Transacting at the speed of light 
Scaling Fintech in Nigeria: Governance as an Accelerator for Sustainable Growth
By Fiyifoluwa Olorunsola, Head of Business, Hydrogen
Nigeria’s fintech landscape has undergone a dramatic transformation over the past decade. In the early 2010s, the race to capture market share meant that growth was often pursued at all costs—with corporate governance viewed as a roadblock. Today, however, governance has evolved into a strategic enabler that underpins sustainable growth and builds indispensable trust in an industry dealing with people’s hard-earned money.
Evolving Corporate Governance in Nigerian Fintech
In the nascent stages of Nigeria’s fintech boom, startups were laser-focused on rapid customer acquisition and aggressive fundraising. Governance and regulation were frequently seen as impediments to growth. But as the fintech space has matured, the industry has experienced a fundamental shift:
- From Roadblock to Accelerator: The early emphasis on growth has given way to recognizing that robust governance is not a burden—it’s an accelerator. By embedding proper risk frameworks and clear operational structures from the outset, fintech companies can scale more sustainably and attract top-tier investors and value-adding partners.
- Trust as a Strategic Asset: Trust is paramount in fintech, where customers entrust their finances to digital platforms. A strong governance framework is critical in building that trust. Today, governance is increasingly integrated into every facet of solution building, making it a strategic pillar rather than an afterthought.
Key Lessons: Governance and Culture as Growth Catalysts
Drawing on over 14 years of experience in financial services, including significant involvement in the fintech industry, I’ve learned two overarching lessons that have reshaped our approach at Hydrogen:
- Governance is an Accelerator, Not a Brake:
The fintech industry requires adaptability, robust governance, and a focus on people. Startups that integrate governance early are better positioned to scale sustainably. By implementing clear risk frameworks and operational protocols, these companies foster an environment where innovation can thrive alongside compliance. - Culture is the First Line of Defense:
While policies and procedures are essential, the real strength lies in cultivating a culture of accountability and ethical decision-making. When leadership and employees internalize these values, compliance becomes a natural outcome rather than an imposed burden—driving a thriving organization from within.
Navigating Nigeria’s Complex Regulatory Landscape
Operating in Nigeria’s highly regulated payments and processing sector demands more than just robust internal frameworks—it requires strategic relationships with regulators. At Hydrogen, our approach is built on a fundamental mindset shift: we view regulatory bodies as strategic partners rather than obstacles. This approach has yielded several effective strategies:
- Proactive Engagement: We maintain regular, open dialogue with key regulators, such as the Central Bank of Nigeria (CBN). By engaging early and often, we ensure our policies align with regulatory expectations and preemptively address any potential concerns.
- Compliance by Design: At Hydrogen, compliance isn’t an afterthought—it’s embedded into our product development process from day one. This “compliance by design” approach ensures that innovation does not outpace legal frameworks, thereby reducing the risk of costly retroactive fixes.
- Transparency and Trust-Building: Trust is built through consistent, transparent communication. We prioritize clear and unambiguous reporting, ensuring that all inquiries from regulatory bodies are met with timely and thorough responses.
- Industry Advocacy: We actively participate in regulatory forums and industry discussions. By contributing to policy dialogues and sharing our data-driven insights, we help shape a regulatory environment that balances security with innovation and supports financial inclusion.
The Road Ahead: Governance as a Strategic Imperative
The evolution of governance in Nigeria’s fintech sector demonstrates that robust governance is no longer a luxury—it is a fundamental requirement for long-term sustainability. At Hydrogen, our commitment is clear: we continue to embed strong governance and a culture of accountability across every facet of our business. This approach not only positions us as a leader in the fintech ecosystem but also drives broader industry innovation and financial inclusion.
By embracing governance as a catalyst for sustainable growth, Hydrogen is shaping the future of digital finance in Nigeria—building trust, fostering innovation, and creating a resilient ecosystem that benefits customers, investors, and the broader community alike.