Dele Momodu recounts how failed Accra restaurant project cost him over $500,000 (Video)

Nigerian media entrepreneur and publisher of Ovation magazine, Dele Momodu, has revealed that he lost more than $500,000 after investing in a restaurant business in Accra, Ghana.

Momodu shared the experience during an appearance on the podcast Building Wealth with Femi, where he reflected on the financial risks associated with expanding into unfamiliar industries.

According to the businessman, the loss occurred during a period when he was attempting to diversify his investments beyond media and publishing.

“The time I lost money was when I tried to diversify, people always think that diversification means you will make more money. No, unless you are very lucky, you can lose all your money while trying that,” he said.

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Momodu explained that the venture, known as House of Ovation, was launched in Accra with ambitious plans and significant investment.

“I tried to do a restaurant business in Accra, Ghana, and I lost over half a million dollars,” he disclosed.

Despite investing in high-quality facilities and hiring experienced culinary professionals, the project did not perform as expected.

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“Maybe I went into a business I did not quite understand, it was called the House of Ovation in Ghana. Very beautiful, great ideas, good food. I employed the best chefs, everything that could go wrong went wrong,” he stated.

The former Nigerian presidential aspirant also pointed to logistical setbacks as a major challenge for the venture. He recalled paying $60,000 to a South African company to customise specialised catering equipment for the restaurant.

“I paid $60,000 to a company in South Africa to customise my industrial catering equipment. My plates, my spoons, my forks, my knives, of course, refrigerators, everything,” he said.

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However, he revealed that the equipment, which arrived in Ghana in early 2007, remained stuck at the port for several years.

“In 2006 October, 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,” he added.

Momodu’s experience highlights the financial risks entrepreneurs may face when expanding into unfamiliar sectors, even when projects are launched with significant capital and planning.