How To Start A POS Business In Nigeria In 2023 – Top Secret

These guides provide you with top secret on how to start a Pos business in Nigeria.


Nigerians have found the POS business to be one of the hottest to start for the average Nigerian.

With the ease and convenience it provides consumers, POS businesses are taking over ATMs.

Mobile money agents or POS businesses make money available through a POS machine in exchange for commissions or fees.


Since Nigeria has a shortage of Automated Teller Machines (ATMs) and people face long queues when using an ATM, you can now conveniently find someone running a point of sale business everywhere you go.

Our guide will provide a comprehensive overview of the POS business in Nigeria, including the common challenges and disadvantages, the cost of setting up a business in Nigeria, and the potential profits and rewards.

You can and should check out the POS machine and join the Agent networks if it is a worthwhile endeavor.

What Is POS Business In Nigeria?


A POS (point of sale) machine was created to make businesses, merchants and retailers collect payment for goods or services without the need for cash.

But since then POS machines or terminals are now being used by banks in Nigeria and fintechs (financial technology companies) to improve financial inclusion by bringing financial services to the unbanked and underbanked population in Nigeria.

POS Business

Is POS Business Profitable In Nigeria?

In Nigeria, POS business is extremely profitable, partly due to the lack of access to banks in rural areas and remote settlements.

Once you have a good location and have built trust with the locals, you can be making as much as ₦7,000-₦10,000 Naira on average, daily.

This figure comes from the commission that is gotten from every customer that uses the POS machine.

A percentage also goes to your POS provider while you keep the rest as commission.

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Cost Of Starting A POS Business In Nigeria?

Interested in starting a POS business in Nigeria but unsure about the cost? As a matter of fact, there isn’t a specific starting cost.

Your starting cost will depend on the size at which you want to run the business.

The main capital you will need for the business is the costs for the machine and the funds you will disburse to clients, which should range between N50,000 and N250,000.

Entrepreneurs can qualify for a free POS machine from certain fintech companies, but they have specific requirements.

How Much Is A POS Machine In Nigeria / Cost Of POS Machine In Nigeria?

The prices can range from ₦45,000 to ₦65,000 to ₦75,000 and can get as high as ₦200,000 depending on the specifications of the POS machine.

The cost of a POS machine in Nigeria depends on the bank or company you want to be an agent of or you’re buying from. There is no fixed price for POS terminals in Nigeria.

Different POS terminals have different specs like 2G, 3G and 4G as well as other types of features.

POS Business

List Of POS Charges In Nigeria

You can become a POS agent with the following companies and banks, please note that these charges are not necessarily what you see when you visit your preferred mobile money agent service.

1. Baxi Box POS Charges

0.65% Flat For Withdrawals

₦30 Flat For Transfer – No Stamp Duties

2. Paycentre POS Charges

Withdrawals: (0 to ₦10,000) = 0.55%, (N10,001 to ₦15,000) = N65, (₦15,001 to ₦20,000) = ₦75, (₦20,000 Above) = ₦80.

For transfers: (0 – ₦5,000) = ₦10.5, (₦5,001-₦50,000) = ₦26.25 , (₦50,000 and above)=₦50.00

3. Payforce POS Charges

Deposit: ₦25

Withdrawals: (0- ₦5000) = N30, (₦5,001- ₦16,500) = 0.6%, (₦16,501- ₦100,000) = N110, (₦100,001 and above) = 0.11%

4. Kudi POS Charges

Withdrawal: (below ₦4500) = ₦25, (₦4,501- ₦25k): = 0.6%, (Above ₦25k) = ₦150

Transfer: ₦45

5. Moniepoint POS Charges

Withdrawal: 0.5% (₦1000 – ₦19900), 100 Naira Flat for (₦20K – ₦1,000, 000)

Deposit: ₦12 Naira

Where To Get POS Machines?

You can get POS machines only from banks and other financial institutions in Nigeria.

Some of the popular banks and financial institutions to get a POS machine from in Nigeria are; GTBank. First Bank, Access Bank, UBA, Zenith Bank, OPAy, Baxi, Monie point, Kudi and Bankly.

Which POS Agent Is The Best In Nigeria?

If you wish to become a POS Agent in Nigeria, some of the best companies to consider based on cost and commission rates are as follow:

  1. OPay POS
  2. Bankly
  3. Monie Point POS
  4. Firstmonie POS
  5. Kudi POS
  6. GTB POS
  7. Pay force
  8. Paga
  9. Zenith Bank mobile money agent
  10. Access Bank CLOSA agent
  11. Quickteller Paypoint
  12. Ecobank Xpress point
  13. Baxi Box
  14. UBA POS

Top 6 Steps On How To Start A POS Business Or Become A POS Agent In Nigeria

1. Create A 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.

2. Determine The Cost Of Starting A POS business

The cost of starting a POS business in Nigeria can be diferrent from person to person. Because of the different locations people stay in.

The amount to rent a shop or space to start this business in Lagos will be different for in a place like Maiduguri.

You’ll also need to know which bank of company you’re going to sign up to for you to become a POS agent.

3. Raise Capital

As earlier mentioned, the capital required for the business is low.

You also do not have to worry about extravagant furniture fittings for your shop.

A humble store with a clear sign advertising your services works well.

4. Get A Good Location

Since this will be a physical business that will require lots of leg traffic it’s important to to get a very suitable.

A suitable location will be a place that is densely populated. It should be a place where a lot of people stay in and where there isnt easy acess to banks or lots of ATMs.

5. Fulfil The Official Requirements

Financial services are a sensitive area of life to deal with and this is why the Central Bank of Nigeria has taken several precautions to ensure the integrity of those who will qualify to be agents.

One of such requirements is that you must have an existing business of any type (in operation for at least 12 months) and have a shop or office from which you operate.

6. Approach A Bank And Apply For The POS Machine

Decide on the bank of your choice and approach them 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.

The official CBN guide allows you to be an agent for as many banks as you desire. Fill in the necessary documentation and wait for your application to be approved.

POS Business

Benefits Of POS Business In Nigeria

1. Source Of Income

POS Business can be another good stream of income for small business owners.

2. Ease & Convenience

POS Business provides ease and convenience for people as they don’t have to go to the bank to make cash transactions.

3. Promotes Financial Inclusion In The Country

4. Theft Reduction

POS Business reduces exposure to theft, as people don’t have to carry so much cash around, in this case, it reduces armed robbery.

5. Sales Increase

POS Business increase in sales for Merchant as they can cater to both cash and card-carrying customers.

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Disadvantages Of POS Business In Nigeria

1. Robbery Attacks

POS Business can prompt Robbery because of the nature of this business (deals with cash) it can attract robbers and criminals to the enterprise.

Since you cannot hire a security guard for this business. You’ll need to be very security cautious and take precautions with how you move and hold money.

2. Network Failure

In this business, you can encounter issues with Banking Networks.

So it is important that whatever POS agent service you decide to work with, must have reliable network services.

Some people combat this by having up to three different POS machines.

3. Lack Of Regulation In Agency Banking

In spite of the lucrativeness of the POS business, a lot of people are pouring into it and there’s a lack of regulation in this industry.

In some places, some POS shops are so close to each other. There is no regulation that guides the spacing of the shops.

And there is no fixed charge for POS agents per se, so charges can differ from agent to agent.

Wrapping Up On How To Start A POS Business In Nigeria

A POS business is an additional way of getting income.

Aside from your existing business, it is a way to expand service offerings and one of the best methods to cross-sell your products/services to walk-in customers.

The business needs to be situated in places with no bank branches or busy environments with enough security measures in place.

You are sure to increase your daily revenue if you get everything right.


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