how to set up a paypal account to receive money in Nigeria

How to Set up a PayPal Account to Receive Money in Nigeria

If you do an online business and want to know how to set up a PayPal account to receive money in Nigeria, the best answer is here.

Obviously, a lot has been said on how to start an online business in Nigeria.

In fact, you will see a collection of 101 businesses you can do to make money online on this website.

But when it comes to receiving money online, most people are stuck.

It’s disappointing after selling a service to someone online, only for you to receive payment and realize you can’t.

There are third party services you can use to receive money online but none of them exist without some limitations, which make most small businesses suffer in Nigeria.

Even PayPal, which is a leading financial technology company in the world doesn’t make its entire services available for Nigerians.

According to Statista, PayPal served more than 377 million users with a total transactions of about $936 billion in 2020.

This achievement was lopsided because most Nigerian businesses and individuals still can’t receive money via their PayPal accounts in Nigeria.

FlutterWave entered a business collaboration with PayPal after seeing this problem and enabled merchants in Nigeria and Africa as a whole to do business online and receive payments from around the world via PayPal.

As it is now, receiving money with PayPal is no longer an issue if you know what to do.

Read Also: Review of eNaira and How it works

There are three ways to use PayPal for receiving payments in Nigeria and each of these would be discussed in this guide.

But before that, let’s quickly look at these critical questions about PayPal to make this guide easy for you to understand.

  • What is PayPal and how does it work in Nigeria?
  • What are the limitations of a Nigerian PayPal account?
  • Why do you need a PayPal business account in Nigeria?
  • What are the requirements for opening a PayPal account in Nigeria?
  • How can I use PayPal to send and receive money in Nigeria?

You can see that all these questions point to the subject of this discussion.

If you want to know how to open a PayPal account to receive money in Nigeria, you need to pay attention to the following.

What is PayPal and how does it work in Nigeria?

PayPal is an online payments platform used in more than 200 countries, most especially where online money transfers are supported as an alternative to the traditional checks and money orders.

The service is provided by an American company called PayPal Holding Inc, with headquarters located in San Jose, California, United States. 

When dealing with international customers, you need PayPal as your payment gateway.

A payment gateway can help you process online payments and receive money in your local bank account.

After creating an online presence for your business, nothing comes next except payment integration.

With PayPal, your customers can make a purchase on your eCommerce website and check out in one click.

Or in absence of an eCommerce website, you can still receive payments through PayPal if both you and your clients have a business account on PayPal.

All it requires to receive such payments is the email address with which you created your PayPal business account.

The customer will login to his account and use your email address to send the payment to you.

At the time of setting up your business account on PayPal, you will be required to link your ATM card – Mastercard, Visa, Verve or any.

Once the payment is done, your account will be credited and PayPal will alert you via your email address.

You can withdraw the money by visiting your bank or using the ATM card that will be linked to your PayPal account.

PayPal works as simple as making all forms of transactions possible without sharing financial information with anyone.

For this reason, most people prefer the PayPal payment option because the system is safe.

If your customers don’t feel safe making a transaction on your website with their ATM cards, having the PayPal payment option will serve a great job to close more sales.

By so doing, PayPal can protect the private data of the users from the risks of cyber attacks.

The system is designed to remove payment barriers which online merchants or freelancers have when dealing with foreign customers.

Meanwhile, PayPal is believed to be the biggest, most flexible, reliable and cheapest global payment gateway among the others.

It officially came to Nigeria in July 2014 and was recently listed among the approved 47 international money transfer operators in the country.

The Central Bank of Nigeria (CBN) in a tweet in March 2021 released a list of approved online money transfer operators in Nigeria and PayPal made it to the list.

This didn’t remove the limitations of using a PayPal Nigerian account as most users still can’t receive payments with their local accounts.

Limitations of a Nigerian PayPal account

When you open a normal Nigerian PayPal account, whether it’s a business or personal account, all you can do is to send, but can’t receive money with it.

On your attempt to use a Nigerian PayPal account to receive money, the sender will receive an error message that says the sender should visit your website and make the payment via your checkout page.

So, while Nigerians are being denied full access to PayPal services, it is difficult for most small businesses to recover their ROI in the country, most especially those who don’t have an ecommerce website.

The fact is PayPal works based on where you leave.

So, the way it works in Nigeria is quite different from the way it works in the US or any other part of the world.

And the best reason for this is the government policy regulating online money transfer operators in different countries.

Over a period of time, Nigerian users have found a solution to this problem. 

And after discovering the secret, I had to suspend my previous PayPal account and creat another one which has all the features to send and receive money in Nigeria.

With the kind of PayPal account I’m about to show you how to open, you can also generate and send invoices to your customers online. 

Most people who know this technique won’t be happy I’m letting the cat out of the basket.

I had to share the knowledge because payment is one of the common problems of online business which need urgent attention in Nigeria.

Why need a PayPal account in Nigeria

Many people both in Nigeria and abroad prefer PayPal to any other payment platform because it has so many benefits which others don’t have.

The benefits are many but a few of them will be discussed.

So, if you know how to open a PayPal account in Nigeria, you could enjoy the following benefits that come with your PayPal account.

Customer trust

If you run an eCommerce or any platform that requires users to pay for a product or service online, a lot of risks are involved.

For this reason, the customers’ number one concern is to avoid sharing their card details online and prevent their data from being stolen or compromised by hackers.

Taking care of the customers’ concerns will make you gain their trust and get more sales.

With the PayPal payment method, you can cut out the need for your customers to use their card details or private data and reduce the risks involved.

Online payment

Another benefit of using PayPal in Nigeria is to enable you to pay for items you buy online with ease.

When the need arises, PayPal is a reliable and very secure payment platform for paying for things you buy.

You can credit your wallet or enable PayPal to deduct directly from your card whenever you initiate a payment through a merchant’s website.

This will help you reduce the risk of using your credit or debit card on every website you visit.

Easy to use services

PayPal supports almost all types of ATM cards, be it credit or debit cards, including Mastercard, Visa card, Verve card and so on.

You can even add and verify more than one card on your PayPal account without any hassle.

The service is available to mobile and desktop users. That is, you can use any internet enabled device to access the platform and complete your transaction.

This gives the platform a lot of flexibility and great user experience.

Reversible payment

Another benefit of opening a PayPal account is to be able to reverse payments when there is a dispute between sellers and buyers.

You may need to request a refund if you didn’t get what you paid for through the PayPal platform.

This feature works after PayPal intervenes and justifies the reversal.

If the circumstance truly warrants getting your money back, PayPal will reverse the payment from the account of the seller and you will have your money back.

Payment integration

You can integrate PayPal into your website to raise funds towards a course or generate payments for a product or service.

This will require having an eCommerce website.

With PayPal, you can receive money sent to you by another PayPal user in your local bank account without stepping out of your home.

What are the requirements for opening a PayPal account in Nigeria?

It’s free to open a PayPal account either for personal or business use in Nigeria.

The only thing that is required to set up a PayPal account is just your personal information, which is to guarantee that you are real and the bona-fide owner of the account.

So, you must have the following information ready before you can set up and verify your PayPal account in Nigeria.

  1. Means of identification: PayPal requires you have a valid means of identification, preferably any government issued identification card such as national identity card, driver’s license or international passport.
  2. Full name: It must be noted that you cannot use a fake name to set up a PayPal account. Your name must be as it appears on your ID card.
  3. Valid email address: PayPal works with user email addresses to send or receive money. So, you need a valid email address to be on the platform.
  4. Phone number: In the course of opening a PayPal account, you need to add your phone number. You will need it to verify your account.
  5. Contact address: PayPal wants to know you and where you can be located. So you have to make this available. It can be your business address or home address.
  6. Valid ATM card: PayPal will use your ATM card to connect your account to your bank account. So the card information is required to withdraw or deposit money in your bank account.

Once you have all this required information ready, you are qualify to create your PayPal business account and start receiving money from any part of the world while you are in Nigeria.

You can use your smartphone or computer to launch the PayPal website and begin the registration.

All information you share with PayPal stays on PayPal, it is safe and protected.

How to set up a PayPal account to receive money in Nigeria

If you want to create a PayPal account that receives money in Nigeria, you have three good options.

One is to use a third party payment platform called FlutterWave, the other is by integrating PayPal into your website and the last is direct payment through your PayPal account.

Using PayPal with FlutterWave

The collaboration between FlutterWave and PayPal makes it possible for you to use PayPal for receiving money in Nigeria.

This method doesn’t require you as a merchant to have a PayPal account. But at least, your clients must be a PayPal user to make this work for you.

All you have to do to unlock this opportunity and start receiving payments from PayPal users from any part of the world is to open a business account on FlutterWave.

PayPal has a very big user base as a leading global payment platform. So, no doubt your client is one of the 377 million plus PayPal users.

The implication is that your clients will have to own an account on FlutterWave and use the PayPal payment option on the platform to send money to you.

FlutterWave will help you receive the payment from the PayPal account of your clients and send it to you through your FlutterWave account.

To use FlutterWave for receiving money on PayPal, take the following steps:

  1. Visit FlutterWave website here.
  2. Create a business account (follow the prompt instructions to complete your registration).
  3. Once your account is ready, go to your FlutterWave account dashboard to enable your preferred payment method.
  4. Select PayPal from the list of options available on the platform.

After setting up your account on FlutterWave, PayPal will start displaying on your checkout page.

This will make it possible for your customers to use the option for paying you.

So when a payment is made to your account, FlutterWave will help you receive the payment from the PayPal account of your clients and send it to you through your FlutterWave account.

Integrating PayPal into your website

Another way to use PayPal for receiving funds in Nigeria is having an eCommerce website and integrating PayPal into your checkout page.

This makes it easier for your clients to pay you directly from your website cart with PayPal.

It means, before you can receive payments with this approach, the sender must have bought something, product or service via your website.

And secondly, if you don’t have a PayPal account that can receive money, this approach may not work.

In finding a solution to this problem, the third solution is recommended. Much on this would be discussed in the next section.

What is important here is to look at the requirements to create an eCommerce website and integrate PayPal payment option into it.

  1. Design a product or service you want to sell. 
  2. Find a name for your website (it can be your brand name or product name).
  3. Choose any of these web hosting providers to register your domain name and host your website.
  4. Install an eCommerce platform to your website.
  5. Integrate PayPal into your website.

You can learn more from our dedicated guide on how to create an eCommerce website or hire us to do it for you.

We provide very affordable web and app solutions for businesses.

Direct PayPal account

It’s obvious that not all PayPal accounts can receive money in Nigeria. 

If you have been looking for the best way to receive funds via PayPal here in Nigeria, there are steps you need to take and beat the limitations posed to Nigerian users.

This is different from the normal account you open when you visit the PayPal website.

And it doesn’t involve the use of a VPN and falsely claiming to be in another country while you’re in Nigeria.

With the following steps, setting up a PayPal account to receive money in Nigeria is possible.

Choose a foreign PayPal platform

To create a PayPal account in Nigeria, you need to choose a foreign PayPal platform. For the purpose of this guide, the three countries I recommend are:

  • South African PayPal
  • Lesotho PayPal
  • Iceland PayPal

Using any of the three foreign PayPal platforms has been tested and confirmed okay for opening a business PayPal account in Nigeria.

So, the following links will take you to any of the platforms you prefer to use for opening your Nigerian PayPal account.

South African PayPalVisit South African PayPal platform to create a Nigerian PayPal account
Lesotho PayPalVisit Lesotho PayPal platform to set up a Nigerian PayPal account
Iceland PayPalVisit Iceland PayPal platform to open a Nigerian PayPal account

Assuming you prefer Iceland PayPal, click the Iceland PayPal link to launch the platform.

Once the page finishes loading, go to the site menu at the top right of the page and click “Sign Up” to set up your account.

Select account type

PayPal offer two different account types – personal account and business account.

Since the scope of this guide is all about how to set up a PayPal business account, the account type to select is Business Account.

Creating a PayPal business account will give you more business opportunities, most importantly the chance to receive payments directly from another PayPal user via the same platform.

Select your account types and click the Button “Continue” to proceed.

Enter your valid email address

Enter a valid email address that you would like to use to sign up for your business account on PayPal.

Make sure you have access to the email address because PayPal will be sending important information to you through it.

On the next page, create a strong unique password for your account and remember not to lose the password or share with public.

When you’re done with the password, click Continue button to proceed to the next page.

Describe your business

It’s important to describe your business with suitable and relevant keyword by specifying the kind of product or service you offer.

If you have a website, try to add it.

Your CC Statement Name can be your first name and it’s required.

PayPal doesn’t want you to add your business information for nothing. They want to be familiar with your business.

So, you have to be constructive and give relevant information as required so PayPal can include all necessary features in your account.

Enter your personal information

Another important step for opening a PayPal business account is to identify yourself.

What you’re meant to do here is to personalize your account.

Add your date of birth, and Nigeria as your nationality. It doesn’t matter you’re using a foreign PayPal platform.

You’re to select Nigeria and add other genuine information about you, including your valid business address and phone number.

If your business doesn’t have an address yet, you can use your home address and valid zip code of your area.

When you’re done, click Submit button.

On the next page, PayPal will welcome you to their platform and show you a brief summary of all the features of your account.

This is an indication that you have successfully set up your PayPal business account.

Confirm your email address

Before you can begin sending or receiving money on your account, you’re required to confirm your email address.

Your email address is what you will use for any transaction you make through PayPal. So you have to confirm it first.

Look through the menu of the site at the top left of the page and click Summary.

You will see your PayPal account balance and some other information.

Click See details.

On the next page, you will see all your details, go through it and make sure all the information is correct. Then click Submit.

Go to your email inbox and look for PayPal confirmation email. Open the mail and click “Confirm Your Email” button.

You will be redirected to your PayPal login page.

Your email address will display by default. Just enter you valid password and then click “Confirm Email Address” to login to your account.

Link and confirm credit or debit card

Linking your card to your PayPal account is the last step to setting up your PayPal account. You have to do this right away to get the scoop of your account.

Go to the menu of the site as seen in the image above and click Summary.

On the page, look for “Link and confirm credit or debit card” and follow the prompt instruction.


Without leaving the corners of your home, you can get customers from any part of the world.

That sounds so good!

But when it comes to receiving payments from foreign customers, the story is different.

You may not be able to receive money via PayPal in Nigeria, except you know the way around the limitations which PayPal places on Nigerian users.

If you would like to tap into this opportunity, you need to know how to set up a PayPal account to receive money in Nigeria. 

All you need to know is in this guide.

16 thoughts on “How to Set up a PayPal Account to Receive Money in Nigeria”

  1. I have successfully created the Iceland PayPal account, they requested I verified with my National ID which I did.

    Please which debit card can I use to link my account.


    1. Good to know this guide worked for you. You can link any debit card issued by a Nigerian bank. Verve, Mastercard or any is okay. All the best.

  2. Thank you very much for this guide, I’ve been looking for a way to get around PayPal’s restrictions, but does this mean I can only receive payments if it’s a business account ?

    Are personal accounts only allowed to send money but not receive payments ?

  3. I created a Nigeria account but unfortunately the location set to Nigeria. I receive payment into it but it’s not showing in balance. Please what’s the solution?

    1. Sorry, you can read and follow the instructions in this article for the best solution to create a PayPal account in Nigeria.

  4. Thanks very much. I followed the procedures and I opened using Iceland. I linked my UBA card and everything was successful. I am only waiting to see when I will receive payment too and the process of cash out.

  5. Awosanmi Emmanuel

    Good morning Sir/Ma,
    Thanks for your concerns about the opening of paypal account for the less privileges people. God Almighty will continue to empower you.
    Sir, I want you to help me to open personal PayPal account from one of the country you mentions in your discussion because as am trying to open personal PayPal account the site takes me to U.K site. Please kindly help me out. And I also need your further advice on this issue. Once again thanks for your concern. Remain bless in the Lord. Thanks.

    1. You can send me a message on whatsapp and let us see how we can help. But in case you want to solve this problem, I will suggest you visit the site with a computer and click on the iceland link provided in the article.

  6. Hi, it seems the process you listed here is quite different when filling the form now. You will require the phone number of any of the countries listed above.

    1. No, not different. If truly you followed the steps as discussed in the article, your Nigerian phone number will suffice with Iceland. Check again for any error you made. All the best.

  7. I created a business paypal account using Iceland foreign paypal as you suggested and I was restricted from having full access to my paypal account as a result of this I can’t make use of my paypal now, please solve this matter for me, and may God bless you.

    1. Hi, consider starting the registration all over and make sure you don’t jump any step as I recommend. All the best.

  8. I have a Lesotho paypal account but the problem is that I want to send money to another paypal user and it requires me to get a Lesotho phone number in which I will have to get a code and all that… and that really sucks..

    1. You can use your Nigerian number… Just follow the steps as contained in this guide. Im currently using Iceland account with my Nigerian phone number and I send and receive money with the account. thanks

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