Nigeria’s industrial and economic progress remains vulnerable due to the lack of businesses that survive beyond their founders. Industry and business leaders are emphasizing the need for discipline and mentorship to ensure continuity. According to George Onafowokan, Managing Director of Coleman Technical Industries Limited, “There must be a deliberate attempt to ensure the business grows.” He stressed that continuity only happens when businesses embed their roots firmly in Nigeria and plan intentionally for succession.
A PwC survey found that 79% of family businesses attribute their longevity to strong core values. In Nigeria, where culture and commerce intersect deeply, the impact is even more pronounced. About 65% of Nigerian family businesses emphasize community contribution, reinforcing trust and reputation. Family-owned enterprises account for the bulk of businesses in the country, and their ownership and management have become a decisive factor in sustaining jobs, investments, and long-term economic growth.
However, Nigeria struggles to produce enduring legacy firms. The Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, noted that there were about 23.8 million family businesses in the country, responsible for millions of jobs and contributing roughly $200bn annually to the economy. Despite this, the country has few 100-year-old companies, partly because of weak data records and the relatively young age of the country itself.
Stakeholders emphasize that discipline is the foundation of continuity. Onafowokan traced Coleman’s resilience to hard choices during economic shocks, including a 70% staff reduction during the 2016 currency devaluation. He argued that many Nigerian businesses collapse because founders and successors fail to embrace delayed gratification. Foreign investors often outperform locals because they play the long game, prioritizing reinvestment over short-term gains.
Mentorship and financial realism are also crucial. Onafowokan stressed that founders must mentor successors and peers on financial realism, prioritizing margins and cash flow over appearances. The Director of the Centre for Promotion of Private Enterprise, Dr. Muda Yusuf, explained that many Nigerian businesses still fail to plan deliberately for generational transition. He advised founders to build capacity among their children to take over the business, rather than imposing ownership without preparation.
Analysts link business continuity directly to macroeconomic stability. The Director of the Africa Retail Academy at the Lagos Business School, Prof. Uchenna Uzo, argued that the continuity of the business landscape triggers the continuity of the entire economy. He identified poor talent management and inadequate succession planning as the biggest threats to continuity, and called for education on family business management and scenario planning to address these gaps.
Ultimately, Nigeria’s economic health depends on the ability of its businesses to survive and thrive beyond their founders. By prioritizing discipline, mentorship, and succession planning, family businesses can ensure their legacy and contribute to the country’s long-term growth and stability.
