Everything To Know Before Starting A POS Business In Nigeria

pos business

Want to open a POS business in Nigeria, then you are in the right place. This article provides a breakdown of how to start a POS business in Nigeria.

The Point-of-Sale (POS) business is one that is here to stay for a long time.

POS business officially took off in Nigeria in 2013 when the Central Bank of Nigeria (CBN) introduced the agent banking system.

Through its operations, POS has not only created a viable means of making money, but it has also helped cash transactions become easier and faster.

How does the POS business in Nigeria work?

A POS agent operates and processes transactions through a POS service provider. Providers of such services include banks, Microfinance banks, and Fintech companies.

The agent will provide many financial services that customers can make use of. This includes withdrawals, money transfers, airtime sales, and payment of utility bills e.g PHCN, DSTV, etc.

Amongst many other financial purposes, a POS device allows the agent to process transactions using the customer’s debit card. All the agent needs to do is choose the transaction type on the POS terminal and the amount.

The customer will insert his/her debit card and provide the four-digit PIN. The POS network will connect the ATM card to the bank’s server and process the transaction. If it’s successful a transaction receipt will be printed for the agent and customer.
However, a POS agent is not an employee of the bank but operates independently as a retail channel the bank provides. The agent maintains cash on hand for transactions that incur bank charges.

Which bank is best for a POS business in Nigeria?

Most commercial banks in Nigeria provide POS services to interested agents. Here are some of the banks preferred by most POS agents.

  • First bank
  • Wema Bank
  • Opay
  • Bankly POS
  • Monie Point POS
  • Kudi bank
  • GTbank
  • Paga
  • Zenith bank
  • Access bank
  • Quickteller
  • Ecobank
  • UBA
  • Interswitch

Steps on how to start a POS Business in Nigeria

1. Create a business plan

The importance of a business plan can never be over-emphasized. A business plan ensures you are on track by outlining your goals and objectives for the business. It also helps estimate the methods for attaining those goals and how much it would cost you to start your POS business in Nigeria.

2. Raise capital

After creating a business plan, Getting capital is the second step in starting a POS business. Good thing, you don’t need a large capital. To start a business like this, experts say the amount of money will range from N80-100,000 including money to get the POS machine. This will also cover expenses in getting other logistics needed to start the business.

3. Meet the official requirements

According to CBN, to start your POS business, there are some requirements you need to meet. Some of the documentation is as follows:

  • Valid means of identification, e.g., national ID card, driver’s license, international passport, or voter’s card.
  • Bank Verification Number (BVN)
  • Two (2) passport photographs
  • Two (2) current account references
  • Evidence of business registration (CAC Certificate)
  • Tax Identification Number (TIN)
  • Memorandum and Article of Association.
  • Credit Bureau Report
  • A minimum working capital of ₦50,000

4. Get a POS machine

Visit the bank of your choice to get the details of their requirement. By applying to become a POS agent, you can either get the POS machine leased, bought, or even for free. Different banks have different processes and forms that they require you to fill out before being given a POS machine.

Fill in the necessary documentation and wait for your application to be approved. Once your application is approved, you will receive the POS machine and you may begin offering your services to customers.

Here are a few things to consider before choosing your POS service provider.

  • Network or service
  • Cost of POS machine
  • Transaction charges

Some POS service providers charge 0.65% and ₦10 for any transaction below ₦10,000. Transactions above ₦10,000 will cost ₦50. However, some banks only charge ₦10 for any type of transaction.

So make sure you compare with other POS service providers before making your choice.

5. Get a good location

A strategic location will go a long way in ensuring you make money via your POS business on a daily basis. Areas, where there are markets, schools, residential areas, restaurants, event centres, malls, and heavy foot traffic, are great for a business like this.

You can decide to rent a shop and container. It should be designed in such a manner that it notifies people you’re running a POS business. You can achieve this with a small board or banner put in front of your shop to alert customers from a far distance who are looking for a POS terminal.


POS business in Nigeria is very profitable.

Once you have a good location with little to no competition, you can be making as much as ₦15,000-₦20,000 Naira on average, daily.

Related Articles

5 Best Sewing Machine To Buy In 2021

When shopping for a sewing machine, the crucial question to ask yourself is: What is most important to me when I sew? Machines come with lots of…

Join the conversation. Post a comment

Already have an account? Click here to login and post comment