Chocolate City’s $1m Fund: A game-changer for Nigeria’s creative industry

Chocolate City Group has launched a $1 million Founders Fund targeting Nigeria’s creative startups at its 20th anniversary celebration.

Minister Hannatu Musa Musawa of the Federal Ministry of Arts, Culture, Tourism, and Creative Economy officially launched the fund before 500 creative industry stakeholders, international partners, and media representatives.

The fund will provide equity investment and operational mentorship to early-stage companies across music, film, and creative technology.

The initiative comes as Nigeria’s creative economy is projected to reach $15 billion in value by 2025, yet entrepreneurs continue to struggle accessing traditional financing.

Co-founders Audu Maikori and Paul Okeugo, both celebrating their 50th birthdays, structured the fund to address gaps they experienced building Chocolate City into one of Africa’s few successful independent entertainment companies.

“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’ve built sustainable creative businesses in this market. The fund targets companies that combine creative vision with business discipline.”

Paul Okeugo, Vice-Chairman, emphasised the operational support model.

“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.”

Minister Musawa welcomed the initiative. “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.”

Co-Creation Hub (CCHub), Africa’s leading creative ecosystem enabler, will serve as the programme and implementation partner for the fund, managing applications, due diligence, and ongoing portfolio support.

Ojoma Ochai, Managing Director of CCHub, outlined the partnership approach. “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.”

Gbenga Hassan, Managing Partner of Argentil Capital Management Limited, described the investment thesis. “Nigeria’s creative economy shows strong fundamentals with 63 percent 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.”

Chocolate City has developed artists including M.I. Abaga, Ice Prince, CKay, Blaqbonez, and Young Jonn while maintaining operational independence and securing strategic partnerships with Warner Music.

Fund applications open later this month, targeting startups and companies with demonstrated traction, clear business models, and potential for job creation. Selection criteria prioritise sustainability over rapid scale, reflecting the founders’ two-decade experience building profitable creative businesses in emerging markets.