PayPal has announced plans to re-enter the Nigerian market in 2026 through its new platform, PayPal World. The move signals a major shift in the company’s Africa strategy after years of limited operations in Nigeria due to regulatory and compliance concerns.
The announcement follows major improvements in Nigeria’s financial regulation framework, positioning the country as a more secure and attractive market for global payment providers.
Improved Regulatory Environment in Nigeria
Nigeria has made strong progress in financial regulation and compliance in recent years. The introduction of the Bank Verification Number and National Identification Number has strengthened the Know Your Customer and Anti Money Laundering systems.
In addition, Nigeria’s removal from the Financial Action Task Force grey list confirms its progress in combating financial crime and improving transparency. These reforms have helped rebuild international confidence in the country’s financial system.
PayPal’s New Entry Strategy
Rather than launching traditional PayPal accounts, the company plans to focus on wallet interoperability. This means Nigerian users will be able to make international payments through PayPal using existing local digital wallets.
The approach removes the need for users to open foreign-based PayPal accounts. It also aligns with Nigeria’s growing digital payment ecosystem and supports smoother cross-border transactions.
This model allows PayPal to operate within local regulations while offering global payment access.
Nigeria’s Expanding Fintech Market
Nigeria’s fintech sector continues to grow at a rapid pace. The industry was valued at 1.13 billion dollars in 2024 and is projected to reach 4.24 billion dollars by 2033.
As of February 2025, Nigeria hosts more than 430 fintech companies, a 70 per cent increase from early 2024. The country accounts for 28 per cent of all fintech companies in Africa and attracts 4 per cent of fintech investment deals on the continent.
This strong growth makes Nigeria a strategic market for global financial technology firms.
Impact on Local Fintech Companies
PayPal’s return is expected to reshape the competitive landscape. Some local fintech companies may view the move as an opportunity for partnerships and global expansion.
Others may face increased competition, especially in cross-border payments and merchant services. However, industry experts believe competition could lead to better pricing, improved service quality, and faster innovation.
