PayPal has officially marked a historic return to Nigeria, a move expected to significantly enhance cross-border payments, support digital commerce, and strengthen financial inclusion. The development comes amid renewed optimism in Nigeria’s foreign exchange market, as the naira recorded its strongest appreciation against the United States dollar in two years.
According to data released by the Central Bank of Nigeria (CBN), the naira strengthened to ₦1,396.99 per dollar at the official foreign exchange market on Thursday. This marks its best performance since the introduction of the Electronic Foreign Exchange Matching System (EFEMS). The local currency gained ₦3.49 against the dollar on a day-to-day basis, reflecting increased market confidence and improved liquidity.
At the parallel market, commonly referred to as the black market, the naira also showed positive momentum. It appreciated by ₦5, closing at ₦1,480 per dollar, compared to ₦1,485 recorded the previous day.
Reports indicate that the naira has now posted four consecutive days of gains at the official FX market, signaling a sustained rally rather than a one-off improvement. Analysts attribute this trend to tighter FX management, improved transparency under EFEMS, and growing external inflows.
Further supporting the naira’s performance is Nigeria’s rising external reserves. CBN data shows that the country’s reserves climbed to $46.11 billion as of January 28, 2026, up from $46.04 billion recorded on January 26. The steady increase in reserves provides stronger backing for the local currency and enhances the central bank’s ability to stabilize the FX market.
PayPal’s return is expected to complement these gains by easing international transactions for Nigerian freelancers, SMEs, exporters, and digital entrepreneurs. With improved access to global payments and a strengthening naira, Nigeria’s digital economy may experience renewed growth in the months ahead.