An ingrown toenail can also cause paronychia. Humidity allows certain germs, such as candida (a type of fungus) and bacteria, to grow. Paronychia is an inflammation of the nail that can result from trauma, irritation, or infection. Paronychia can develop when bacteria enter the damaged skin near the cuticle and nail fold, causing an infection. The cuticle is the skin located at the base of the nail. The nail fold is where the skin and the nail come together.