From kitchen table to boardroom: structuring governance for growth’ held virtually in Lagos.
The session was part of a broader capacity-building series designed to help family-owned enterprises transition from informal management practices to structured governance systems that support sustainable growth and professionalisation.
The webinar was facilitated by Director of the Family Business Initiative, Dr Okey Nwuke, and Founder of Drugs and Medicaments Limited, Chidi Okoro, who provided participants with practical insights into the governance and succession challenges that often define the long-term survival of family businesses.
According to them, regular staff training will equip teams with the tools needed to navigate complex business terrain. Besides, the experts said ownership, roles, and shareholding of family-owned businesses should be clearly documented, preferably in a family constitution, to avert future disputes.
Nwuke emphasised that governance in family businesses is crucial because it helps separate the business from the family while maintaining a healthy link. He suggested that there was a need to clarify leadership and ownership roles, enabling continuity and reducing risk.
According to him, efforts must be made to attract top talent and manage expectations effectively, while deliberately attempting to establish strategic direction and accountability to drive growth, and professionalism must not be disregarded.
On his part, Okoro highlighted that, whether formal or informal, every business aiming for sustainable growth should have a board, adding that a succession plan should cover all roles and not just top management, with a ‘ready now’ and ‘ready soon’ approach for each position.
Speaking at an earlier held session themed ‘Next-Gen Ready: The Family Business Success Blueprint’, which attracted the Chief Executive Officer of Construction Kaiser Limited, Igbuan Okaisabor and Nwuke, the experts underscored the importance of defining family members’ roles within governance structures and recognising that successors need not be direct descendants to contribute meaningfully to the board.
