LBS pushes governance as Key to sustaining family enterprises

The Family Business Initiative of the Lagos Business School has called for stronger governance and structured succession planning as essential tools for ensuring the survival of family-owned businesses across Nigeria and Africa. This was the central message at a webinar titled “Next-Gen Ready: The Family Business Success Blueprint,” held recently as part of a three-part […]

The Family Business Initiative of the Lagos Business School has called for stronger governance and structured succession planning as essential tools for ensuring the survival of family-owned businesses across Nigeria and Africa.

This was the central message at a webinar titled “Next-Gen Ready: The Family Business Success Blueprint,” held recently as part of a three-part series on governance and succession in family enterprises.

The session, coordinated by the Family Business Initiative and anchored by Oreoluwa Adeyinka, Senior Programme Manager, FBI-LBS, was hosted by Dr. Okey Nwuke, Non-Executive Director at Access Bank Plc and Director of the initiative. The featured speaker, Mr. Igbuan Okaisabor, Chief Executive Officer of Construction Kaiser Limited, shared practical insights from his experience in building a successful indigenous construction firm.

Dr. Nwuke warned that the absence of governance remains one of the biggest threats to the longevity of family businesses. He noted that globally, over 70 percent of such enterprises fail to survive beyond the second generation, largely due to weak structures and lack of succession planning.

“A family business without a governance framework is a ticking time bomb,” he said, stressing that governance should be treated as both a business necessity and a family philosophy. He urged business owners to move from informal, emotion-driven decision-making to structured systems that clearly define roles, expectations, and responsibilities.

 

 

 

According to him, many Nigerian family businesses rely heavily on personal relationships, which can become problematic as they expand. “The absence of structure breeds confusion,” he said, adding that governance helps protect both family relationships and business continuity.

 

 

 

Mr. Okaisabor reinforced the importance of intentional governance, noting that it does not have to start with rigid structures. “You can begin informally through meetings and documentation, but it must be deliberate,” he said. He explained that many businesses unknowingly practice governance in their early stages before formalizing it as they grow.

 

 

 

He also cautioned against the dangers of poor governance, warning that it has led to the collapse of once-thriving family enterprises. “I have seen grandchildren of billionaires become tenants,” he said, adding that when businesses fail, families often suffer alongside them.

 

 

 

Okaisabor emphasized meritocracy over sentiment in hiring and management decisions. “You’re not joining as a relative—you’re joining as a professional,” he said, highlighting the need to separate family ties from business responsibilities.

 

 

 

He further underscored the role of transparency in sustaining trust within organizations, noting that clear communication around finances and decision-making reduces conflict. At Construction Kaiser, he said, governance systems ensure accountability and clarity in profit distribution and reinvestment.

 

 

 

On succession planning, Okaisabor revealed that his company actively grooms internal talent, ensuring that key positions have trained successors ready to step in. “Governance and talent development go hand in hand,” he said.

 

 

 

During the interactive session, he advised that governance structures should clearly define appointments, tenure, and exit procedures to avoid emotional disputes. “When roles are formalized, transitions become procedural,” he explained.

 

 

 

In his closing remarks, Dr. Nwuke reiterated that the survival of family businesses depends on structure and foresight. “God forbid is not a strategy,” he said. “Only deliberate governance and proactive succession planning guarantee sustainability.”

 

 

 

He encouraged business owners to begin immediately by documenting values, holding family meetings, and seeking expert guidance, stressing that the best time to act is now.

 

 

 

The session concluded with a call to attend the upcoming Third IFBC 2026 Conference, scheduled for March 26, 2026, at the Ecobank Pan-African Centre, which will focus on governance and culture as foundations for building enduring family legacies.