PayPal Returns to Nigeria After 20 Years Through Paga

Nigerians can now receive money from PayPal for the first time in 20 years, thanks to a partnership with homegrown fintech company Paga. The integration lets users receive payments from over 200 countries, withdraw instantly in Naira, and shop globally without the workarounds they've relied on for decades.

PayPal shut out Nigeria in 2004 over fraud concerns, leaving freelancers and online businesses locked out of the global digital economy. For nearly two decades, Nigerians built informal solutions and turned to crypto alternatives just to participate in international commerce.

Now PayPal users in Nigeria can link their accounts directly to Paga wallets and access the full global payments network. They can keep balances in dollars or convert at market rates, receive payments from Venmo users in the United States, and shop at over 400 million merchants worldwide.

For businesses, the partnership opens access to customers in 25 currencies. Nigerian merchants can now accept international payments and settle them locally through Paga for spending, transfers, or bill payments.

The Ripple Effect

The timing tells a bigger story about Nigeria's digital transformation. The country's digital payments totaled $755 billion in 2024, up from $423 billion the year before, proving the infrastructure can now support cross-border commerce at scale.

PayPal chose Paga for its 21 million users and robust API infrastructure. But there's a deeper connection: Paga founder Tayo Oviosu built his company because PayPal wasn't available. "PayPal is what inspired Paga," Oviosu told TechCabal. "I shared with people, like, why can't we build a PayPal for Africa?"

Two decades later, PayPal is returning through the very company created to fill the gap it left behind. Other global players are following similar paths: Visa investing in local payment rails, American Express partnering with Flutterwave, and international processors securing licenses to offer Naira collections.

Paga processed $12 billion across 169 million transactions in 2025 and expects volumes to surge with international inflows. The partnership brings foreign currency into Nigeria's formal financial system, improving liquidity while giving millions access to global opportunities they've been excluded from for years.

The next phase will let businesses accept PayPal directly through Paga's payment gateways for larger transactions. For now, individuals can link accounts immediately, while business owners can connect through individual Paga accounts.

After years of waiting, workarounds, and frustration, Nigerians finally have a direct path to the global digital economy.