How Nigerian freelancers reduce payment friction with foreign companies

Adeolu Titus Adekunle

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If we are being real, Nigerians already have a bad PR in the freelancing space. If you’ve been in this space for a while, you might have had an experience where the recruitment process was going smoothly until they found out you are a Nigerian. Often, it is not you; it is them. At other times, the issue is how you pay, which makes foreign companies sceptical about hiring from Nigeria.

The news of PayPal partnering with PAGA to support direct withdrawals into a local naira wallet triggered many Nigerian freelancers with negative experiences with the platform. Many shared stories of how their accounts were restricted, and they lost their money despite multiple appeals. This summarises the unfortunate reality for many freelancers until fintech payment platforms emerged to simplify international transactions.

However, this is not the only factor causing payment friction with foreign companies. Here is how Nigerian freelancers are reducing payment friction and building more reliable global work setups.

Also read: Top remote jobs for Nigerians in 2026

What causes payment frictions between Nigerian freelancers and foreign companies?

Before solving the problem, it helps to understand it. Payment friction usually comes from:

Limited international banking support: Many local banks struggle with inbound foreign transfers.
Forced currency conversion: Payments are often converted immediately to naira at unfavourable rates.
High fees and hidden charges: Intermediary banks and payment processors take cuts along the way.
Payment delays: International wires can take days or even weeks.
Client’s limitations: Some foreign companies can only pay into local bank accounts in their own countries.

How to avoid payment frictions when working with foreign companies and international clients

To have a hitch-free freelancing experience, you need to put measures in place to reduce or bypass these challenges.

Choose payment platforms that foreign clients already trust

Foreign companies prefer payment methods that are familiar, compliant, and easy for their accounting teams to use. You can reduce friction by aligning with those preferences. For example, many clients are already familiar with PayPal as a digital payment option. With their recent partnership with Paga, it is worth considering. However, you should be aware of the high platform fees and risk of account restrictions.

Also read: How to withdraw PayPal funds in Nigeria at the best rates

Use multi-currency accounts instead of traditional banks

One of the most effective ways Nigerian freelancers reduce friction is by using multi-currency accounts rather than relying solely on local banks. With a multi-currency account, Nigerian freelancers can:

Receive USD, EUR, or GBP directly from foreign clients
Hold funds in those currencies without immediate conversion
Convert to naira only when exchange rates are favourable
Withdraw locally without international wire delays

This option removes unnecessary intermediaries and gives freelancers more control over their income.

Invoice in stable currencies

Charging in naira is usually a bad choice. The currency is subject to fluctuation and local economic factors. International companies might also have trouble paying in naira. Invoicing in stable currencies (USD, GBP, and EUR) reduces currency exchange risk, potential delays, and avoids ambiguity.

Have clear payment terms

Setting clear and proactive payment terms is one of the most effective ways to reduce friction and minimise payment delays when working with foreign companies. Use a formal contract that defines payment methods, currency, due dates, and late payment penalties. This way, each party understands what is required of them and when it is due.

Also read: Top sites to get international remote jobs in Nigeria

Managing global income more efficiently

As Nigerian freelancers work with clients across the US, UK, Europe, and beyond, payment efficiency becomes a competitive advantage. Reducing friction is important because it directly affects your income stability and client trust.

Many freelancers in Nigeria use Grey to manage international payments because it offers multi-currency accounts, competitive exchange rates, virtual USD cards, and swift withdrawals. This option avoids friction with foreign companies and lets you receive foreign income reliably while keeping more of what you earn.

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