Chocolate City Group has launched a $1 million founders fund targeting Nigeria’s creative startups during its 20th anniversary celebration in Lagos. The initiative, officially unveiled by the Minister of Arts, Culture, Tourism, and Creative Economy, Hannatu Musa Musawa, aims to provide both equity investment and operational mentorship for early-stage companies in music, film, and creative technology.
Speaking before over 500 creative industry stakeholders, international partners, and media representatives, the Minister commended the private sector-driven approach to strengthening the creative economy. “Private sector investment is critical for creative economy development. Nigeria’s creative industries can contribute significantly to economic diversification and youth employment, but entrepreneurs need partners who understand both the creative and business dimensions. This fund demonstrates the leadership we need from successful Nigerian companies,” Musawa stated.
The fund comes at a time when Nigeria’s creative economy is projected to reach $15 billion in value by 2025. Despite this growth, many entrepreneurs continue to face challenges in accessing traditional financing. Co-founders Audu Maikori and Paul Okeugo, who also celebrated their 50th birthdays during the event, designed the fund to fill the financing and mentorship gaps they encountered while building Chocolate City into one of Africa’s most successful independent entertainment brands.
“The reality on ground is that financial institutions struggle to understand creative businesses. Investors want immediate returns, so young entrepreneurs with genuine potential get stuck,” said Audu Maikori, Chairman of Chocolate City Group. “To solve this, we’re providing patient capital from people who have built sustainable creative businesses in this market. The fund targets companies that combine creative vision with business discipline.”
Vice-Chairman Paul Okeugo highlighted that financial support alone cannot ensure success. “Capital alone doesn’t build successful companies. We’re offering hands-on mentorship in rights management, contract negotiation, and sustainable business practices. These are the structures that allowed us to remain independent while competing globally,” he explained.
Co-Creation Hub (CCHub), Africa’s leading creative ecosystem enabler, has been selected as the programme and implementation partner for the initiative. CCHub will oversee the application process, perform due diligence, and manage portfolio support for funded startups. Managing Director of CCHub, Ojoma Ochai, explained, “We understand what creative entrepreneurs need to scale sustainably. This partnership combines Chocolate City’s industry knowledge with our startup development infrastructure to create comprehensive support for creative entrepreneurs.”
Managing Partner of Argentil Capital Management Limited, Gbenga Hassan, described the investment approach as a response to market inefficiencies. “Nigeria’s creative economy shows strong fundamentals with 63 per cent annual growth in music streaming revenue and increasing global market penetration. Nollywood alone produces over 2,500 films annually, making it the world’s second-largest film industry by volume, yet struggles to access structured financing. The Founders Fund addresses this real market inefficiency where viable businesses in both music and film cannot access appropriate financing,” he said.
Chocolate City, known for developing artists such as M.I. Abaga, Ice Prince, CKay, Blaqbonez, and Young Jonn, has maintained its independence while forming strategic partnerships with Warner Music. Applications for the founders fund will open later this month, focusing on startups with demonstrated traction, sustainable business models, and potential for job creation in Nigeria’s growing creative economy.