Nigeria’s industrial and economic advancement will remain fragile unless businesses are deliberately structured to outlive their founders. Industry leaders warn that without intentional succession planning, discipline, and mentorship, many enterprises risk collapse at generational transitions.

A clear example of continuity in action is Coleman Technical Industries Limited. In 2025, the cable manufacturing company marked its 50th anniversary under the leadership of its Managing Director, George Onafowokan. Together with his brother, Michael Onafowokan—an engineer and executive director—George has expanded the firm established by their father, renowned industrialist Kayode Onafowokan. Over the past two decades, Coleman has invested more than ₦700bn in Nigeria.

Reflecting on the milestone, George Onafowokan stressed that longevity does not happen by chance. “There must be a deliberate attempt to ensure the business grows. Coleman is 50 years old, which means there is legacy,” he said, noting that continuity only becomes possible when businesses firmly embed themselves in Nigeria and plan intentionally for succession.

According to PwC, a family business is one in which family members have significant ownership or management involvement, ranging from small local enterprises to global corporations. PwC’s global Family Business Survey shows that 79 per cent of family businesses attribute their longevity to strong core values. In Nigeria, where cultural and commercial relationships are deeply intertwined, this impact is even stronger, with about 65 per cent of family businesses emphasising community contribution to build trust and reputation.

A March 2025 PwC report further highlighted how cultural values influence continuity across regions. In Northern Nigeria, respect for authority, religious principles, and family reputation shape business relationships. In the South-West, patriarchal leadership often emphasises consultation and consensus, mirroring structured boardroom governance. In the South-East, the Igbo Apprenticeship System (Igba-Boi) institutionalises mentorship, skill transfer, and trust across generations.

Family-owned enterprises dominate Nigeria’s business landscape, sustaining employment, investment, and long-term growth. Yet, despite these strengths, the country continues to struggle with producing enduring legacy firms.

Why Legacy Businesses Matter to Nigeria’s Economy

Nigeria’s economy relies heavily on family enterprises. In 2023, the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, estimated that Nigeria had about 23.8 million family businesses, collectively responsible for millions of jobs and contributing roughly $200bn annually to the economy.

A 2024 Moniepoint report, A Deep Dive into Nigeria’s Family-Owned Businesses, noted that Nigeria has very few century-old companies. While part of this can be attributed to the country’s relatively young age and weak historical records, the contrast is stark when compared to countries such as Japan, France, Italy, and Germany, where some family enterprises have survived for over 1,000 years.

Despite this, Nigeria offers encouraging examples of continuity. FCMB Group has sustained its founder’s vision under the leadership of Ladi Balogun. The GiG Group continues to thrive under Chidi Ajaere, who succeeded his father, while Brila FM operates under Deborah Izamoje, with its founder, Larry Izamoje, serving as chairman. Analysts say these cases prove that continuity is achievable when founders prepare successors intentionally.

Yet, many Nigerian entrepreneurs do not recognise that they are running family businesses. Moniepoint estimates that about 60 per cent of businesses in the country are family-owned, often without formal governance or succession frameworks. While some founders actively groom successors, many simply run businesses where children later participate informally, creating long-term risks.

As of 2018, sectors such as education and healthcare dominated family business operations, generating over $1bn in revenue. However, the absence of structured succession planning threatens to erode these gains over time.

‘We Lack a Strong Story of Successors’

Onafowokan argued that Nigeria lacks a compelling narrative of generational continuity. “We have good businesses set up by patriots and matriots. But what happens after those businesses?” he asked. “Tell me 10 companies in Nigeria’s industrial sector that are more than 50 years old.”

Rejecting the idea that Nigeria’s youth explains the problem, he said continuity requires national resolve. “This is something we must be deliberate about as a people and as a country—irrespective of region, tribe, or background—as long as ‘Nigeria’ is written on the business.”

He noted that succession planning determines whether capital, jobs, and productive capacity remain within the country. Indigenous manufacturers, he explained, cannot simply relocate. “They cannot leave Nigeria with their machines. They will fight to stay.”

Discipline as the Bedrock of Survival

Beyond succession, stakeholders identify discipline as the foundation of business longevity. Onafowokan recalled how the 2016 currency devaluation nearly crippled Coleman. “It pushed us into a comatose state for about three years,” he said, adding that the company survived only by making painful decisions, including cutting 70 per cent of its workforce.

“The survival of any business in Nigeria is discipline—vision, focus, and discipline,” he said, noting that delayed gratification is often the difference between survival and collapse. Cultural pressures to display wealth, acquire titles, or maintain lavish lifestyles, he argued, frequently undermine reinvestment.

He added that foreign investors often outperform local firms because they adopt long-term strategies. “They are disciplined and play the long game. Retaining profits over time allows the business to grow exponentially.”

Mentorship, Financial Realism, and Reinvestment

Onafowokan emphasised mentorship and financial realism, warning entrepreneurs against confusing turnover with profit. “It is only when you recover the cash that you know whether it is profit,” he said.

He urged business owners to prioritise margins and reinvestment over appearances. “You must choose between displaying a new car and buying a new machine,” he said, stressing that reinvestment—not ostentation—builds enduring enterprises.

Weak Succession Planning Remains Widespread

The Director of the Centre for Promotion of Private Enterprise, Dr Muda Yusuf, observed that many Nigerian businesses still fail to plan deliberately for generational transition. “We have seen many family businesses collapse once the founder passes on,” he said.

According to Yusuf, ownership does not automatically confer managerial competence. “The fact that your parent owns a business does not mean you can run it,” he said, adding that founders must deliberately build capacity among interested successors.

He stressed that passion is critical. “If the child has no interest, imposing succession will not work,” he said, advising founders to identify heirs who are both willing and capable.

Governance and the Cost of Neglect

An Andersen report on family governance in Nigeria revealed that 70 per cent of family businesses fail by the second generation, while 90 per cent do not survive the third. The report identified family constitutions, succession frameworks, family councils, and conflict resolution mechanisms as essential for continuity.

Analysts note that Nigeria’s largely informal business structures increase the risk of internal disputes, which often destroy enterprises after founders exit.

Business Continuity and Economic Health

The Director of the Africa Retail Academy at Lagos Business School, Prof. Uchenna Uzo, linked business succession directly to economic stability. “If businesses do not survive, it is a signal that the economy is unhealthy,” he said.

Data supports this view. A March 2025 PwC analysis showed that family businesses outperformed non-family firms on the Nigerian Exchange after 2020. Between 2022 and 2023, their market capitalisation rose from ₦6.7tn to ₦17.3tn—an increase of 158 per cent—highlighting their resilience during economic turbulence.

Talent, Ego, and the Legacy Gap

Uzo identified poor talent development and founder-centric leadership as major threats. “Some leaders claim they want to build a legacy, but in reality, they focus on personal glorification,” he said, warning that over-centralisation leaves businesses vulnerable.

To close this gap, he advocated education on family business management and structured succession planning. “Running a family business requires separating family emotions from business decisions while aligning them strategically,” he said.

He concluded that scenario planning and long-term thinking are essential. “It is painstaking work, but planning for uncertainty significantly increases the chances of business survival and continuity.”