• Thursday, May 23, 2024
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BusinessDay

Family businesses contribute $200bn to Nigeria’s economy- Report

Family-Business

According to Professor Chris Ogbechie, the Dean of the Lagos Business School, family businesses play a significant role in Nigeria’s economy, contributing up to $200 billion. He made this revelation during the Lagos Business School Family Business Conference held in Lagos.

Despite their substantial contribution, Ogbechie noted that only about 30 per cent of Nigerian family businesses survive beyond the first generation, as indicated by research conducted by the Nigerian Stock Exchange. This underscores the critical need for tailored support to ensure their longevity and continued success.

Read also: Professionalising family business governance

“Despite their contributions, statistics show that only about 30 per cent of Nigerian family businesses survive past the first generation [research by the Nigerian Stock Exchange on family businesses]. This highlights the critical need for tailored support to ensure their longevity and continued success,” Ogbechie said.

“These statistics underscore the resilience and enduring legacy of family businesses in our society. However, they also highlight the need for continuous learning and adaptation to ensure sustained success in an ever-changing business landscape.”

Dr. Okey Nwuke, the Director of Family Business Initiative, noted that many family businesses have faced extinction due to management issues.

Ibukun Awosika, the founder of the Chair Centre Group, emphasized the importance of having a clearly defined vision and embracing the right values for the survival of family businesses across generations.

She advised founders to allow successors the freedom to implement their ideas without being restricted by existing templates.