The Nigerian music and tech sectors of the creative economy have long been heralded as hotbeds of creativity and innovation, boasting remarkable artistes and groundbreaking tech startups that are making waves on the global stage. From Afrobeats’ rise to global prominence and fintech startups earning international recognition, the potential is undeniable.
Beneath the surface of this success lies a troubling trend, mismanagement of funds which has eroded the very foundations of this industry. These were the hardline thoughts of Hanotu Weli, Head of Product, Absolute Risk Technology (ART), a United Kingdom base systems engineering and systems assurance consultancy firm with focus on energy, transportation, and technology sectors.
Through its innovation, Sustainability Assessment, Reporting and Learning Intelligence (SALI), an advanced AI-powered solution designed to automate sustainability assessments, streamline reporting processes, and enable organisations make smarter, data-driven decisions, ART has promoted sustainable development and international trade with significant milestones in sustainability.
Speaking with NaijaTimes, Weli, noted that poor financial practices are scaring investors away from Nigeria’s music and tech ecosystem. He added that in today’s regulatory landscape, organisations are increasingly challenged to meet stringent sustainability reporting standards, such as the EU’s Corporate Sustainability Reporting Directive (CSRD), which impacts over 50,000 entities.
He said, “In recent years, a concerning pattern has emerged. Funding meant to propel marketing efforts, product development, and business growth is being misused or misallocated. Whether it’s a music executive diverting label-provided advances for personal indulgence or a tech founder prioritizing image over sustainable development, the outcomes are often the same, failure to deliver return on investment (ROI). For investors, this is a major red flag.
“What was once viewed as a high-potential, fast-growing market is now being approached with increasing skepticism. In industries where trust is paramount, this loss of confidence has far-reaching consequences.”
According to Weli, investors don’t simply inject funds out of goodwill; they expect to see measurable growth, scalability, and profitability. He noted that in both the music and tech sectors, funding is intended to support brand building, product development, and ultimately profit generation.
“When funds are mishandled, the opportunity for growth is not just lost; the entire ecosystem begins to falter. In the Nigerian music industry, this often plays out through advances intended for promotion and marketing being squandered on extravagant lifestyles or non-promotional endeavors.
“Rather than use the resources to enhance production quality, fuel digital campaigns, or create compelling content, some executives prioritize personal gain, leaving the artist’s potential growth untapped.
A similar scenario unfolds in the tech ecosystem. Startups flush with venture capital; misuse their funds on superficial expenses like luxury office spaces, flashy PR stunts, or excessive perks. Rather than investing in product development or user acquisition, they burn through capital without achieving key milestones for sustainable success,” the ART executive stated
He continued, “When funds consistently disappear without yielding tangible results, investors naturally grow more cautious. They begin to withdraw, not just from individual projects but from the broader market.
“This creates a ripple effect where fewer new ventures receive funding, and even the promising ones struggle to secure the capital they need. This growing hesitancy impacts more than individual companies or artists, it stifles the entire industry.”
“Non-compliance jeopardizes organisational credibility, consumer trust, and long-term viability. A loss of trust makes investors less willing to take risks, which in turn slows down innovation.
“Cutting-edge ideas that could have revolutionized the market or catapulted Nigerian music to new heights go unnoticed, underfunded, and ultimately abandoned. Upcoming talents and entrepreneurs are particularly affected.
“Even those with the most promising ideas struggle to secure investment because they are part of an ecosystem where money is perceived to be mismanaged. This creates a discouraging environment forgot innovation, leaving many with great potential overlooked by cautious investors.”
Expressing optimism, Weli aver that there is still hope for the Nigerian music and Fintech industries, but swift action is necessary. “Restoring investor confidence will require more than simply delivering on projects; it will demand a cultural transformation towards responsible financial practices.
“Artistes and tech founders must be equipped with the tools and education needed to manage funds effectively, ensuring that every dollar is used to grow the brand, develop the product, or reach new audiences.
Investors, too, must play a role by implementing more stringent due diligence processes and supporting the long-term vision of the projects they back, rather than pushing for immediate returns,” he stated.
According to him, both the music and tech sectors’ hold immense potential to shape Nigeria’s future. But without financial discipline, structured policies, and a commitment to long-term growth, that potential may never be fully realized.
“It’s time to look beyond short-term wins and focus on building industries rooted in innovation, trust, and sustainability. Only then can we unlock the full promise of these ecosystems and restore investor confidence in Nigeria’s dynamic creative and tech landscapes,” he enthused
