By Rukayat Moisemhe
Family business experts have stressed the need for institutionalised governance structures, deliberate succession planning and cultural alignment to ensure sustainability of enterprises across generations.
They gave the advice on Thursday in Lagos at the Lagos Business School (LBS) International Family Business Conference 2026.
The theme of the conference was :”Beyond Survival: Governance and Culture as the Foundation of Lasting Family Legacies.”
The Chairman, Channels Media Group, Mr John Momoh, said many Nigerian businesses were built on survival instincts rather than long-term legacy planning.
Momoh noted that while survival may help to start a business, it does not guarantee sustainability, because what builds a business is different from what sustains it.
Momoh cited global statistics showing that about 70 per cent of wealthy families lose their wealth by the second generation, while 90 per cent lose it by the third, describing the trend as worrisome.
He said the collapse of several notable businesses, both locally and globally, underscored the risks of poor governance, lack innovation and weak succession planning.
According to him, some Nigerian firms fail after the demise of their founders because they are built around individuals rather than enduring systems.
He, however, noted that some families had sustained wealth across generations by focusing on governance, culture and systems rather than profit alone.
“Enduring family businesses are anchored on governance structures, cultural continuity and deliberate succession planning.
“Governance provides clarity on decision-making and reduces conflict, while culture defines shared values and purpose beyond profit,” he said.
Momoh said Channels Television was built on purpose and conviction, not immediate profitability, at a time when Nigeria’s media space was largely government-controlled.
He added that governance at the organisation ensured that family membership did not automatically translate into executive authority, describing the approach as critical for institutional growth.
“If succession is postponed indefinitely, it eventually becomes a crisis.
“We are currently structuring leadership transitions and preparing the next generation to earn leadership, not inherit it,” he said.
The Director, LBS Family Business Initiative, Dr Okey Nwuke, said building enduring enterprises required deliberate structures supporting governance, succession and long-term sustainability.
Nwuke said the LBS initiative aimed to drive best practices across management, governance and society by encouraging business families to share experiences, including successes and failures.
He added that the initiative gathered direct feedback from family business leaders on governance and culture in sustaining legacy across generations.
According to him, while many leaders express confidence that their businesses are built to last, there is often a disconnect between this belief and actual succession outcomes.
He said the gap suggests that although optimism is high, many families do not invest enough effort in building systems for smooth leadership transitions.
The director noted that effective succession planning required clearly defined roles, documented frameworks, independent oversight and transparent ownership structures.
He warned that when leadership transition depends on personal influence rather than institutional systems, businesses become personality-driven instead of system-driven.
He added that while strong culture fosters commitment and financial discipline ensures stability, governance remains the weakest link in many family businesses.
He said culture without governance leads to weak continuity, while finance without governance results in fragile stability.
The Deputy Vice Chancellor of Pan-Atlantic University, Prof. Uchenna Uzo, said family businesses account for about 50 per cent of enterprises in Nigeria and contribute more than half of the country’s Gross Domestic Product.
Uzo, however, noted that only about 30 per cent survive beyond the first generation.
He attributed the low survival rate to weak corporate governance frameworks and poor organisational culture.
“Major risk confronting family businesses is not failure, but success without planning for continuity and succession.
“Governance helps to build systems beyond individuals, while culture ensures that family values are embedded in business operations,” he said.
He urged business owners to prioritise continuity and build legacy intentionally across generations.
Also, Dean, Lagos Business School, Prof. Olayinka David-West, said the family business conversation had evolved from building structures that outlive founders to embedding governance as a daily discipline.
David-West described family businesses as entities shaped by relationships, values and shared identity, noting that maintaining unity becomes more complex across generations.
She said governance and culture remain the twin pillars for sustainability, while disciplined capital strategies drive long-term growth.
She added that the conference would explore governance systems, shared family culture and aligned capital structures to support long-term vision.
David-West urged participants to institutionalise not just policies but behaviours that enable legacies to be built and sustained across generations. (NAN)
Edited by Chinyere Joel-Nwokeoma
