Failure in sustaining family businesses limits Africa’s growth – Aig-Imoukhuede

The co-founder of Tengen Family Office, Mr Aigboje Aig-Imoukhuede, has warned about Africa’s economic future, stating that the continent’s failure to sustain family businesses across generations is a critical barrier to development.

Aig-Imoukhuede said this at the Lagos Business School International Family Business Conference 2025, themed ‘Preparing the Next Generation for Stewardship: Building a Lasting Legacy for Family Businesses’, which was held on Thursday in Lagos.

He said strong economies are built on the foundation of thriving family enterprises, which Africa has failed to nurture.

He explained, “The mortality of family businesses has a perfect correlation with our stunted development. While other regions build on existing business legacies, Africa repeatedly dismantles its economic gains. Every time we start from the bottom, others build on what has been built. You cannot compete with compounding.”

He emphasised the long-term advantages of structured business succession. Aig-Imoukhuede drew comparisons to global economic powerhouses such as JP Morgan and the Rockefellers, who institutionalised family enterprises beyond business ownership.

He said these firms incorporated governance structures, philanthropy, and investment offices to sustain their wealth. He noted that in contrast, Africa’s cycle of business collapse and reinvention has hindered economic expansion and wealth accumulation.

“The family enterprise is broader than the family business. It includes governance, philanthropy, and long-term investments,” he noted, urging African entrepreneurs to embrace structured succession planning to ensure continuity.

Aig-Imoukhuede’s remarks added urgency to ongoing discussions about economic transformation in Africa. “Without deliberate efforts to institutionalise family businesses, the continent will struggle to compete on the global stage and break free from cycles of economic stagnation,” he warned.

On her part, the Executive Director, Business Development and Innovation at PUNCH Nigeria Limited, Omowunmi Tunde-Obe, emphasised the importance of preparing the next generation to sustain legacies.

Reflecting on her father’s vision, she recalled his dying words: “PUNCH must not die. Please don’t let PUNCH die.”

She explained that her uncle stepped in as a regent, steering the company through turbulent military crackdowns. “He not only ensured its survival but made it Nigeria’s widest-selling newspaper,” she said.

Tunde-Obe detailed her gradual immersion into the business, crediting training programmes and board roles for shaping her leadership.

“I developed a hunger and passion for making a difference,” she noted, reinforcing the need for structured succession to uphold institutional legacies.

Also, the founder and Chief Executive Officer of Coscharis Motors Limited, Dr Cosmas Maduka, emphasised the need for intentional leadership in sustaining family businesses beyond the founder’s lifetime.

He argued that success is not solely determined by education but by a clear vision and strategic planning. “If everything you stand for dies when you die, you have not lived effectively,” he stated.

Maduka stressed that legacy requires successors who are not only willing but hungry for success. “You can never teach anyone to be hungry. It must come instinctively,” he added.

Maduka, who disclosed that his children are actively involved in his business, warned that hope alone is not a strategy. “Nothing changes without leadership. If you want to leave a legacy, you must work towards it,” he added.

Also, the Director of the Lagos Business School Family Business Initiative, Dr Okey Nwuke, emphasised the need for long-term sustainability through stewardship rather than mere leadership.

The theme of the conference explored how businesses can survive across generations. Addressing participants, Nwuke said, “The real challenge is ensuring that businesses outlive their founders. Stewardship, not just leadership, is key to continuity.”