In a landmark move to mark its 20th anniversary, music giant Chocolate City has announced a $1 million founders fund dedicated to nurturing the next generation of creative startups in Nigeria.
The initiative, unveiled by Hannatu Musa Musawa, the minister of art, culture, tourism, and the creative economy, aims to solve the critical funding and knowledge gaps plaguing the country’s vibrant creative sector.
The fund will also provide a combination of equity investment and hands-on mentorship to early-stage companies operating in music, film, and creative technology.
Audu Maikori, the chairman of Chocolate City Group, explained the fund’s necessity, citing the unique challenges creative entrepreneurs face.
“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,” he said.
“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, the vice-chairman, emphasised that beyond funding, the initiative will equip creatives with mentorship and business structures that sustain long-term independence and global competitiveness.
“Capital alone doesn’t build successful companies. We’re offering hands-on mentorship in rights management, contract negotiation, and sustainable business practices,” he said.
“These are the structures that allowed us to remain independent while competing globally.”
Musawa commended the initiative, noting that private sector support is vital to the growth and sustainability of Nigeria’s creative industry.
“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,” she said.
Chocolate City launched the fund in partnership with Co-Creation Hub (CCHub) and Argentil Capital Management Limited.
Ojoma Ochai, managing director of CCHub, said the partnership merges Chocolate City’s creative expertise with CCHub’s startup infrastructure to help creative entrepreneurs grow sustainably.
“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,” Ochai said.
Gbenga Hassan, managing partner of Argentil Capital Management Limited, said the fund addresses the lack of structured financing for viable businesses in Nigeria’s creative sector, despite its rapid growth in music and film.
“Nigeria’s creative economy shows strong fundamentals with 63% 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,” he said.
“The Founders Fund addresses this real market inefficiency where viable businesses in both music and film cannot access appropriate financing.”
Applications for the fund will open later this month, targeting startups and companies with proven traction, clear business models, and potential for job creation.
The organisers said the selection process will prioritise long-term sustainability over rapid expansion.
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