How to Start POS Business in Nigeria

Today, almost every street in Nigeria, including rural areas, has a POS store where you can conduct various types of transactions. POS, or Point of Sales, has become a popular and profitable business in Nigeria.

How to Start POS Business in Nigeria

And, as with any new business venture, everyone wants to be a part of it. So, what should you know before launching a POS business in Nigeria?

In this article, we will show you how to choose a strategic location for your POS shop. As well as which financial institutions and commercial banks to work with to ensure you build a successful POS business.

How Does the POS Business Work?

The term POS companies refers to the industry that provides merchants with software and hardware solutions to help them manage their businesses while encouraging transactions. A POS company’s basic workflow is as follows:

  • Sales: POS vendors typically market their software and hardware solutions to merchants via sales teams or online marketing.
  • Installation: When a merchant decides to buy a POS system, the provider will come to the merchant’s location and install the hardware and software.
  • Training: The POS provider will instruct the merchant on how to operate the system, including how to process transactions, manage inventory, and generate reports.
  • Support: The POS provider will provide the merchant with ongoing technical support, including troubleshooting and software upgrades.
  • Fees: A monthly or annual fee is typically charged by the POS provider for the use of the software. As well as transaction fees for each sale processed through the system.

How to Become a POS Agent

To start a POS business is a simple process, you can completed it in two weeks to a month if you meet the host bank’s requirements.

Startup Money

Experts estimate that the cost of starting a business like this will be between N80,000 and N100,000, not including the cost of the POS machine. This will also cover the costs of acquiring other necessary business supplies.


This is one of the most important considerations you must have made when deciding to start this business. A strategic location is one with a large number of people who will need to perform simple

financial transactions. Remote areas, student environments, markets, and areas with few banks and automated teller machines (ATM) points can be ideal places to start a business.

Get a Shop or a Kiosk

This will serve as the people’s local or nearest financial institution, where they can perform simple transactions such as withdrawal, payment, bank transfer, and so on.

Your shop or kiosk should be designed in such a way that it alerts people that you run a POS business. You can accomplish this by placing a small board in front of your shop to alert customers who are looking for a POS terminal from a distance.

Official Requirements

The Central Bank of Nigeria has established some requirements for POS agents to meet before any financial institution will approve them.

You can learn more about the requirements by visiting the bank of your choice or contacting their customer service.

The CBN allows POS agents to work for different POS service providers, but the documents required for each provider may differ.

Here are some of these documents:

  • Valid means of identification like National ID Card, Voter’s ID Card, etc.
  • Passport photographs.
  • Bank Verification Number (BVN).
  • Current Account references.
  • Evidence of business registration (CAC Certificate).
  • Start-up funds/ capital minimum of NGN50,000.
  • Tax Identification Number (TIN).

When the bank approves your application, they will provide you with a POS machine. Either free or with a cautionary fee, so you can start your POS business.

Financial institutions that issues POS machines includes

First Bank, United Bank for Africa, Opay, Baxi Box, Moniepoint, Guaranty Trust Bank, Diamond Access Bank, Zenith Bank, Wema Bank, Keystone Bank, Fidelity Bank, Union Bank, Paga, Quickteller

How Do POS Agents Make their Money?

A POS agent’s daily earnings in Nigeria can vary depending on several factors such as good location. The number of customers served, fees charged, and commission rates paid by their principal.

POS businesses can generate daily returns ranging from 5,000 NGN to 20,000 NGN or more, but the location of the business is critical in achieving this.

POS agents make money by charging fees on every transaction made by customers, from cash withdrawals to airtime purchases. Furthermore, the POS service provider may pay the agent a commission.

When a customer completes a transaction, such as a 5,000 NGN withdrawal, the agent typically collects a charge fee of 100 NGN. The POS provider takes a percentage, with the remainder going to the agent’s wallet.

The customer’s payment of this charge fee makes up an important part of the POS agent’s income. In addition, the bank or POS provider pays the agent a daily or weekly commission based on the number of transactions they have completed with their service or wallet.

POS Companies Provides these following Services

The following are some of the services provided by POS companies:

  • Withdrawing money from a bank account.
  • Creating a bank account.
  • Money deposit.
  • Payment of bills such as electricity, cable television, airtime, and so on.
  • Transfer of funds.
  • Enrollment in the BVN.


Do you need a license to start a POS business in Nigeria?

To operate a POS business, you must obtain a license from the Central Bank of Nigeria (CBN). Furthermore, you should check with your local government authorities to see if any permits or licenses are required in your area.

What are the main requirements for establishing a POS business in Nigeria?

Registration of your business, obtaining the necessary licenses. Having a reliable source of electricity or a backup power supply. And also partnering with a registered financial institution or bank are all important requirements.

How can I collaborate with a bank on my POS venture?

To collaborate with a bank, contact a registered financial institution in Nigeria, such as a commercial bank.

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