Against the urgent need to deepen the Federal Government’s economic agenda – financial inclusion, job and wealth creation and fiscal growth, the critical role played by family businesses as the heartbeat of Nigeria’s economy has once again been spotlighted and thrust into sharp focus.
Digital financial services provider, Moniepoint Inc in its latest case study – How families power Nigeria’s economy, a reflective chronicled how the legacy of family businesses, from centennial conglomerates to bustling local eateries, are a living narrative and solid testament to Nigeria’s entrepreneurial spirit.
It will be recalled that the Special Adviser to the President on Presidential Enabling Business Environment Council (PEBEC) and Investment, Dr Jumoke Oduwole recently revealed that there are approximately 23.8 million family businesses, responsible for millions of jobs, dispersed throughout the country and collectively they contribute around $200 billion yearly into the nation’s economy.
According to the Moniepoint study, which provides deep insights into what has kept these businesses going across generations, how they navigate challenges, and opportunities for growth and innovation, more than half of Nigerian family businesses don’t have strong digital capabilities with very few seeing it as a priority area. The lack of clear governance and business management structures, as well as poor succession planning are some of the challenges that undermine the scalability of family businesses in Nigeria.
Key drivers that underguard a lot of these enterprises include, strong cash flow with a view to ensuring that they remain profitable, high levels of trust driven by shared vision and business objectives and cohesive cultural bonds where one out of every two Nigerian businesses bear the distinction of being a family business.
Furthermore, the study avers that the story of Nigerian family businesses is one of resilience, adaptation, and enduring legacy. It posits furthermore that the future of Nigerian family businesses is bright with potential even as more enterprises embrace the tools and strategies for success in a digital age, supported by innovative driven solution partners. It contends that as they evolve, family businesses will remain at the heart of Nigeria’s economic and cultural identity, powering the nation’s economy and shaping its future for future generations while ushering in a new era of growth, sustainability, and global competitiveness.
Speaking to the rationale behind this latest study, Vice President, Communications and Public Relations, Moniepoint Inc, Edidiong Didi Uwemakpan noted that the decision to focus on family businesses was driven by their significant contributions to Nigeria’s economy despite their varying sizes and sectors.
