Dangote, Ibru, Other Family-owned Businesses Contribute $200bn to Nigeria's Economy Annually
- Family-owned businesses have been commended for their significant contributions to Nigeria's economy
- Stakeholders have stressed the need to secure the preservation of family-owned businesses for future generations
- Lack of a succession plan and other factors affect the success and sustainability of family businesses in Nigeria
PAY ATTENTION: Join and listen to Legit.ng's X SPACE - Hard topic: How can the Naira be rescued? | Fri, Oct 27 at 7:00 PM
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
Dr. Jumoke Oduwole has highlighted that millions of Nigeria's family-owned businesses play a pivotal role in generating millions of jobs in the country.
She made the statement during an event sponsored by First Bank and themed "My Family My Business," where stakeholders emphasized the importance of promoting business succession and sustainable planning.
Oduwole, who serves as the Special Adviser to President Bola Tinubu on the Presidential Enabling Business Environment Council (PEBEC), stated that these family-owned businesses make substantial contributions to Nigeria's economy every year.
Source: Getty Images
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!
Importance of family-owned businesses to Nigeria's economy
Oduwole and other speakers at the event stressed the need to secure the preservation of family-owned businesses for future generations.
She identified the Ibru family and other family-run enterprises, constituting 60% of Micro, Small, and Medium Enterprises (MSMEs).
According to The Guardian, Oduwole said these entities, as a collective, contribute to over 50% of the nation's Gross Domestic Product (GDP).
Oduwole further explained that the 23.8 million family businesses in Nigeria are responsible for generating numerous jobs and making an annual economic contribution of almost $200 billion to the country.
As per her statement, these statistics underscore the evident importance and influence that family businesses hold in Nigeria's economy.
Oduwole also highlighted that globally, 150 multi-generational businesses employ over 30 million individuals, collectively generating an annual revenue of $9 trillion.
Factors affecting the sustainability of family-owned businesses
Also speaking on the matter, Sam Abu, the Country Senior Partner, PwC Nigeria, listed some factors that affect the success and sustainability of family businesses in Nigeria.
He pointed out that several factors contribute to this situation. Firstly, he highlighted that merely 25% of family businesses have a succession plan.
Additionally, issues related to trust among customers, employees, stakeholders, and family members pose significant challenges.
Abu also enumerated other critical factors, such as environmental, social, and governance (ESG) issues, which play a pivotal role in the success of any organization and nation.
He emphasized that the key to economic prosperity in Nigeria rests with family businesses. He underscored the government's responsibility to maintain the necessary business-friendly environment and infrastructure to support their success.
What Nigerian businessmen expect from Tinubu's administration
In related news, Legit.ng published a feature article examining the hopes of business proprietors regarding President Bola Tinubu's tenure.
It is worth remembering that during his electoral campaign, Tinubu addressed the business community and made several commitments, including the revival of Nigeria's dormant industries if he were to become president.
The former governor of Lagos State pledged to place a strong emphasis on enhancing security to foster a conducive environment for businesses and the overall economy to flourish and achieve substantial growth and prosperity.
His agenda also encompasses the promotion of agriculture, provision of reliable power, optimization of the exchange rate system, infrastructure development, increased production, and the support of locally-made Nigerian products.
Source: Legit.ng
