“Tech has become an equaliser in the industry”: Chocolate City Music’s CEO on AI, virality, and the future of music
For Abuchi Peter Ugwu, CEO of Chocolate City Music, one of the country’s most influential music labels, the biggest shift in Nigerian music over the last decade isn’t just the sound, it’s the technology. From the era of hawking CDs in Alaba to tracking TikTok spikes and Spotify data, the business of music is now deeply shaped by tech. “Technology changed everything,” Ugwu told TechCabal in an interview. “Ten years ago, if you had a hit, you had to go to Alaba.” Now, a tweet can spark a global record, he adds. But virality alone doesn’t pay. Ugwu, who has over two decades of experience in the music industry, argues that most artists chasing TikTok fame won’t see a dime without structure in the new streaming economy, where a million Nigerian streams are worth less than a sixth of the same number in the UK. “Streaming is just the entry point,” he says. “Only the people with real systems actually get paid.” While his team uses AI for CRM, influencer analysis, and marketing, he’s skeptical about AI-generated songs replacing human creativity. “Music has to be true,” he says. “Once you take away the human element, you take away what makes music.” This interview has been edited for length and clarity. From your experience in the music industry, particularly in the last decade, how would you say technology has changed the landscape of the industry? Technology changed everything. For example, one of the breakout artists of my era was CKay’s “Love Nwantiti”—that song went about eight times platinum. You could see technology was key to that growth. Ten years ago, once you had an album or a hit song, the way you pushed it was to go to Alaba. And when there was traction on the album, you sold it to Alaba and collected ₦3 million for the masters. I managed MI for about 15 years. MI’s biggest album—MI2: The Movie—was sold to Alaba. I think Ahbu Ventures paid ₦3 million for the rights. We didn’t get any money after that, and that album sold 30,000 copies in 30 minutes or so. It was an amazing album, but we made only ₦3 million. In that era, there was Facebook, and Twitter started popping, and now we’ve transitioned to platforms like Apple Music, Spotify, and other DSPs. Before we even talk about DSPs, social media came and changed the game: the way we market, the way we consume, and the way we create content. First of all, you need to think about technology, especially social media, as an equalizer. Before, if you had a good song, you had to go to Lagos, which has over 40 radio stations, and distribute the song to each of them. But now with technology, once someone has a good following, they just tweet, and everybody picks it up. That’s why we have artists who can compete because technology has brought everybody together. It’s an equalizer. You don’t need so many resources or money; with the right strategy, you win. Then you come back to the platforms. It is quite unfortunate that the two biggest platforms—Spotify and Apple Music—don’t sell music. They sell subscriptions. Spotify’s model is the subscription. Apple Music sells subscriptions and data. Music is the end product. Because people need to come to the platform to experience music, they care about what song has the most demand, not necessarily what’s the best. Now we’re in this era. Technology shapes everything we do. Even with us as a team, what I always tell people is that there’s a sweet spot between creativity, technology, and data. When you hit that intersection, you win. From your experience at Chocolate City, how has the rise of streaming platforms changed your operation, in terms of talent discovery, music distribution, and revenue generation? We need to start thinking about streaming as the entry point. You know how everybody just cares about streaming—everyone wants that viral effect to make money and cash out. But even when you get that viral effect, only people who have structure really get paid. For example, if you go to TikTok every day, there are so many people that stream. But how do you convert that streaming into getting paid? You have to have the proper structure. When you have that, you can monetize properly. Now, if you want your song to blow, you try to make it go viral on TikTok. But TikTok doesn’t really pay for streams. So you might get that viral set, but not money. And when you dig into streaming, you realize one stream in the UK is worth six streams in Nigeria. If you get 6 million streams here, that’s equivalent to 1 million streams from the UK or the US. They pay us a fraction of what they pay international markets Streaming has come to stay. It has given us the opportunity to be creators and create value from our work. It has moved the industry to the next point. 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Read More8.8 million Nigerians projected to own CCTV cameras, security tech in their homes by 2029
Before Mike (whose name has been changed for anonymity) employed domestic staff in his home, he used to think owning a CCTV was only for big organisations. Now, his home in Ogun State is rigged with smart cameras linked to his mobile phone. “It’s given me less anxiety, especially when artisans are around,” he says. In a country with a high insecurity rate like Nigeria, home surveillance is not a hard sell. The numbers don’t lie: Between May 2023 and April 2024, over 600,000 deaths were recorded in Nigeria as a result of insecurity according to the Nigerian Bureau of Statistics. On the Global Terrorism Index, Nigeria had the 7th highest number of fatalities in the world in 2024 due to insecurity. Security agencies in the country, such as the police force, have not helped in mitigating the situation. In 2023, Nigeria’s police force was ranked as the 4th worst performing in the world. It is no surprise then that Nigerians are turning to technology to fill the gaps left by poor security systems in the country. According to Statista, 8.8 million Nigerian households are expected to be outfitted with smart security by 2029, reaching a penetration of 17.5% from 15.5% in 2025. This security market includes surveillance products such as security cameras, motion sensors, and programmable and remote control door locks. CCTVs are becoming the go-to surveillance option for many Nigerians battling the insecurity in the country. A digital “Third Eye” Iyanu Adewole, who lives in a duplex in Kwara State, refers to CCTV technology as a “third eye”. “I don’t necessarily feel safe because of it,” she says, “But it helps you see what you normally can’t.” Installed in 2019 after a burglary, her basic camera setup is solar-powered and has helped her solve one theft case. “Someone stole money from my dad’s bag in the living room, so we went to review the [CCTV] footage and discovered who it was,” she says. In Kwara State specifically, security is threatened by terror groups, bandits, farmer-herder conflicts and violent cult incidents. All these exist despite the state’s leaders’ efforts in trying to control the insecurity situation. Esther Salami, who lives in Ogun State, says she received her solar-powered CCTV camera as a gift. Though she admits it hasn’t changed how she feels about her safety, she believes it is still a necessity. “It would always be useful in case you need to double-check something,” Salami adds. newsletter Who’s buying? According to CCTV salesman Adekunle Oluwatosin Fatunde, owner of Ibadan-based Comotech Digital Forensics Company Ltd, demand for CCTV has spiked, the financial costs notwithstanding. “People tend to buy CCTV after an incident,” he says. While Fatunde says that installation costs typically range from ₦180,000 to ₦300,000 ($112.5-$187.5), Mike says that he spent over ₦2,500,000 ($1,562.5) to install CCTV cameras in his Ogun state duplex. Nigerians with smaller budgets are not left out. Fatunde says customers who can’t afford a full installation package often scale down on their purchase. This means fewer cameras, no remote viewing, or a “pay small-small” plan. Some Nigerians even opt for solar CCTV systems—comprising a camera, storage card, and customsied solar panel—though these have limitations indoors. “Sometimes, the kind of roofing or design of a building may not allow the panel to adequately receive sunlight,” says Fatunde, impacting the functionality of the installed system. Still, not every Nigerian who buys a CCTV does so solely to prevent theft. Adewole, who installed a camera to monitor guests in the other unit of her duplex, is a testament to this. The same applies to Tolu (whose name has been changed for privacy), based in Ogbomoso, Oyo State. She says owning a CCTV “has increased my sense of safety in such a way that I can confidently receive guests and also send my [domestic] staff home to run errands for me while I supervise her at the comfort of where I am.” Little hiccups Attempting to solve insecurity problems hasn’t come without its challenges for these Nigerians. Tolu and Mike both agree that poor internet connection is one of the biggest problems they face in implementing CCTV supervision in their homes. There’s also the question of whether to disclose their use of CCTV surveillance to guests or domestic staff. When asked if she tells her domestic help about the cameras, Tolu says she withholds this information for fear that they might “do something funny to the camera.” The same goes for Salami and Adewole, who say they don’t tell people outrightly, though visitors and domestic staff can see the cameras. Taking matters into their own hands Salami believes Nigerians are installing cameras because they don’t fully trust the Nigerian police or security services. Others like Adewole are more diplomatic: “It’s not about trust. It’s self-added protection.” Fatunde opines that Nigerians are only taking a more proactive approach to their security. Tolu is an example: she does not wait for an incident to happen before monitoring her CCTV feed. “I actively monitor the CCTV feed,” she says. Both Mike and Oyo-based Tolu—who spends close to ₦50,000 ($31.25) monthly on internet usage for her CCTV, and spent over ₦750,000 ($468.75) on installation—say they believe owning a CCTV at home is a necessity, not a luxury. In a country where citizens have turned towards private solutions to address systemic deficiencies, if Statista’s projections hold true, by 2029, millions more will join these Nigerians in proactively surveilling their homes especially for an increased sense of security and control over what takes place in their private spaces. *Exchange rate used is $1 to ₦1,600
Read MoreAccess Holdings’ Oxygen X disburses ₦152 million in loans, posts ₦805 million profit in first year
Oxygen X Finance Company Limited, the digital lending subsidiary of Access Holdings Plc, disbursed ₦152 million ($95,000) in consumer loans in 2024, marking a strong entry into Nigeria’s increasingly competitive digital lending market. Last year, Access Holdings became the first major bank group to launch a standalone digital lending company, with Oxygen X turning a pre-tax profit of ₦805 million ($501,000) in less than a year, contributing to the group’s five profitable non-banking subsidiaries. According to an investor presentation on April 23, 2025, Oxygen X also generated ₦4.1 billion ($2.6 million) in revenue during the period, driven largely by the rollout of its Credit Lifecycle Management Product (CLMP) and cash loan offerings introduced in Q4 in 2024. “Loan products launched last year include Commercial Loan Contract and Mortgage (CLCM), salary loans, and turnover loans,” said Bolaji Agbede, acting managing director and group CEO of Access Holdings, at the presentation. 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Oxygen X also reported total assets of ₦7.5 billion ($4.7 million) and liabilities of ₦2 billion ($1.2 million). Though details on the types of loans disbursed remain limited, the group said its lending decisions are informed by data points ranging from customer demographics to social impact and credit performance. “Platform stability and cybersecurity measures are other key areas of focus. These are the types of metrics that are evaluated,” Agbede added. Built on the backbone of Access Bank’s earlier Quickbucks platform, which served around seven million users, Oxygen X aims to evolve beyond a bank-affiliated tool into an independent fintech. Its services now target individual consumers and micro, small, and medium-sized enterprises (MSMEs), with lending options including personal loans, solar and device financing, car loans, and payday advances. Oxygen X aims to attract customers beyond Access Bank, positioning itself as a competitor to existing digital lenders such as Carbon and OPay, which are already active in Nigeria’s high-growth credit market. Access Holdings’ fintech push appears to be paying off more broadly. Hydrogen Payment Services Company Limited, its payments subsidiary, reported a 312% increase in profit before tax, rising from ₦158 million ($98,000) in 2023 to ₦1.78 billion ($1.1 million) in 2024. Hydrogen, which handles switching, payments, and merchant services, processed over ₦49.1 trillion ($30.5 billion) in transactions in 2024.
Read MoreIn a sparse fintech landscape, two new startups prepare to make their mark in Botswana
In 2023, Botswana’s fintech ecosystem could be described as nascent; only one recognised startup was operational at the time, and the Fintech Association of Botswana (FAB) had just launched. Today, two promising players, N2 Pay and Pathetic Inc., are preparing to make their mark in the market—each offering distinctive approaches to digital finance in a country where mobile money and digital banking are still taking shape. Despite the formation of FAB, both startups have largely charted their own paths, reflecting the early-stage nature of the fintech environment in Botswana. Lemo Seitei, Secretary General of FAB, sees potential in these startups and noted that FAB is working to shape a more enabling ecosystem through partnerships, incubation programs, and regulatory support, which may have indirect implications for these emerging startups. “While the association is helpful in bringing people together, I have not yet received direct support, mainly because I am not a member and the association is still quite new to have done a lot,” says Ntungamili Keagile, founder of N2 Pay. 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It offers instant bank-to-bank transfers, crypto payments at point-of-sale, and a sleek app built to work even with minimal data. N2 Pay has bootstrapped the development phase, secured partnerships with Visa and Absa, and is in talks with mobile operators to integrate USSD and data-free access. Their ambitions include implementing blockchain-based stablecoin transactions and using AI for fraud detection. The startup recently partnered with Morocco’s Lacaisse.ma to bring digital POS solutions to local merchants. “Our product is ready; we just need a banking license,” says Keagile. Costing two million Pula (around $150,000), the licence, which will permit the processing of electronic transactions and mobile banking, is crucial before they are able to launch in the market. While this creates a catch-22 situation where investors demand quantifiable results, which are unattainable without the necessary regulatory clearance, N2 Pay has several potential investors and recently got an offer for a Simple Agreement for Future Equity (SAFE)agreement over $100 000. “This is far from sufficient to cover licensing, operational, and marketing costs but we are yet to meet potential investors from South Africa and Europe,” Keagile says. FAB, while not directly funding startups, acknowledges the regulatory and funding challenge. According to Seitei, FAB is in discussions with regulators—including the South African Reserve Bank—to streamline fintech licensing and develop a unified regulatory framework for the Southern African Development Community (SADC). While these efforts are ongoing, they hint at longer-term benefits for startups like N2 Pay. Blending sustainability with fintech Taking a different route is Pathetic Inc., a startup built around incentivising sustainable behaviour. “People underestimate the power of incentives. When you reward sustainable habits, you change behaviour – and that change scales,” said Co-founder, Larona Seditse Pathetic Inc. rewards eco-friendly actions with digital loyalty points that can be redeemed for goods or converted into monetary value. They are already collaborating with financial institutions and telecoms to issue Visa-enabled debit cards integrated with their rewards ecosystem. Community-focused digital literacy campaigns and referral programs are also in the pipeline, using
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👨🏿🚀TechCabal Daily – Zap, zapped, fined
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy Workers’ Day! Here’s to every hard worker—that’s you reading this and every member of our newsletter team—out there killing it at work. You’re a rockstar! In case you didn’t know, the Workers’ Day celebration dates back to the 19th century, when labour groups fought for the right not to die at work. Thanks to them we now have 8-hour workdays. Previously, people often worked 12–16 hours a day, six days a week! Make sure to take some time off to breathe, reflect, and maybe say a prayer for the bold visionaries who made 9–5 working hours possible. And if you’re already too rested and need a nudge to get back in the zone, you can borrow inspiration from today’s My Life in Tech subject, Adora Nwodo, who is refusing to rest on her laurels. After all, the reward for work is more work. Also, if you’re in Lagos, don’t forget, ride-hailing drivers are set to commence their strike today. We have some heavy hitters in today’s dispatch. Let’s get to it! CBN zaps Paystack with $155,400 fine Bolt launches electric tricycles in Lagos MTN Nigeria was profitable again in Q1 2025 Nigeria’s Web3 sector needs more investor faith World Wide Web 3 Events Fintech Nigeria’s Central Bank (CBN) zaps Paystack with $155,400 fine Paystack CEO Shola Akínlade unveiling Zap/Image Source: Paystack Paystack has run the gamut. Just a little over a month since launching Zap, its first consumer product, and fending off a trademark dispute with Zap Africa, the fintech has now been slapped with ₦250 million ($155,400) by Nigeria’s Central Bank (CBN) for a licensing violation. Here’s where they went wrong: To function as a deposit-taking product, a financial institution must possess a microfinance and banking license. Paystack holds a switching and processing license, which allows it to route financial transactions between banks and other institutions but not to hold customer funds, thereby breaching the CBN’s licensing rules. CBN—which has increasingly relied on fines to enforce regulatory compliance—claims that Paystack’s newly launched product violates its regulatory license by operating as a wallet. For the curious (or confused): A wallet typically refers to a digital account that stores consumer funds, allows payments and transfers, and often provides financial management tools. However, Zap does not hold user funds directly but operates in partnership with Titan Trust Bank, which is licensed to hold deposits. The fine is Paystack’s largest publicly known regulatory penalty since it received CBN approval in 2016. It also underscores the risks fintechs face as they expand beyond business-to-business payments into consumer-facing products. The fintech has yet to make any public comments so far. But one thing is clear: with great power comes regulatory accountability. Seamless Global Payments With Fincra. Issue accounts in NGN, KES, EUR, USD & more with one integration. Send & receive funds seamlessly across borders; no more banking hassles or complex conversions. Create an account for free & go global today. Mobility Bolt launches electric tricycles in Lagos Lagosians, perhaps ditch danfo! Electric kekes are coming to your Bolt app/Image Source: Bolt Nigeria If you live in Lagos, a new “tricycle option may start appearing when you try to book a ride on the Bolt app. Starting May, Bolt is rolling out 25 electric tricycles—yep, kekes—in Lagos, built in partnership with SGX Mobility. It’s the company’s first EV trike rollout in Nigeria, expanding on its existing keke operations in Jos and Uyo. The numbers? ₦3.2 million ($2,000) per vehicle, with a ₦208,000 ($130) down payment and flexible lease terms (₦32,000∼$20 weekly or ₦156,000∼$97 monthly). Battery swaps cost about ₦6,500 ($4) daily—nearly half the fuel cost for a regular keke. Drivers can own their rides in 18–24 months, all while dodging rising petrol prices and maintenance headaches. A better alternative? Tricycles, locally known as “keke,” are ubiquitous in Lagos. They’re cheap, nimble, and already fill mobility gaps in neighborhoods underserved by traditional taxis or buses. But petrol-powered kekes are increasingly expensive to operate. Bolt says it expects its EV alternative to outperform petrol models on margins within 12–24 months, as drivers complete their lease terms and operational savings compound. Bolt’s pitch is simple: better driver economics, lighter costs, and a lease-to-own model that isn’t Moove or LagRide. Lower commissions (15% versus the usual 25%) and predictable payments might just make this a smarter deal. Still, Lagos drivers will be the real test. If it clicks, Bolt’s ready to take it across Nigeria—and even into Ghana, Uganda, and Tunisia. The EV future? It might just come in three wheels. Never miss an update from Paystack Subscribe to Paystack for a curated dose of product updates, insights, event invites and more. Subscribe here → Telecoms MTN Nigeria was profitable again in Q1 2025, thanks to the tariff hike Image Credit: MTN Things have probably started turning around for MTN Nigeria, the country’s largest telecom operator with 84 million subscribers. After a dismal 2024 financial year where it lost revenue and ended in the red, CEO Karl Toriola’s yellow team is smiling to the bank again—and at the bank (hold this thought). For the second consecutive quarter, MTN Nigeria was profitable. In Q1 2025, it made ₦133.7 billion ($83.4 million) in profit from a total revenue of ₦1.06 trillion ($660 million). If you haven’t had time to read the report yet, here are other mind-boggling numbers from the telecom operator’s quarter: MTN Nigeria’s top revenue sources remained data and voice. Data pulled in ₦528.98 billion ($330 million); this grew by 51.6% from Q1 2024, showing that MTN made more money from Nigerians subscribing data, thanks to the telecom tariff hike. Voice pulled in ₦353.13 billion ($220.3 million); this grew by 30% from Q1 2024, also showing the effect of the higher tariff on calls kicking in. SMS revenue, fourth-highest on the list, also brought in ₦39.58 billion ($25 million). Interestingly, MTN Nigeria also grew its revenue from value-added services (VAS) by 57%, reaching ₦34.62 billion ($22 million)
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