Nigerian media entrepreneur and publisher of Ovation magazine, Chief Dele Momodu has revealed how he lost more than $500,000 after venturing into the restaurant business in Accra.
Speaking on the Building Wealth with Femi podcast, Momodu explained that the loss occurred during an attempt to diversify his investments beyond publishing. According to him, diversification does not always guarantee profit and can sometimes lead to significant financial setbacks.
Momodu said he established a restaurant called House of Ovation in Accra, envisioning it as a premium dining destination. The restaurant was fully equipped with modern facilities and staffed with experienced chefs to deliver a high-end culinary experience.
However, the project ran into serious logistical challenges. He revealed that equipment imported for the restaurant arrived in Ghana in January 2007 but remained stuck at the port for several years due to clearance delays.
“In October 2006, the goods arrived in a container in Ghana in January 2007. Do you know when they released it to me? I got it out in 2010,” Momodu recounted.
By the time the equipment was eventually released, the prolonged delays and mounting operational costs had severely affected the viability of the business, ultimately leading to the collapse of the venture and a loss exceeding $500,000.
Momodu said the experience served as a major lesson about the risks associated with diversification and the importance of patience and resilience in business.
