However, beneath the surface of this success lies a troubling trend: mismanagement of funds. This has eroded the very foundations of Nigeria’s music industry. These were the thoughts of Hanotu Weli, Head of Product, Absolute Risk Technology (ART), a United Kingdom based systems engineering and systems assurance consultancy firm with focus on energy, transportation, and technology sectors.
The firm, 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 The Guardian, 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.”
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 endeavours.
“Rather than use the resources to enhance production quality, fuel digital campaigns, or create compelling content, some executives prioritise personal gain, leaving the artist’s potential growth untapped.”
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.
“Cutting-edge ideas that could have revolutionised the market or catapulted Nigerian music to new heights go unnoticed, underfunded, and ultimately abandoned. Upcoming talents and entrepreneurs are particularly affected.”
Expressing optimism, Weli aver that there is still hope for the Nigerian music, 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.”
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 realised.
