How to Become a Licensed POS Aggregator in Nigeria

Last Updated: October 2025
Disclaimer: nigeriaussdcodes.com is an independent educational site. We are not a financial institution or a licensing body. This article is strictly for informational purposes. Always verify requirements directly with the Central Bank of Nigeria (CBN) and your chosen fintech partner.

From POS Agent to Aggregator

Many successful POS agents eventually dream bigger:
instead of operating a single terminal, they want to manage hundreds of agents, supply devices, and earn commission overrides.

That next step is called becoming a POS Aggregator — a business-to-business role where you connect new sub-agents to banks or fintechs, maintain their float, and earn from every transaction they process.

In this comprehensive 2025 update, you’ll learn:

• What a POS aggregator really does

• The current CBN requirements for registration

• Technical and financial criteria you must meet

• Step-by-step onboarding process with top providers

• Profit model, risks, and compliance best practices

What Exactly Is a POS Aggregator?

A POS Aggregator is an individual or company authorized to onboard multiple POS agents under its network on behalf of a licensed payment provider.
Think of it as a bridge between banks/fintechs and retail agents.

Core Responsibilities

• Recruit, vet, and train sub-agents

• Distribute POS terminals

• Provide first-level support and troubleshooting

• Manage settlement and float

• Monitor KYC compliance for each agent

The CBN Regulatory Framework

All POS aggregators operate under the CBN Guidelines for Agent Banking and Financial Services (2023 Revision) and the Payment Service Providers Framework.

Legal Classification

Aggregators fall under Super-Agents or Payment Service Provider Sub-Licenses.

To operate legally, you must either:

1. Obtain your own CBN Super-Agent License, or

2. Partner under a fintech that already holds a license (e.g., Moniepoint MFB, Opay MFB, PalmPay MMO, Nomba MFB).

Eligibility Requirements

Two Legal Paths to Aggregator Status

Path A — Direct CBN License

• Apply directly to CBN as a Super-Agent.

• Requires at least ₦50 million paid-up capital.

• You build your own network and interface with NIBSS.

• Must integrate payment switches and security modules (HSM, TLS Encryption).

Path B — Aggregator Partnership Model

• Partner under a licensed fintech (Moniepoint, Opay, PalmPay etc.).

• They provide platform access and terminal supply.

• You focus on agent recruitment and float management.

• Entry cost is lower (₦1 – ₦5 million setup).

Step-by-Step Process to Become a POS Aggregator

Step 1 — Register Your Business

Use the CAC Portal to register a company limited by shares (not just a business name).
Recommended objects:

“Provision of Financial Technology Services, Agent Banking, and POS Operations.”

Step 2 — Prepare Your KYC Portfolio

Include:

• Certificate of Incorporation

• Form CAC 2 & 7 (Particulars of Directors)

• Tax Clearance Certificate

• Utility Bill of Office

• BVN & NIN of Directors

• Company Bank Statement (6 months)

Step 3 — Choose Your Partner Fintech

Compare:

Step 4 — Sign Aggregator Agreement

Providers will send you a Memorandum of Understanding (MoU) covering:

• Commission split structure

• Terminal ownership rights

• Agent onboarding obligations

• Dispute resolution and termination terms

Read carefully — never sign without understanding float liability clauses.

Step 5 — Provide Minimum Float Deposit

Usually ₦1 – ₦5 million depending on provider.
This ensures liquidity for your agents.

Step 6 — Receive Aggregator Portal Access

You’ll be given:

• Web dashboard to create agent profiles

• Transaction monitoring tools

• Bulk settlement and analytics modules

Step 7 — Train Your Agents

Educate them on transaction limits, charge policies, and fraud prevention.
Many fintechs require proof of training attendance.

How Aggregators Earn Money

Aggregators make money in three ways:

1. Commission Override: a percentage from each agent’s transaction fee (₦5 – ₦20 per transaction).

2. Device Leasing/Sales: profit margin when you distribute POS terminals.

3. Value-Added Services: airtime sales, insurance, micro-loans, bill payments.

Example:
If you manage 100 active agents and each processes ₦300 000 daily with ₦100 charges, you earn:

₦100 × 100 agents × 30 days × ₦10 override = ₦3 million monthly gross.

Commission and Settlement Structure

Technical Requirements

To be taken seriously as an aggregator, you must provide:

• Reliable internet connectivity

• Secure merchant dashboard (for sub-agents)

• API integration (optional for bulk transactions)

• Device inventory management system

• 24/7 support contact (for agents)

• Complaint tracking logs

Providers audit these before activation.

Common Challenges and How to Solve Them

Regulatory Compliance Checklist

Register as a legal entity with CAC.
Obtain Tax Identification Number.
Maintain business bank account.
Conduct KYC for every agent.
Submit periodic transaction reports to provider.
Follow CBN cash-limit and anti-fraud rules.
Display customer fee notice at each agent location.

Risk Management for Aggregators

• Segregate funds: Keep float separate from personal income.

• Use insurance: Consider micro-insurance for cash in transit.

• Monitor transactions: Flag unusual high-value patterns.

• Educate agents: on fake alerts, SIM swap fraud, and phishing.

• Backup data: Use cloud storage for records.

Scaling Your Network

1. Recruit through referrals and training events.

2. Offer loyalty bonuses for active agents.

3. Expand into rural areas underserved by banks.

4. Partner with schools or co-operatives for float distribution.

5. Develop a mobile app for your agent network.

Real-World Examples

Case 1 — Chinedu (Abuja):
Started as an Opay agent in 2021; by 2024 became aggregator with 120 active agents. Average monthly profit ≈ ₦2.8 million.

Case 2 — Zainab (Kano):
Partnered with Moniepoint for rural women banking project; built network of 80 agents across six LGAs.

Case 3 — Adeola (Lagos):
Tech-savvy entrepreneur built own web portal and API for Nomba agents. Now earns transaction override plus advert revenue on dashboard.

Common Mistakes to Avoid

Rushing into aggregator agreements without reading MoU.
Using unverified agents to handle float.
Ignoring KYC renewals.
Overcharging beyond CBN limits.
Operating without business records or audit trail.

Future of POS Aggregation in Nigeria

CBN’s 2025 fintech roadmap is pushing for:

• Unified agent database across banks.

• Mandatory biometric identification for agents.

• Integration of POS services with national payment gateway for instant settlements.

Aggregators who embrace compliance and technology will remain profitable; those who ignore audits may be phased out.

Frequently Asked Questions (FAQs)

Q1: Can I be an aggregator without CBN license?
Yes, through a licensed fintech partnership.

Q2: How much capital do I need to start?
₦2 – ₦5 million (minimum) for the partnership model.

Q3: How long does approval take?
Usually 2 – 4 weeks after document submission.

Q4: Can I have agents across multiple states?
Yes, with provider authorization and registered field supervisors.

Q5: Do aggregators pay taxes?
Yes — Company Income Tax (CIT) and withholding on commissions.

Conclusion

Becoming a licensed POS aggregator is not just about earning more money — it’s about building a regulated, sustainable financial network.

Follow CBN guidelines, choose partners wisely, train your agents, and prioritize transparency.
As Nigeria moves toward cash-lite banking, aggregators will play a vital role in connecting the unbanked population to digital finance.

Start small, grow smart, and your network could become the next big fintech story out of Nigeria.