How to Do PoS Business in Nigeria 2025
The PoS business in Nigeria has grown so fast and is still a profitable business in 2025. As cashless transactions and digital banking continues to grow, PoS services is a financial solution to the underserved communities, bridging the gap between customers and banks.
This article will guide you on how to do PoS business in Nigeria 2025 with practical tips and insights to make you successful.
What is PoS Business?
A PoS (Point of Sale) business is all about providing financial services such as withdrawals, deposits, transfers, bill payments and airtime purchases using a PoS terminal. These services are offered by small scale entrepreneurs known as PoS agents in areas where banks or ATMs are scarce or crowded.
The major attraction of this business is convenience, customers can access banking services without visiting a bank branch. That’s why PoS is an important part of Nigeria’s financial landscape.
Why Do PoS Business in Nigeria?
1. High Demand: Many Nigerians prefer PoS operators for quick and easy financial services.
2. Low Start Up Cost: Setting up a PoS business is cheaper than other businesses.
3. Recurring Income: Agents earn commission for every transaction
4. Growing Market: With Nigeria’s financial inclusion drive, PoS business is a growing industry.
5. Flexibility: Can be done alongside other businesses like retail stores or kiosks.
How to Do PoS Business in Nigeria
1. PoS Business Model
Before you start, understand how this business works. Research the services you can offer, the cost and the profit. Common PoS services are:
- Cash withdrawals
- Deposits and transfers
- Bill payments (electricity, water, cable TV)
- Airtime and data purchases
Understanding the business will help you know the way to go and avoid costly mistakes.
2. Get Capital
Starting a PoS business requires an initial investment. The cost depends on location, equipment and partnership with financial institutions. Here’s the breakdown of the expenses:
- PoS Terminal: ₦20,000 to ₦50,000 depending on the provider.
- Cash Float: ₦50,000 to ₦100,000 to facilitate transactions.
- Setup Costs: Rent a small space (if needed) and buy furniture or signage.
3. Register with a Bank or Financial Institution
To become a PoS agent, you need to register with a bank or financial service provider. Here’s the process:
1. Go to the Bank: Visit a bank or licensed agent aggregator like First Bank, Access Bank, or Moniepoint.
2. Provide Required Documents: This may include:
- ID (National ID, Voter’s Card, or Driver’s License)
- Bank Verfocation Number (BVN)
- Recent passport photographs
- Proof of address
3. Fill the Application: Fill the agent application form.
Once approved, you will get the PoS terminal and training on how to use it.
4. Choose a Good Location
Your business success depends largely on its location. Choose a spot with high foot traffic and limited access to banking facilities. Good locations are:
- Rural areas
- Busy markets
- Residential areas with few ATMs
- University campuses
5. Set up your PoS Business
Once you have your location, set up a small kiosk, shop or stand. Make sure it’s visible and accessible to customers. Display a signboard showing the services you offer, “Withdrawals”, “Deposits” and “Bill Payments”.
6. Offer Good Pricing
Customers are attracted to PoS operators with fair and transparent pricing. Research the standard charges in your area and set your fees competitively. Here are the typical charges:
- ₦100 to ₦300 for withdrawals depending on the amount.
- ₦50 to ₦100 for deposits and transfers.
7. Build Trust with Customer
In PoS business, trust is key. Make sure your services are reliable and you handle customer’s funds with care. Here are the key practices:
- Give receipts for every transaction.
- Having enough cash float to meet customer’s demands.
- Being professional and courteous.
8. Market your Business
Promote your PoS business to get customers. Use:
- Word of mouth
- Flyers or posters
- Social media
- Signage at your business locationg
Challenges of PoS Business in Nigeria
PoS business is profitable but has its challenges:
- 1. Network Issues: Transactions can be disrupted by poor network.
- 2. Security Risks: Carrying large amount of cash makes PoS operators a target for theft.
- 3. High Competition: In busy areas, competition among agents can reduce profit margin.
- 4. Fraud: Be careful not to fall victim of fraudulent transactions or fake money.
Tips for Success in PoS Business
1. Stay Informed: Keep up with banking regulations and PoS policies.
2. Add Services: Offer bill payment or airtime sales to attract more customers.
3. Keep Good Relationship: Build trust with your customers for repeat business.
4. Invest in Security: Use CCTV, safes or hire security personnel to secure your business.
FAQs
How much does it cost to start a PoS business in Nigeria?
It cost ₦100,000 to ₦200,000 for equipment, cash float and setup.
First Bank, Access Bank, UBA, Zenith Bank and GTBank are major banks that offer PoS services. You can also partner with licensed agent aggregators like OPay or Moniepoint.
What are the requirements to become a PoS agent?
ID, BVN, recent utility bill, passport photographs and business bank account.
How do PoS agents make money?
Agents earn commission from transaction fee charged to customers.
Can I run PoS business with other business?
Yes, many operators run PoS services with retail shops, kiosks or cybercafés.
Summary
PoS business is still a good business in Nigeria 2025. By knowing how to do PoS business, choosing the right location and good customer service, you can succeed. Follow the guide to PoS business in Nigeria above and you will be on your way to steady income and financial inclusion in the country.
Comment below if you have any question or thought about this post.