Nigerian music and entertainment company Chocolate City Group has inaugurated a $1 million “Founders Fund” to support creative startups across Nigeria, offering equity investment and operational mentorship.

In a statement on Monday, the group said the funds would target early-stage companies in film, music and creative technology.

The fund, inaugurated during the group’s 20th anniversary celebration on Sunday in Lagos, was also aimed at addressing the financing challenges faced by entrepreneurs in the growing creative economy.

The fund is being implemented in partnership with Co-Creation Hub.

Speaking at the event, the Minister of Arts, Culture, Tourism and Creative Economy, Hannatu Musawa, said that private sector investment was critical for creative economy development.

“Nigeria’s creative industries can contribute significantly to economic diversification and youth development, 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.

Chairman of the group, Audu Maikori, said that the fund was designed to address gaps the organisation faced while building Chocolate City.

Mr Maikori said the funds would target companies that combine creative vision with business discipline.

“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. To solve this, we’re providing patient capital from people who’ve built sustainable creative businesses in this market,” he said.

Also, the vice-chairman of Chocolate City, Paul Okeugo, emphasised that capital alone does not build successful companies.

Mr Okeugo said, “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.”

The managing director of CCHub, Ojoma Ochai, said the partnership became necessary because it combined Chocolate City’s industry knowledge with CCHub’s startup development infrastructure to create comprehensive support for creative entrepreneurs.

“We understand what creative entrepreneurs need to scale sustainability,” he said.

The fund, which will open for applications this month, will focus on startups that have demonstrated traction, possess clear business models, and show potential for job creation.

The selection criteria would also prioritise sustainability over rapid scale.

(NAN)