How to Start a POS Business in Nigeria

Last Updated: October 2025
Disclaimer: nigeriaussdcodes.com is an independent educational resource. We do not provide POS terminals or financial licensing services. This article is purely for information purposes. Always confirm latest business requirements directly from your chosen provider and the Central Bank of Nigeria (CBN).

Why POS Is Still One of Nigeria’s Most Profitable Small Businesses

Even in 2025, Point-of-Sale (POS) services remain one of Nigeria’s fastest-growing small-business opportunities. In both rural and urban areas, people rely on POS agents to withdraw cash, transfer funds, and pay bills.

Since 2020, cash scarcity, network issues, and long queues in banks have made POS kiosks the easiest way to access financial services. According to the Nigerian Inter-Bank Settlement System (NIBSS), there are now over 2.5 million POS terminals nationwide, with daily transactions exceeding ₦900 billion.

Starting a POS business today is still lucrative — but success depends on choosing the right provider, understanding CBN rules, and managing risks like fraud and reversals.

This guide covers everything you need to launch confidently — from registration to profit tips.

Understanding How POS Business Works

A POS business allows agents to offer mini-banking services to customers through POS terminals.
These terminals connect to the payment switch (Interswitch / NIBSS) to process withdrawals, transfers, and bill payments in real time.

Core Services You’ll Offer

• Cash withdrawals

• Money transfers

• Airtime and data sales

• Utility bill payments

• Account balance checks

• Cardless withdrawals (PayCode)

Each transaction earns the agent a small commission or convenience fee (usually ₦50–₦300 per transaction).

Legal Requirements and CBN Licensing Framework

CBN Policy

The Central Bank of Nigeria regulates POS operators under its Agent Banking Guidelines.
You must either:

• Partner with a licensed financial institution or fintech, or

• Operate as an aggregator/merchant under their supervision.

Basic Requirements

• Must be 18 years or older.

• Have a valid ID (NIN, voter’s card, or international passport).

• Own a registered business name (CAC preferred).

• Have a valid BVN.

• Possess a functional bank account.

What the Law Says

• You cannot charge beyond CBN’s approved limits.

• Agents must display transaction fees clearly.

• Every terminal must be traceable to its aggregator.

Tip: Always obtain a written agreement from your POS provider before operating.

Choosing the Right POS Provider

With over 20 fintechs offering terminals, the main challenge is picking a stable and trusted network.

Top Licesed Providers

Expert Tip: Choose based on your environment — Opay and Moniepoint dominate cities; FirstMonie works best in rural communities.

Capital Needed to Start a POS Business

Startup Cost Breakdown

Total: ₦170 000 – ₦500 000 (depending on scale).

Float Explained

Your float is the money in your agent account used for customer transactions.
The higher your float, the more customers you can serve daily.

Step-by-Step Process to Start a POS Business

Step 1 — Register a Business Name

Use the Corporate Affairs Commission (CAC) online portal.
Registration cost: ₦10 000 – ₦15 000.
Business name examples: SwiftCash Ventures, AyoPay Services.

Step 2 — Choose a Reliable POS Provider

Compare providers’ features:

• Transaction success rate

• Settlement speed

• Network uptime

• Support response

• Agent commission structure

Step 3 — Apply for a POS Terminal

Each provider has its own onboarding process.
Example (Opay):

1. Download Opay Business App.

2. Register → Upload ID + utility bill.

3. Complete KYC.

4. Request device (lease or buy).

Verification Time: 24 – 72 hours.

Step 4 — Fund Your Float

Deposit cash into your wallet through transfer or bank deposit.
Maintain at least ₦100 000 active float daily.

Step 5 — Set Up Your Shop

• Locate a busy junction, bus stop, or market gate.

• Provide shading (umbrella or kiosk).

• Display clear signage “POS Available Here.”

• Keep a chair, receipt book, and record log.

Step 6 — Start Transactions

Perform sample transactions for practice.
Always test withdrawal and transfer before serving customers publicly.

Profit and Commission Structure

Typical Earnings

Average Daily Profit: ₦3 000 – ₦8 000
Monthly: ₦90 000 – ₦240 000

Your income depends on transaction volume, location, and reliability.

How to Attract More Customers

• Locate near markets or motor parks.

• Stay open late (7 am – 9 pm).

• Offer small discounts to loyal users.

• Be polite and professional.

• Always provide receipt — it builds trust.

• Display “Network Available” board.

Managing Common POS Business Risks

Fraudulent Customers

Some customers present fake alerts or screenshots.
Solution: Verify every transaction on your dashboard before handing out cash.

Fake Reversal Claims

Always match RRN reference before refunding.

Theft or Armed Robbery

Operate in well-lit areas; consider CCTV or security doors.
Avoid keeping excess cash overnight.

Device Failure

Keep backup power bank and SIMs. Update software weekly.

Record Keeping and Financial Discipline

Maintain a simple notebook or Excel sheet with:

• Date

• Transaction type

• Amount

• Customer name (optional)

• Reference number

• Profit

Regular bookkeeping helps detect fraud and monitor growth.

Expanding Beyond One POS Terminal

Once you master one terminal, scale by:

• Adding more devices in new locations.

• Hiring trusted attendants.

• Registering as sub-agent or aggregator.

• Offering extra services (insurance, recharge cards, cable payments).

Growth potential is massive — many agents now earn over ₦500 000 monthly through network expansion.

Real-Life Success Examples

Case 1 – Fatima (Kaduna): Started with ₦200 000 float. After one year and two extra terminals, she earns about ₦320 000 monthly profit.

Case 2 – Emeka (Enugu): Began under Opay with a used kiosk; invested in Moniepoint for reliability. Now handles ₦3 million turnover weekly.

Case 3 – Aisha (Lagos Island): Runs six PalmPay terminals with staff; uses record app to track daily profits.

Frequently Asked Questions (FAQs)

Q1: How long does POS approval take?
Usually 24 – 72 hours once KYC is complete.

Q2: Can I use one BVN for multiple POS accounts?
Yes, but each must be under same business registration.

Q3: Which network is best for POS?
MTN and Airtel generally offer the most stable connections.

Q4: Is POS business still profitable in 2025?
Yes. Despite competition, demand for cash services remains high.

Q5: Do I need a shop?
Not mandatory, but visibility improves trust and security.

Summary Table — Quick POS Startup Checklist

Advanced Tips for 2025 Agents

• Enable PayCode / cardless withdrawal for tech-savvy clients.

• Offer bulk transfer for market traders.

• Join provider’s agent WhatsApp or Telegram channel for updates.

• Learn basic POS troubleshooting (battery, paper, network).

• Avoid borrowing float from unverified sources.

Common Mistakes New Agents Should Avoid

• Running POS without proper KYC → leads to account suspension.

• Using personal account for business transactions.

• Ignoring small network fees that accumulate over time.

• Refunding customers based only on verbal claims.

• Overcharging customers beyond CBN limit (risk of penalties).

Growth Opportunities — From POS to Micro-Entrepreneur

Modern POS businesses are evolving into micro-banks.
You can now:

• Offer small loans.

• Sell insurance packages.

• Become a merchant collection point for e-commerce.

• Assist with BVN/NIN registrations.

By diversifying services, you transform from a street POS operator into a community financial hub.

Conclusion

Starting a POS business in Nigeria doesn’t require millions, but it needs patience, honesty, and consistency.

Success isn’t about who starts first; it’s about who builds trust fastest.
Provide reliable service, keep your float steady, and handle customer issues with empathy.

As cash flow challenges continue nationwide, POS agents remain the lifeline of Nigeria’s informal economy.
With the right strategy, your small kiosk today could become a nationwide network tomorrow.