Can I use Paystack in Nigeria without CAC registration?

Paystack allows you to start in test mode without full verification. For live payments, you will need to complete KYC — which for Nigerian merchants includes business registration. An individual operating informally can sometimes use personal KYC for low-volume transactions, but business registration is strongly recommended for ongoing operations.

What is BVN and why does Paystack require it?

BVN (Bank Verification Number) is an 11-digit unique identifier issued by the CBN to every bank account holder in Nigeria. It links your biometric data to all your bank accounts. Paystack uses BVN to verify your identity as part of CBN-mandated KYC requirements for payment service users.

How long does Paystack KYC take in Nigeria?

Most KYC verifications complete within 1-3 business days after submitting all required documents. Complex cases (e.g., corporate accounts with multiple directors) may take longer. You can use test mode while waiting for live account approval.

Do I need a separate CBN license to accept payments in Nigeria?

No. Paystack holds the necessary CBN licenses (Payment Service Provider). As a merchant using Paystack, you operate under Paystack's license. You do not need your own PSP license unless you are building a payment product (as opposed to accepting payments for goods and services).

By Bonaventure Ogeto|Updated July 22, 2026

Paystack Onboarding and Compliance Requirements in Nigeria

To onboard with Paystack in Nigeria: (1) register your business with the CAC (Corporate Affairs Commission) — a Business Name (BN) or Limited Liability Company (RC) registration is acceptable; (2) provide your BVN (Bank Verification Number) for identity verification; (3) submit your Bank Statement or CAC certificate; (4) provide a valid Nigerian bank account for settlement; (5) complete Paystack's KYC (Know Your Customer) process which may include director ID verification.

Required Documents for Nigerian Paystack Merchants

Document	Purpose	Notes
CAC Certificate (BN or RC)	Business registration proof	BN7 or RC number for incorporated companies
BVN	Identity verification	Required for all Nigerian account holders
Valid government ID	Director/owner verification	NIN, passport, or driver's license
Nigerian bank account details	Settlement account	Account must match business name or owner's name
Business address	KYC requirement	Physical business address in Nigeria
Utility bill (optional)	Address verification	May be required for higher-limit tiers

Learn More

This guide is part of the Paystack by country guide.

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Key Takeaways

✓Business registration with CAC is required — either a Business Name (BN) or Limited Liability Company (RC/LTD).
✓BVN (Bank Verification Number) is required for identity verification — all Nigerian bank account holders have one.
✓Provide a Nigerian bank account for settlement — Paystack settles to a registered Nigerian bank account.
✓CBN (Central Bank of Nigeria) regulates payment service providers — Paystack holds a CBN license; merchants benefit from Paystack's compliance.
✓Transaction limits vary by verification tier: standard accounts have lower limits than fully verified merchants.
✓Personal accounts have lower transaction limits than registered business accounts — register your business first.

Frequently Asked Questions

Can I use Paystack in Nigeria without CAC registration?: Paystack allows you to start in test mode without full verification. For live payments, you will need to complete KYC — which for Nigerian merchants includes business registration. An individual operating informally can sometimes use personal KYC for low-volume transactions, but business registration is strongly recommended for ongoing operations.
What is BVN and why does Paystack require it?: BVN (Bank Verification Number) is an 11-digit unique identifier issued by the CBN to every bank account holder in Nigeria. It links your biometric data to all your bank accounts. Paystack uses BVN to verify your identity as part of CBN-mandated KYC requirements for payment service users.
How long does Paystack KYC take in Nigeria?: Most KYC verifications complete within 1-3 business days after submitting all required documents. Complex cases (e.g., corporate accounts with multiple directors) may take longer. You can use test mode while waiting for live account approval.
Do I need a separate CBN license to accept payments in Nigeria?: No. Paystack holds the necessary CBN licenses (Payment Service Provider). As a merchant using Paystack, you operate under Paystack's license. You do not need your own PSP license unless you are building a payment product (as opposed to accepting payments for goods and services).

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By Bonaventure Ogeto|Updated July 22, 2026

Paystack Onboarding and Compliance Requirements in Nigeria

Required Documents for Nigerian Paystack Merchants

Document	Purpose	Notes
CAC Certificate (BN or RC)	Business registration proof	BN7 or RC number for incorporated companies
BVN	Identity verification	Required for all Nigerian account holders
Valid government ID	Director/owner verification	NIN, passport, or driver's license
Nigerian bank account details	Settlement account	Account must match business name or owner's name
Business address	KYC requirement	Physical business address in Nigeria
Utility bill (optional)	Address verification	May be required for higher-limit tiers

Learn More

This guide is part of the Paystack by country guide.

Sign up for the McTaba newsletter

Key Takeaways

✓Business registration with CAC is required — either a Business Name (BN) or Limited Liability Company (RC/LTD).
✓BVN (Bank Verification Number) is required for identity verification — all Nigerian bank account holders have one.
✓Provide a Nigerian bank account for settlement — Paystack settles to a registered Nigerian bank account.
✓CBN (Central Bank of Nigeria) regulates payment service providers — Paystack holds a CBN license; merchants benefit from Paystack's compliance.
✓Transaction limits vary by verification tier: standard accounts have lower limits than fully verified merchants.
✓Personal accounts have lower transaction limits than registered business accounts — register your business first.

Frequently Asked Questions

Can I use Paystack in Nigeria without CAC registration?: Paystack allows you to start in test mode without full verification. For live payments, you will need to complete KYC — which for Nigerian merchants includes business registration. An individual operating informally can sometimes use personal KYC for low-volume transactions, but business registration is strongly recommended for ongoing operations.
What is BVN and why does Paystack require it?: BVN (Bank Verification Number) is an 11-digit unique identifier issued by the CBN to every bank account holder in Nigeria. It links your biometric data to all your bank accounts. Paystack uses BVN to verify your identity as part of CBN-mandated KYC requirements for payment service users.
How long does Paystack KYC take in Nigeria?: Most KYC verifications complete within 1-3 business days after submitting all required documents. Complex cases (e.g., corporate accounts with multiple directors) may take longer. You can use test mode while waiting for live account approval.
Do I need a separate CBN license to accept payments in Nigeria?: No. Paystack holds the necessary CBN licenses (Payment Service Provider). As a merchant using Paystack, you operate under Paystack's license. You do not need your own PSP license unless you are building a payment product (as opposed to accepting payments for goods and services).

Learn Paystack Integration

KES 2,999

The definitive guide to building payment systems with Paystack — from your first transaction to production-grade payment infrastructure across Africa. 9 modules, 47 lessons. Free preview available.

Start Paystack Course

Not ready? Create Free Account