Paga, Nigeria’s pioneering fintech company, and global payments leader PayPal have launched live account linking for Nigerian users, unlocking seamless cross-border payments and local Naira access after years of limited service.

The integration allows Nigerians to directly connect PayPal accounts to Paga wallets, receive funds from PayPal’s vast network spanning over 200 markets and 436 million active users, shop with international merchants, and withdraw balances for everyday needs like bill payments, bank transfers, or Visa card spending.

This ends longstanding “send-only” restrictions, empowering freelancers, online sellers, and small businesses to earn globally and spend locally without cumbersome workarounds.

Nigerian merchants gain a competitive edge, tapping PayPal’s 400 million-plus customer base to accept payments in up to 25 currencies, with funds settling swiftly via Paga’s nationwide infrastructure. Currency conversions occur at market-driven willing-buyer-willing-seller rates, positioning the service against informal channels and crypto alternatives. Paga’s upcoming merchant gateway enhancements will support larger business transactions directly.​

Paga Founder and Group CEO Tayo Oviosu described the rollout as transformative: “Whether you’re 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.” PayPal’s Senior Vice President for Middle East and Africa, Otto Williams, added: “We’ve been intentional about partnering with local innovators like Paga… to expand financial inclusion and enable more consumers and businesses to participate confidently in the digital economy.”

The move bolsters Nigeria’s explosive digital payments sector, where 2023 transaction values hit ₦657.8 trillion ($730.9 billion)—averaging ₦54 trillion monthly—and active mobile wallet users exceed 30 million. Backed by Central Bank of Nigeria reforms like IMTO guidelines and fraud protections, it taps a $25 billion annual remittance flow and projects an $18.3 billion digital economy by year-end.

Paga, with over 21 million users, CBN nationwide licensing, and a $250 million valuation, serves as the ideal partner through its API ecosystem and settlement network. To start, users log into the Paga app or site, link their PayPal account (personal or business via individual Paga setup), and begin transacting instantly.

This partnership not only bridges global finance to local realities but also accelerates Nigeria’s fintech dominance, fostering SME growth and diaspora remittances in Africa’s largest economy.

The Nigeria Inter-Bank Settlement System (NIBSS) is looking into offline payment solutions as part of its efforts to increase financial inclusion and reach Nigerians who have limited or no access to mobile data.

The project was announced by Ngover Nwankwo, NIBSS executive director for business and products, at the 2026 CHBO Conference in Lagos.

Nwankwo pointed out that the rapid expansion of digital payments must be matched by purposeful inclusion initiatives, cautioning that innovation should not exclude groups of the population that still rely largely on cash.

She emphasised that cash is still an important element of Nigeria’s economy and that digital and cash-based payments must coexist to safeguard disadvantaged users while boosting efficiency for digitally connected customers.

Nwanko also commended banks for operational performance, particularly during the December 2025 cash demand period, which she said was met with few public complaints.

Lloyd Onaghinon, Bankers Warehouse Plc,had similar sentiments on the enduring need of cash. He explained that cash usage remained high globally due to cultural, demographic, and trust-related factors

However, he cautioned that surplus currency outside the banking system undermines financial intermediation and monetary policy efficacy, demanding greater cooperation among regulators, banks, and other stakeholders.

Director Solaja Olayemi, representing the Central Bank of Nigeria, stated that around 90% of Nigeria’s cash remained outside the banking system and encouraged banks to collaborate with fintechs and microfinance institutions..

He added that fintechs with substantial agent networks, such as Moniepoint, OPay, and Kuda, are better positioned to drive inclusion, with some companies now holding national licenses.

Central Bank of Nigeria (CBN) has approved the upgrade of operating licences for major FinTech companies and Microfinance Banks (MFBs), including Opay, Moniepoint MFB, Kuda Bank, Palmpay and Paga, to national status, formalising their nationwide operations after fulfilling regulatory compliance requirements.

The development addresses the rapid expansion of these digital platforms, which have leveraged mobile technology and extensive agent networks to serve millions across Nigeria, outgrowing their previous regional or state-level licences.

Yemi Solaja, Director of the CBN’s Other Financial Institutions Supervision Department, announced the upgrades during the annual conference of the Committee of Heads of Banks’ Operations (CHBO) in Lagos.

Institutions like Moniepoint MFB, Opay, Kuda Bank and others have now been upgraded. In practice, their operations are already nationwide, Solaja stated, highlighting the mismatch between prior licensing scopes and actual service footprints.

He underscored the critical need for physical customer support infrastructure, especially for informal sector users who form the bulk of their clientele, noting that Most of their customers operate in the informal sector. They need a clear point of contact if any issues arise.

With national licences, these institutions must adhere to elevated standards, including a minimum capital base of N5 billion for national MFBs, establishment of dedicated offices for complaint resolution, and rigorous Know-Your-Customer (KYC) protocols to bolster consumer protection and financial system stability.

The reforms align with CBN’s broader strategy to integrate large-scale digital operators into a robust regulatory framework commensurate with their reach, while harnessing their potential to deepen financial inclusion across Nigeria’s underserved populations.

This milestone follows intensified oversight, exemplified by 2024 penalties of N1 billion each imposed on Moniepoint and Opay for KYC non-compliance during routine audits, alongside similar actions against other players like Kuda and Palmpay, which prompted operational overhauls.

Such measures reflect the apex bank’s commitment to balancing innovation with risk management in the fintech sector, which has revolutionised access to banking services for millions in the informal economy through agent banking and mobile wallets.

Industry observers view the national upgrades as a vote of confidence in these trailblazers, while signalling that sustained compliance remains non-negotiable for their continued dominance in Nigeria’s digital finance ecosystem.