PayPal Promised Nigerians A Fresh Start — Users Say It Feels Like The Past
When Precious received a USD 380.00 payment from a client in mid-February, she thought the long wait was finally over. The data analyst had linked her PayPal account to Paga weeks earlier, after the Nigerian fintech pioneer announced a landmark partnership with the U.S. payments giant, finally allowing users in the country to receive money after two decades of restrictions.
Then PayPal restricted her account.
“After filling everything, when money came in, PayPal still restricted the account,” Precious, who goes by @Prithee_p on X, posted on Feb. 19. “Now, they said they would hold the money till March 9 before releasing it despite filling out all their paperwork.”
She shared screenshots of her PayPal dashboard showing the hold. Her warning to fellow freelancers was blunt. “Avoid PayPal and Paga at all costs. Not only will you encounter unexpected issues, you’re at the risk of never receiving your funds.”
The same week, another user, Abdulaziz, who posts as @Utdpunter, received USD 290.00 from a client. PayPal closed his account immediately. When he appealed, the decision was final. His account was permanently deactivated, and his funds were caught in the company’s compliance machinery.
Tayo Oviosu, Paga’s founder and group CEO, responded directly to Abdulaziz on X. “We’ve had the opportunity to review with PayPal what happened and the decision made. While we cannot share the exact reasons, we are satisfied that the decision is a valid risk-based decision due to the behaviour observed on the account.”
For many Nigerians watching this unfold, the pattern felt painfully familiar.
PayPal first restricted Nigerian users in 2004, citing fraud concerns. For 22 years, Nigerians could only send money, never receive it; a policy that shut countless freelancers, digital creatives, and small businesses out of the global economy.
Over that period, workarounds emerged. Some used VPNs to mask their location. Others relied on friends abroad to receive payments and send funds through informal channels. Many simply lost opportunities.
The company attempted re-entry before. A 2014 partnership with First Bank enabled only outbound payments. A 2021 integration with Flutterwave helped businesses, but left individual users untouched.
This time, the company partnered with Paga, a 16-year-old Nigerian fintech that processed NGN 17 T (USD 12 B) in transactions in 2025. The promise was that Nigerians could finally link their PayPal accounts to a local wallet, receive international payments, and withdraw in naira. Oviosu had first pitched the idea to PayPal in 2013. It took 13 years to materialise.
Within hours of the January 27 launch, users reported the same problems that have plagued PayPal’s Africa operations for two decades. One user described logging in to test with a one-dollar payment. His account was immediately restricted. Another claimed to have submitted verification documents and was banned for life. Yet another described losing thousands of dollars between 2019 and 2021 after PayPal held his funds.
Oviosu pushed back against claims that the problems are widespread. “There is no widespread issue,” he told WT. “The complaints we’ve received so far largely relate to verification hiccups or immediate restrictions following initial deposits. In many cases, this suggests that PayPal’s internal compliance checks and automated risk monitoring systems are flagging certain activities for review.”
He noted that tens of thousands of users have successfully linked accounts and transacted without issue. “The average user has already withdrawn twice in just a few weeks,” he said. “The results are exceeding the initial expectations set by both our companies.”
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Paga has set up a dedicated email address for fully verified users experiencing issues. “We’re working with the PayPal team to support users who have unresolved issues actively,” Oviosu said.
The fintech vet also pointed out that the dual compliance process requiring both PayPal and Paga verification is designed to reduce risk flags while keeping the platform aligned with local regulations. PayPal’s global risk-scoring systems remain in operation, he added, as an industry-standard measure to protect users.
He added that Paga is investing in user education, and both companies have created dedicated resolution teams. For fully verified users with unresolved issues, the company is working with PayPal to escalate cases. He encouraged impacted customers to reach out via email for assistance.
But for some users, the damage is already done. “PayPal should be transparent with their procedures,” Precious, the data analyst from earlier, wrote. “Don’t make users think their account is okay, then limit or hold funds once received.”
The frustration is amplified by context. During PayPal’s long absence, Nigerian fintech companies built systems that work without mass account freezes. Paystack, which Stripe acquired for USD 200 M in 2020, processes billions in payments. Flutterwave, now valued at over USD 3 B, powers cross-border transactions across the continent. These companies filled the gap PayPal left behind.
Oviosu acknowledged the scepticism but defended the partnership. “Payment companies do their best to balance security and access, but this can sometimes result in unintended difficulties,” he said in a public note. “This partnership is about building a better path forward.”
For now, the path forward remains uneven. Some users are moving money smoothly. Others are watching funds sit frozen, waiting for a resolution that, based on two decades of history, may be slow to come.
Feature Image Credit: NurPhoto via Getty Images
