A new report by the Lagos Business School’s Family Business Initiative has revealed that only 22.8 per cent of surveyed Nigerian family-owned businesses have completed formal succession plans, raising concerns over the long-term survival of such enterprises.
The report, presented at a recently held 2025 LBS International Family Business Conference held in Lagos, showed that 57 per cent of businesses were still in the process of developing a succession plan, while 20.2 per cent had not started at all.
The LBS, in a statement,, warned that this widespread lack of preparation poses a significant threat to business continuity, wealth preservation and long-term growth.
“The absence of structured succession planning endangers the legacy and sustainability of family businesses,” the report stated.
The study, which surveyed more than 130 family business leaders across various sectors between October and December 2024, also raised concerns over the readiness and willingness of the next generation to take over the reins of family businesses.
Only 24.6 per cent of business leaders said their children were interested in the business.
Another 58.8 per cent described their children as indifferent, while 16.7 per cent said they were outrightly disinterested.
The panel of speakers at the conference, which included renowned family business owners and succession experts, called for early exposure, structured mentorship, and career path planning for potential successors.
“Leadership must be earned, not inherited,” said a second-generation business owner with over 25 years of experience as Chief Executive Officer in the electrical cable sector.
A first-generation business leader also stressed the need for objectivity in choosing successors, saying, “If the next generation isn’t ready or willing, businesses must look beyond bloodlines to ensure sustainability.”
Another panellist added, “The heir that has the greatest hunger for success is the most deserving of leading the succession.”
The study also flagged the retirement plans of current business leaders. While 65.5 per cent plan to retire between the ages of 55 and 65, about 34.5 per cent intend to remain in charge past 70. The report warned that such prolonged leadership may block succession efforts and stifle innovation.
Panellists at the conference recommended gradual transitions in which founders shift to advisory roles while successors assume operational control.
The report noted a shift in attitudes toward non-family member leadership. It showed that 14.9 per cent of respondents are open to it, 28.1 per cent see it as a temporary measure, and 35.1 per cent expressed indifference.
However, many businesses remain cautious due to trust concerns and cultural hesitation.
The conference urged the creation of governance structures such as boards and family councils to ensure that leadership decisions are based on competence, not kinship.
On the timing of onboarding successors, the report found that 51.8 per cent of business leaders prefer that successors join immediately after secondary school.
Others suggested waiting until after university or gaining external work experience first. The conference recommended a blended approach involving external experience alongside early exposure to business operations.
The report concluded with a strong call for stewardship, warning that without intentional planning, many Nigerian family businesses could face leadership crises and eventual collapse.
“Early planning, inclusive leadership development, professionalisation, and strong governance can help family businesses transition smoothly from one generation to the next,” the report added.
