How to Start a POS Business in Nigeria – A simple start-up guide

The Point-of-Sale (POS) business is gradually becoming one of the most lucrative or profitable business ventures any entrepreneur or business owner can think of in Nigeria. We all remember the ill-fated Central Bank of Nigeria (CBN) cashless and the new naira redesign policies that make the availability if naira to be scare and made many households to be at the mercies of many POS operators. They made huge money from this timeframe and if you are interested about starting this business, this article will guide you through.

How to Start a POS Business in Nigeria – A simple start-up guide

The point of sale (POS) or point of purchase (POP) is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, and may prepare an invoice for the customer to make payment.

What is a POS?

The point of sale (POS) or point of purchase (POP) is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculate the amount owed by the customer, indicates the amount, may prepare an invoice for customer (which may be a cash register printout), and indicates the option for the customer to make payment.

But in Nigeria, the term has been used to anyone who can offer financial services like transfer, withdrawal and deposit of funds.

Types of POS Machines

The mobile POS machine is the most popular version of the POS. However, there are other types like countertop POS and tablet PC-based POS machines. These types can be more expensive to acquire and are commonly used in big supermarkets.

The importance and value of the POS Business

With a POS Business, banks now reach a larger demographic. Also, they now offer more flexible and convenient access to existing and new customers.


It has significantly boosted financial inclusion and most operators make huge gains daily for the service they render to customers, especially in rural areas and where there is no presence of any financial institutions.

How does the POS Business work?

In a POS business, the client first request transactions like; withdrawal, transfer, or bill payment and present the debit card.

Next, the agent selects the type of transaction on the POS terminal device, enters the amounts, inserts the debit card into the machine, and ask the clients to enter the four-digit pin of the card for complete transactions to be effected.

How do POS Agents make money?

The business has provided job opportunities and financial stability by helping the agent make money through the following ways;

  • Commission
  • Service charges
  • Float

By starting and operating a POS Business, you are not only increasing your stream of income, but you are also serving the need so of the people in your area or community. And with a nice location that sees high volume of people passing by daily, you can be making as much as between N5,000 – N7000 daily.

How to start a POS Business and Become a POS Agent in Nigeria

The process of starting a POS business is now very easy and can be completed within 24hrs here in Nigeria. Nevertheless, you need the following items to push forward in this line of business;

  • Startup Capital: you must get at least a minimum capital of say N100,000 to get this business on the line. This will include the amount o purchase the POS machine and other logistics. You will have to push this capital upwards as time goes on as withdrawals from customers may increase as you advance and grow in the business.
  • Location: this is one of the most important things you must have in mind as this will determine how far the business and profit will go. A better location where people are much and with no closeness to any financial institutions will further be a boast to you and your business. Remote areas, student environments, markets and place where automated teller machines (ATM) are far are ideal locations.
  • Get a shop or Kiosk: This will serve as a meeting point and site for your business once the ideal location has been identify. Your shop or kiosk should be designed in such a way that it notifies people you are running a POS business.
  • Get the POS Machine: this is the most important part of starting this business. You need to find a good POS machine from the service providers and I will recommend some of the best which may include; moniepoint, numba (formerly kudi), palmpay and off course the wave of the moment Opay. These machine can be purchase lease or outright for fees as low as N30,000 – N45,000

According to the Central Bank of Nigeria (CBN), the requirements for starting a POS business include a valid means of identification and your Bank Verification Number (BVN).


A POS business is an additional way to get more income for most people here in Nigeria as of today. Aside from your other existing business, it is a way to expand service to people in the rural areas and make money for the service render.

The business needs to be located in a place far from any bank or financial institution. You will need to watch out for adequate security. You are sure to make more in this business if you follow the steps outline above.

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