FG Tasked on Policies to Sustain 23.8m Family Businesses in Nigeria

Omolabake Fasogbon

The federal government has been advised to intensify support for family businesses in Nigeria to ensure their growth and sustainability. 

This is as experts expressed worries about poor statistics of incomers in family business in the next generation, which is not more than 38 per cent, compare to present 23.8 million operators in the country. 

They argued that this reality might spell doom for future economy considering the huge impact of family investments on public purse, contributing over 50 per cent to the nation’s Gross Domestic Product (GDP).

Speaking at a Family Business summit, themed, “Built to Last: Building a Multi-Generational Business in an Age of Volatility,” Special Adviser to President Bola Tinubu on Presidential Enabling Business Environment Council (PEBEC), Dr. Jumoke Oduwole disclosed that family businesses have created millions of jobs and fetched about $200 billion to national economy annually.

But Country Senior Partner at PwC Nigeria, Sam Abu explained that in spite of the prospects of family business to nation and individuals, sustaining it had been quite challenging.

He said, “About 38 per cent of the next generation is involved in the family business, with 28 per cent of them on the management board. Sadly still, Only 25 percent of family businesses have a succession plan.”

He further identified factors as lack of trust with customers, employees, stakeholders and family members as threatening family business sustainability. 

On his part, Convener, My Family My Business, Oghenevwoke Ighure stressed the need for family businesses to outlive their founders, submitting that government has a role to play to realise this. 

“70 percent of biggest companies in the world are family business, and they provide 60 percent of employment around the world. This is to say that any serious government must be supportive of the business. Government policies, including taxation must be as friendly as possible. This is why we have put this summit together to educate players, and more importantly engage the government. We want to take the conversation to policy level so government can connect appropriately.” 

For Group Executive, Private Banking and Wealth Management at FirstBank, Idowu Thompson, more than government’s support, individual owners must sit tight to have a breakthrough. 

“Owners of family business must plan properly, get right advice, be flexible in approach to creating and preserving asset as well as diversify their investment portfolios by not putting their eggs in one basket. This will ensure that they are able to scale when harvest conditions come, “he advised