IrokoTV, once dubbed the “Netflix of Africa,” is facing a financial meltdown, with founder Jason Njoku’s bank accounts frozen over unpaid licensing fees amid wider concerns about the company’s past spending and market missteps.
According to a report by Startup Lagos, the Federal High Court in Lagos ordered an interim freeze of Njoku’s accounts after Mauritius-based Cote Ouest Audiovisuel Maurice claimed $68,780 in unpaid debts, stemming from licensing agreements for telenovelas.
This legal blow follows a turbulent few years for IrokoTV, which exited Nigeria in 2023 after what Njoku himself called a “$100 million mistake.” He had previously admitted the platform's business model was unsustainable in the Nigerian market due to low subscriber conversions and mounting operational costs.
In the UK, where IROKO Limited was registered, Companies House filings reveal additional red flags. A compulsory strike-off was issued in 2019, suspended only after a creditor intervened to recover funds. As of 2024, the company is again under a “proposal to strike off” status with overdue accounts.
IrokoTV’s collapse has been blamed in part on alleged executive mismanagement. The Startup Lagos article details claims of extravagant spending by top officials, with reports of “globetrotting” and security convoys, even while staff battled basic tech issues.
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The situation echoes wider transparency issues plaguing some Nigerian startups. Scandals involving investment platforms like Agropartnerships and PorkMoney, which allegedly defrauded investors of billions, have spurred regulatory scrutiny. Nigeria’s SEC has repeatedly issued warnings against unregulated investment schemes.
Commenting on these patterns, Techpoint Africa previously warned that mismanagement among prominent founders threatens investor trust in the African tech ecosystem.
As IrokoTV reels from financial blows and reputational damage, industry analysts suggest it serves as a cautionary tale for startups prioritizing growth over governance. Whether Njoku and IrokoTV can recover from this fallout remains uncertain—but the impact on investor confidence is already being felt.
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