How To Start POS Business In Nigeria 2022

A Pos Business in Nigeria is a very lucrative business, however, starting is usually the problem. But then we have written this article to guide you through the process of starting and succeeding.

Is POS business profitable in Nigeria?

Starting a POS firm may be successful and rewarding on average. Especially if you already own and operate another business with a physical presence. Because it lowers the amount of money required to establish this firm.

This is because an increasing number of consumers are visiting POS centers on a daily basis to conduct their financial transactions and avoid the stress that banks may create.

In Nigeria, the POS industry is especially successful since many distant areas lack bank branches, therefore POS agents have taken on the role of de facto banks. A POS agent or business also does not need to promote because they are in the public view, and customers would always seek them out for the convenience they bring.

POS agents have now established themselves as a viable alternative to visiting the bank, particularly for cash withdrawals and transfers.


Starting a POS business in Nigeria does not require a large amount of capital, and you can start generating money the day you open your doors. Just make sure you’re at a great spot. A POS agent in Nigeria can earn between N7,000 and N10,000 per day, depending on their location and how well they’ve earned confidence with their consumers, particularly those in their immediate vicinity.

In Nigeria, how can you generate money from a POS business? You profit from the commission you receive from each customer who uses your POS equipment. Let’s say a consumer requests a withdrawal of N5,000. You’ll charge N100 for the transaction and tell your POS provider about it. You can take N60 as a commission, while the company’s bank would take N40.

Advantages of POS business in Nigeria

  • It might be an additional source of revenue for small business owners.
  • People can save time and money by not having to go to the bank to perform cash transactions.
  • Encourages the country’s financial inclusion.
  • People don’t have to carry as much cash around, which makes them less vulnerable to theft. to robbery with a weapon
  • Merchant revenues increase because they can serve both cash and card-carrying clients.

Disadvantages of POS business in Nigeria

  • Robbery attempts are common:- Because to the nature of the company (cash transactions), it may attract thieves and criminals. Because you can’t afford to pay a security guard for this company. You’ll need to exercise extreme prudence and caution when moving and holding money.
  • Banking Networks can be a problem in this line of employment:- As a result, it’s critical that any POS agent service you choose has dependable network services. Some people use up to three distinct POS devices to fight this.
  • Because of the country’s inconsistent power supply, it’s critical to have your POS equipment charged at all times. It would not be a terrible idea to invest in a modest generator.
  • Lack of regulation in Agency banking: Due to the lucrative nature of the POS sector, many individuals are flocking to it, and the industry is devoid of regulation. Some POS stores are quite near to one another in some areas. The spacing of the stores is not governed by any rules. Furthermore, because there is no set fee for POS agents, fees may vary from one agent to the next.

What you Can do as a POS Agent

Below are some of the things you can do as a POS agent of any bank or company.

  • Open new bank accounts for customers
  • Deposit & Withdraw Money to and from any Bank
  • Send money
  • Make Bill payments like electricity, Cable TV, airtime and tax payments.
  • Enroll customers for BVN (Bank Verification Number)

Starting Cost of POS Business in Nigeria

Cost of POS Machine in Nigeria

List of POS Companies and Banks and Their Charges

Getting a POS Machine in Nigeria

Now that you know how much it costs to purchase a POS machine, there is a new question that we must answer. Where do you get a POS machine in Nigeria? As we have mentioned above, you can either purchase a POS machine from a bank or a fintech company. Some of the popular providers include:

  • Access Bank CLOSA agent
  • Bankly
  • Baxi Box
  • Ecobank Xpress point
  • Firstmonie POS
  • Kudi POS
  • Monie Point POS
  • OPay POS
  • Paga
  • Pay force
  • Quickteller Paypoint
  • Zenith Bank mobile money agent

There are other providers but based on our research, we believe that these are the best on the market currently.

How to Start a POS Business in Nigeria

Just like it is for every business, there are certain steps that you should take when starting the POS business in Nigeria. Check them out below:

Feasibility study and business plan

Before you begin this business, you need to first carry out a detailed feasibility study. Check your immediate environment for how much it will cost to start the business. Make inquiries from different service providers and speak to other operators of this business. Doing this gives you a clear indication of what to expect. With your findings, you can come up with a business plan for your business.

Choose a location

The location of your new business determines to a large extent whether you will succeed or not. We suggest that you choose a location that has a lot of human traffic. Also, ensure that your environment is safe and free of hoodlums. Ensure that your location isn’t close to ATMs or banks so that you can enjoy lots of patronages.

Raise capital

From your feasibility study, you should have an idea of how much you need to start this business. It is time to raise the funds to begin the business. You can raise capital through several methods including:

  • Personal savings
  • Bank loans
  • Loans from family members and friends

Submit your application

The application process to become a POS agent is slightly different from one provider to another. Find out what requirements you must satisfy from the provider you choose and submit your application. The process takes from between a few days to about a month. After doing this, you can start running your business.



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