You are well aware of an emerging POS system in Nigeria, even if you don’t know it yet. – pos business in Nigeria

Sounds contradictory right? Well, don’t be confused.

As you move around in your daily activities, you must have come across one or two stalls where a person is seated with a POS machine in front of him/her.

Familiar right? Yes, and in fact, some of you must have used their services for when an ATM isn’t readily or conveniently available.

It’s all common knowledge now, but I’m here to reveal to you the extent and potential of the POS business in Nigeria as we speak.

In short, it is a gradually booming business, and I’ll tell you just how you can get started yourself, if you fancy making money without much stress.

POS system in Nigeria

For those who don’t know what POS business is, I’ll slow down a bit and tell you what it entails.

POS business is also known as Agent Banking Business in Nigeria, and it involves the withdrawal and transfer of Bank funds.

It also involves the payment of utility bills such as electricity and Cable TV.

So, basically, a POS business is an extension of the financial services you would enjoy from a bank,

and what you would pay for that service extension is known as “Convenience fee

You would then agree with me, that a financial service extension is suitable for places that readily have access to the said financial service.

POS business is really an entrepreneurial business, as people who have an ever-present financial need have those needs met in the face of scarce availability of banks.

So, people can get their money when they need it, even when there are no banks around;

and that’s thanks to the POS business.

If you’ve got the adventurous spirit of an entrepreneur,

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this business model is quite hard to pass up, and I’m currently

here to explain how you can get started on a POS business in Nigeria with this post.

How to start POS business in Nigeria

Given that the POS business is an independent extension of banks,

you would need to be recognised by a bank or any related financial institution.

To start, you need to find a Host; that host will be the

financial institution that would be the source of the financial services you would be extending to people.

Examples of good hosts you can use include Paga, QuickTeller, First and Second Generation banks. 

In fact, let me tell you bit about some of these hosts;


is a payment processing platform that’s very popular;

they are basically there for when you need to transfer funds through your phone.

With the platform, you can send and receive funds from anywhere in the world.

It works readily with international payment platforms like MoneyGram, Western Union, MoneyGlobe, and the others.

With all of these, and the huge customer base and reach here in Nigeria,

I’m telling you that Paga is definitely one of the best payment platforms you need for your POS business when you wish to start.

To affiliate your POS business to Paga, you would need to become a Paga agent.

All it takes is to register on their official website, and go through the procedures to become an accredited agent.


is another solid Payment platform from the stable of First Bank of Nigeria.

The idea behind FirstMonie is for First Bank to have “Human ATMs”

whereby people don’t have to reach the bank counter before completing their transactions.

Your POS business could really do with FirstMonie, and being an Agent gives you the recognition.

Get a Location For Your POS Business

Like every other businesses out there, you would definitely need a location,

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and like I’ve said earlier, POS business in Nigeria is an entrepreneurial venture,

Meaning you’ve got to find an area which really needs this kind of service.

Areas where bank branches are few, or there are not enough ATMs would be perfect.

Because you would be solving the financial problems of people around that location.

Also, pay attention to the space you want to operate from; make it spacious, yet not too elaborate.

Get your POS Machine

Of course, there is no POS business if there’s no POS machine.

I would be explaining how to get a POS machine, because it really does have some procedures.

First off, you need to know that a POS machine costs between N80,000 and N100,000,

and you can either buy it outright, or acquire it for free from a bank.

If you’re looking to get it for free from a bank, you would have meet their set requirements;

these include you making that bank your Host bank, and having an account with them.

The account usually has to be a current account, although some banks would only have you open a savings account.

To know which one of them would cut it for your bank, you should contact the bank’s customer support, or your account officer (if you already have one)

To then proceed with the acquisition of the POS machine form your bank,

you would need to fill some documents, which is usually collected form your account officer.

Some other banks give you the chance to download the document online,

but either way you choose to get the documents, just fill it up with the required details, and submit back to the bank.

Upon submission, it typically takes a few days to get approval and have the POS machine delivered to you.

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Now, while in technical terms you would be getting the POS machine for free,

you would actually be charged a certain amount per transaction:

normally pegged at around 0.25% with a cap, it could also be a definite amount (around N1,200)

At this point, your POS business is up and running, ready for the influx of customers.

Get word out there about your business

You’d really want more people to get to know of what you do, right?

You would need to do a bit of advertisement, to create that awareness amongst the people.

Advertising a POS business doesn’t require anything elaborate;

you just want to let the people around you know your business is out there for when the bank or ATM isn’t around.

All it mostly takes, is word of mouth, and then some light banner printing and design.

However, if you wish to cover an entire community or two, you’d need to do a little bit more.

Even then, you would just utilise the power of Digital Marketing, and reach out to as many people as possible, through social media and other digital means.

Also, while in the process of advertising what you do, ensure to give your business that uniqueness; it would come in handy for when competition shows up.

Conclusion on POS Business in Nigeria

In Nigeria, there are a lot of rural and suburban areas whose access to financial institutions are quite limited.

In that case, financial extensions such as the POS Business would really a boom in those areas,

and it takes minimal effort to satisfy those financial needs while getting returns at the same time.

I have given what I consider the ultimate guide on how to start POS business in Nigeria,

so that you get the idea of just how promising and lucrative POS business is and how you can start today.



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