Building to last: Lessons from over a century of Nigerian enterprise

In an era defined by economic uncertainty, rapid technological shifts, and evolving market dynamics, the question of business longevity has become increasingly urgent.

For many Nigerian organisations, growth is no longer the ultimate benchmark of success. The greater challenge lies in sustaining relevance through cycles of disruption and change.

This formed the backdrop of conversations at the Nigeria Employers’ Consultative Association (NECA) Annual Retreat, where business leaders gathered to interrogate what it truly takes to build institutions that endure.

Among the key voices at the retreat was Bolarin Okunowo, Managing Director of Chemical and Allied Products PLC (CAP Plc), a subsidiary of UAC of Nigeria Plc (“UAC”), who delivered a keynote address on UAC’s 145+ year history.

Drawing from the conglomerate’s transformation journey spanning over a century, her remarks challenged some of the most deeply held assumptions about legacy and resilience in Nigerian business.

Rethinking what endurance means

A recurring theme in Okunowo’s address was the misconception that history alone guarantees stability. While legacy organisations often benefit from scale and brand recognition, these advantages can quickly become constraints if not actively redefined. Rather than serving as a shield, longevity, she noted, must be treated as a responsibility, one that requires continuous reinvention. Without this, the very attributes that once drove success can hinder future growth.

Historically, many conglomerates expanded across multiple sectors as a hedge against risk. However, this approach often led to fragmented operations and a lack of clarity. Referencing UAC’s evolution, Okunowo highlighted a deliberate shift towards focus, streamlining the business to a select number of core sectors where it could build depth and competitive advantage. The move marked a departure from the traditional model of broad diversification, signalling a more disciplined approach to growth.

The lesson is increasingly relevant in today’s environment: resilience is less about scale and more about strategic precision.

Redesigning systems for agility

One of the most critical transformations discussed at the retreat was the structural redesign of decision-making. Historically, the conglomerate model relied on a heavy, centralised head office that dictated moves to every subsidiary. Centralised decision-making, once a hallmark of large organisations, is now seen as a barrier to speed and innovation.

Okunowo pointed to the importance of decentralising authority, empowering subsidiaries with greater autonomy and positioning decision-making closer to the market. This shift allows organisations to respond more effectively to emerging opportunities and challenges while fostering accountability across business units.

In practice, this means building systems that prioritise agility over control.

The human factor in transformation

While strategy and systems can be redesigned, organisational culture and talent remain more complex to address. A recurring challenge in legacy organisations is what Okunowo described as a “ministry mindset”, a culture that prioritises stability over performance and resists stretch objectives. Left unchecked, this creates inertia at a time when adaptability is critical.

Addressing this requires a clear stance on talent. As a participant at the retreat raised a familiar concern: the risk of investing in people who may eventually leave. Okunowo’s response was direct: “You have to choose your risk. Do you invest in people who may leave or keep people who are not equipped to move the business forward? One is uncomfortable; the other is unsustainable.”

She recounted a baptism by fire at a struggling subsidiary during the onset of COVID-19. With declining performance and a fatigued team, survival depended on making quick, decisive talent calls and empathetic employee relations, alongside an active effort to woo new talent by selling a more ambitious vision. These tasks, though difficult, remain unavoidable for any business pursuing resilience.

A continuous act of reinvention

The insights shared at the retreat reinforce a broader reality: longevity is not an accident of history but the result of intentional choices. For organisations like UAC of Nigeria PLC, sustaining relevance over time has meant continuously re-evaluating strategy, redesigning systems, and investing in people. It is an ongoing process of adaptation, one that prioritises future readiness over past success.

As Nigerian businesses navigate an increasingly complex landscape, the ability to evolve may prove to be the most critical determinant of long-term success. The companies that endure will not simply be those with the longest history but those most willing to redefine it.