In recent times, Nigerian fintech startups have emerged as crucial players in addressing financial exclusion across the African continent. Yet, as this vibrant sector matures, the rapid growth previously witnessed is now tempered by increasingly rigorous regulatory demands.
This shift underscores the critical need for fintech companies to implement strong corporate governance frameworks, rigorously comply with evolving regulations, and foster clear, honest communication with their clientele.
These vital issues were the focus of an insightful panel discussion held on October 16th, 2025, during the Moonshot by TechCabal conference in Lagos.
Under the theme “Scaling, Compliance, and the True Cost of Growth in African Fintech,” industry experts stressed that adherence to regulatory standards has become a cornerstone for long-term viability in the fintech ecosystem.
Ejike Kanife, Editor at TechNext, steered the conversation, which offered practical strategies for navigating regulatory hurdles. The panel featured seasoned professionals including Tomi Oduyemi of Cardtonic, Toni Akinmolayan from Busha, and Lukman Bello representing Paystack.
Navigating Market Entry and Building Community Confidence
Expanding into new territories is a natural step for fintech companies aiming to scale, but each market comes with its own regulatory nuances. Panelists pointed out a common pitfall: fintechs frequently overlook the importance of understanding local trust factors and compliance intricacies specific to each jurisdiction.
Tomi Oduyemi remarked, “Many startups mistakenly apply uniform compliance frameworks across borders, ignoring the unique trust-building elements that influence user adoption in different regions.”
She emphasized that beyond merely obtaining licenses and meeting regulatory criteria, fintechs must invest in cultivating trust through comprehensive procedures and clear, accessible documentation. Trust, she noted, is a vital component of effective compliance.
While the financial burden of compliance-including legal consultations, operational shifts, and technical upgrades-can be daunting for emerging companies, founders can strategically manage resources to sustain growth without compromising regulatory adherence.
From the cryptocurrency domain, Toni Akinmolayan acknowledged the rising costs associated with compliance, pointing out that regulatory obligations intensify as the user base grows.
He suggested that startups explore partnerships or leverage platforms already compliant with regulatory standards. This strategy allows fintechs to scale efficiently while acquiring compliance expertise, transforming regulatory adherence into a strategic advantage.
“As your customer base expands, so do your compliance duties. Collaborating with licensed platforms via APIs that handle compliance and transactions can help startups minimize expenses and sustain their growth momentum,” Akinmolayan explained.
Building Synergistic Relationships with Regulators
For Nigerian fintech enterprises to flourish, establishing trust with both investors and regulatory bodies is paramount.
Lukman Bello of Paystack highlighted the significance of openness and proactive dialogue. He encouraged startups to view regulators as partners rather than adversaries, emphasizing their mutual goal of protecting the financial system.
Startups often face the challenge of balancing rapid innovation with the methodical pace required for licensing, Know Your Customer (KYC) compliance, and consumer safeguards. Nonetheless, obtaining the necessary licenses and nurturing regulatory relationships can pave the way for further innovation.
Bello recommended that fintechs engage regulators early in the product development cycle, invite them to demonstrations, and respond swiftly to audit recommendations to build credibility and trust.
“Startups that embrace regulators as collaborators tend to develop more robust and sustainable enterprises,” Bello noted.
Addressing the challenges posed by fragmented regulatory environments across African countries, Tomi Oduyemi offered a realistic outlook on cross-border fintech expansion.
“While a unified continental regulatory framework would be ideal, it is often unfeasible since each nation designs policies that reflect its unique cultural and local realities,” she explained.
Instead of waiting for a pan-African regulatory consensus, Oduyemi advised fintechs to concentrate on building cooperative relationships and shared regulatory information systems within regional economic communities.
“By strengthening compliance domestically, fintechs can more easily earn regulators’ trust when entering other African markets,” she concluded.