Nigerian Fintechs Struggle with Leadership and Governance – Your Money Could Be at Risk
Nigeria’s fintech sector is booming, attracting attention with funding rounds, unicorn valuations, and rapid digital innovation. Yet, behind the headlines lies a critical leadership and governance problem that threatens both investors and users.
Despite their growth, many fintech companies operate like one-person shows, critical decisions happen behind closed doors, oversight is minimal, and accountability is often treated as an afterthought.
Governance Gaps in Nigeria’s Fintech Space
According to Adebare Akinwunmi, tech lawyer and partner at CrestHall Attorneys, the warning signs in Nigeria’s startup ecosystem are impossible to ignore:
“The Nigerian fintech and startup space is full of cautionary tales that could have turned out differently if there had been proper board oversight and governance structures in place.”
Many past scandals and collapses in the sector stem from a single fundamental issue: decisions made without checks, finances handled without scrutiny, and strategies pursued without challenge. Even more concerning are the crises that never make the news, such as internal financial mismanagement, leadership disputes, and regulatory breaches.
The Founder-Centric Model
Most Nigerian fintechs start with a visionary founder who funds operations, builds the product, and makes every critical decision. While this centralised approach works during early stages, it becomes a liability as the company scales.
“As the company grows, the same centralised decision-making becomes a liability,” says Akinwunmi. “Without proper oversight or legal structuring, the founder’s dominance becomes embedded in the company culture, making change difficult.”
Experience Gaps and Leadership Challenges
Akinwunmi highlights an experience gap among many founders:
- Many come from startups with weak corporate systems.
- Leadership, delegation, and governance are learned skills, often missing in early-stage founders.
- Informal practices that worked in small teams are replicated in larger, more complex organisations.
The intoxicating nature of power can also exacerbate the problem. Founders often resist shared decision-making, believing they are protecting the company’s vision, when in reality, this limits growth and potential.
“This is a form of corporate self-sabotage,” Akinwunmi notes. “The refusal to delegate or empower others ultimately undermines the very success the founder is trying to protect.”
Legal and Financial Consequences
The governance vacuum in fintechs carries serious legal and financial risks:
- Lack of transparency exposes investors and users to potential losses.
- Weak oversight increases the likelihood of regulatory breaches.
- Centralised decision-making can stifle innovation and scalability.
Akinwunmi stresses that transparency and accountability are not just buzzwords; they are the foundation of sound corporate governance and the protection of stakeholder interests.
Why It Matters for Investors
As Nigeria’s fintech sector continues to grow, investors, customers, and partners must be aware of these leadership risks. Proper governance frameworks, independent boards, and structured oversight are critical to safeguarding both capital and the future of Nigeria’s fintech ecosystem.
