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Getting paid is the part of freelancing nobody teaches and everybody panics about. You have done the work, the client has agreed to your rate, and now you need $400 to arrive in an account you can actually spend. In Nigeria, that involves solving a regulatory constraint before it involves anything else.
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The PayPal situation
In 2020, Nigerian authorities instructed banks to close accounts linked to crypto exchanges and moved sharply against informal foreign currency flows. PayPal receiving for Nigerian accounts was effectively blocked as part of that tightening. Sending still works.
This is the single fact that shapes the entire payment stack. If you are planning around PayPal for incoming international client payments in Nigeria, it will not work. Ghana and Kenya retain functional PayPal receiving, which is why you will see them described as more convenient for international payments.
Set up your receiving account before you land your first client. Scrambling to receive money after a client has agreed creates delays and makes you look unprofessional.
Your options compared
| Method | Receive from | Get into naira | Cost | Speed |
|---|---|---|---|---|
| Wise | Any international client | Naira bank account | 0.4-1.5% conversion | Same day to 2 days |
| Payoneer | Upwork, Fiverr, Amazon, direct | Nigerian bank account | ~2.75% conversion + withdrawal fee | 1-3 business days |
| Paystack | Nigerian clients, local invoices | Naira, direct | ~1.5% per transaction | Instant to next day |
| Flutterwave | 30+ African countries | Local currency | Varies by corridor | Same day |
| Grey | International clients | Naira via virtual account | ~0.8% capped at $10 | Same day |
| Stablecoins | International clients, crypto-native | Exchange to naira | Network plus exchange spread | Minutes |
The stack to set up
Nigeria
- Paystack for local naira invoices. No monthly fee, pay per transaction, and the business registration requirement means you need a registered business — individual developers cannot open merchant accounts directly.
- Wise for international clients who pay by invoice. Best exchange rate available to you, and it links to Nigerian bank accounts.
- Grey if you receive through marketplaces, because it handles Upwork and Fiverr payouts with a ~0.8% fee capped at $10.
- Flutterwave if you work with clients in more than three African countries, or you want a virtual dollar card for your own subscriptions.
Kenya
M-Pesa for local work, Wise for international. Wise withdraws directly to M-Pesa in Kenya and to Kenyan bank accounts, which makes it the natural default for cross-border work.
Ghana
Paystack or Flutterwave for local cedi invoices, Wise or Payoneer for international. Grey is widely used in Ghana because it handles cedi-compatible withdrawals.
South Africa
Wise for the best rate into rand. Paystack also operates in South Africa. The banking system makes this the easiest market to receive international payments in.
What it really costs
Take a $400 invoice and follow the money all the way into a naira account.
| Route | You receive | After conversion | You lose |
|---|---|---|---|
| Wise to naira | $400 | ~₦634,000 | ~₦6,000 |
| Payoneer to naira | $400 | ~₦620,000 | ~₦20,000 |
| Local bank transfer (poor rate) | $400 | ~₦600,000 | ~₦40,000 |
| Stablecoin on-ramp | $400 | ~₦628,000 | ~₦12,000 |
The spread between the best and worst route on a $400 invoice is around ₦34,000. Over twelve invoices, that is ₦400,000 — more than most freelancers in this market make in a month. Choosing the right receiving method is not a minor optimisation.
Historically, African freelancers were losing up to 20% of their earnings before the money reached their pockets, largely through local bank exchange rates and multi-day SWIFT waits. That has largely closed, but the choice of provider still matters.
The tax question
Two things to know, and you should check the current specifics with a professional before filing anything.
- Service exports are treated differently from domestic income. Senegal's CGU regime for auto-entrepreneurs, for example, applies a 5% rate on revenue below a threshold and treats service exports under a specific regime with no VAT. Other countries have their own treatment — Nigeria's small business regimes and Ghana's tax bands differ.
- Keep records from day one. Invoices, platform statements, conversion records. Reconstructing a year of freelance income at filing time is miserable, and platforms increasingly report transaction data to tax authorities.
Where you are resident matters more than where your client is. A Nigerian resident earning from a US client is generally taxed on worldwide income under Nigerian rules, with specific exemptions for foreign currency earnings held offshore. The mechanics are not complicated, but they are worth one hour with an accountant once you are earning consistently.
What to set up this week
The priority order
First: Paystack, so you can invoice local clients today. Business registration is required — start that process, it takes longer than the account setup. Second: Wise, because it is the cheapest way to receive an international payment and takes an afternoon. Third: a virtual USD card, so you can pay for your own tools without losing another 2% on every subscription.
Everything else can wait until you have a client who needs it. But do not leave this until after you land work — a delayed first payment is how good client relationships start badly.