PAYPAL has officially announced its return to Nigeria and has gone live through a groundbreaking partnership with local fintech leader Paga.
The partnership is expected to enable millions of users to seamlessly receive international payments and access their funds in naira for the first time in over two decades.
However, there are concerns that issues raised by some customers, before its initial exit, have not been addressed by the Central Bank of Nigeria (CBN).
For nearly two decades, PayPal operated a policy of exclusion against Nigeria. Citing concerns about fraud, it allowed payments to leave the country but blocked the vital function of receiving money.
Some analysts described its actions as unacceptable with many remote workers, freelancers sidelined by PayPal in financial operations.
Consequently, many social media users criticised PayPal over the claim of “seized money”, while emphasising that regulatory test be conducted by the CBN.
“PayPal shouldn’t get to keep all the money they seized and still be able to return to the Nigerian market successfully years later,” an X user @Oloye tweeted in response to PayPal’s return.
“If that happens, then the only lesson they-Paypal will take away is that they can do it again and come back when they please,”@Oloye tweeted further.
Another user@Designatedsvr stated that PayPal’s comeback is a pointer to how political and regulatory authorities treat Nigerians with levity.
“PayPal simply learned about our collective gullibility from our politicians, hence the ‘I don’t care’ attitude, “he stated.
A former customer, Adiva Farida, expressed worry over PayPal’s inability to address issues raised by customers.
“Just checked their profile and there hasn’t been anything remotely close to addressing the complaints and bad experiences Nigerians are sharing about their services,” Farida stated.
On the heels of these concerns, The ICIR reached out to the CBN spokesperson, Sidi Hakama, but got no response from calls and WhatsApp messages sent to her.
Notably, PayPal’s partnership and new integration allow Nigerian users to link their PayPal accounts directly to their Paga digital wallets, facilitating cross-border receipts from PayPal-supported markets worldwide.
The recipients can withdraw these global earnings locally in naira, shop with international PayPal merchants or utilise the funds for everyday needs such as bill payments, bank transfers, or spending via Paga’s integrated Visa card, creating a true bridge between worldwide income and Nigeria’s domestic economy.
This development marks a major milestone for freelancers, online entrepreneurs, and small businesses that have long relied on workarounds to handle PayPal transactions, while empowering merchants to tap into PayPal’s global network of over 400 million users and expand their reach internationally.
The announcement of return made by Paga and PayPal underscores a shared commitment to enhancing financial inclusion and cross-border commerce in one of Africa’s fastest-growing digital payments markets.
For Nigerian merchants and small businesses, the partnership opens doors to PayPal’s vast network of over 400 million users globally, facilitating international sales and business expansion.
“We are proud to make this integration live and available to users across Nigeria. Whether you are a freelancer receiving international payments, a business selling online, or a consumer shopping globally, this collaboration makes it easier to access and use global funds locally, in a way that’s simple, secure, and built for our markets,” said Tayo Oviosu, founder and group CEO of Paga.
Senior Vice President, Regional Head and General Manager of PayPal Middle East and Africa, Otto Williams, added, “We have been intentional about partnering with local innovators like Paga and developing solutions that help Nigerians earn, spend, and grow. This collaboration helps strengthen the broader payments ecosystem by supporting local innovation, expanding financial inclusion, and enabling more consumers and businesses to participate confidently in the digital economy.”
Nigeria’s digital payments landscape is experiencing rapid growth, with transaction values hitting N657.8 trillion in 2023 and over 30 million active mobile wallet users, according to a 2024 Novatia Consulting report.
With more than 21 million users and a robust API infrastructure, Paga is well-positioned to scale PayPal’s services nationwide through its trusted local settlement network and digital wallet ecosystem.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.