Experts under the Family Business of Lagos Business School (LBS) have expressed worry about family-owned enterprises in Nigeria and across Africa struggling with leadership transitions, poor governance and the absence of structured succession planning.

They noted that good governance is not just a business tool but should be a philosophy that ensures harmony, accountability, and continuity of such businesses.

The experts spoke at a webinar, “Next-Gen Ready: The Family Business Success Blueprint”, organised by the Lagos Business School. The forum brought together leading voices in the sector to share practical strategies for securing family legacies.

In his remarks, Non-Executive Director at Access Bank Plc, Dr Okey Nwuke, emphasised that governance is the lifeline of family businesses seeking long-term continuity. He noted that over 70 per cent of family businesses globally do not survive beyond the second generation, while those that do share a common trait of intentional governance and structured succession planning.

“A family business without a governance framework is a ticking time bomb”, he warned.

He described governance as a deliberate process that moves families “from the kitchen table to the boardroom” and urged business owners to establish formal structures that define roles, expectations, and decision-making processes within both the family and the business.

Nwuke, who doubles as the Director of the Family Business Initiative, highlighted that many Nigerian family enterprises thrive on emotional relationships and informal decision-making, which often become liabilities as businesses grow.

“The absence of structure breeds confusion. Governance gives direction, protects relationships, and ensures that both the family and the business flourish together”.

He encouraged founders to begin by documenting values, family vision, and behavioural guidelines, even if it starts as a single-page document, noting that governance should evolve as the business matures. “It is not enough to be successful”, he said. “What matters is that success can be sustained”.

On his part, Chief Executive Officer of Construction Kaiser Limited, Igbuan Okaisabor, said, “Governance doesn’t have to start big. You can begin informally, through regular meetings, documentation, and involving trusted people in decision-making. What matters is that the process is intentional”.

Okaisabor emphasised that governance is not a luxury but a necessity for survival. He illustrated how poor governance has destroyed once-thriving Nigerian family enterprises, reducing former billionaires’ families to financial distress.

“I have seen the grandchildren of billionaires become tenants. When the business disintegrates, the family often follows”.

He explained that one of the keys to sustainability is separating emotion from management. He said governance helps in addressing conflicts, clarifying dividend policies, and managing expectations.

“Transparency builds trust, and trust sustains continuity. I make it clear to my family and team that the business comes first. If we destroy the business, there will be nothing left for anyone”. He added that the strength of a family enterprise lies in meritocracy, transparency, and consistency in leadership decisions.

Okaisabor advised that governance structures should include clear policies on appointments, tenures, and exits, adding that there should be investment in the talent pipeline.

Also contributing, the Senior Programme Manager, FBI-LBS, Oreoluwa Adeyinka, noted that the LBS forum will offer practical insights and thought leadership on governance and culture as critical foundations for building lasting family legacies.

“What we are advancing here is a deeper conversation about legacy. Through strong governance and shared values, family businesses can move beyond survival and position themselves to thrive across generations,” she said.