Steps on how To Start POS Business In Nigeria

Last Updated on July 17, 2023 by admin

As Nigeria’s unemployment rate continues to increase, there are more concerns on how to reduce it, create more job opportunities by the government so as to eradicate the poverty level in the country.

According to National Bureau of Statistics in the second quarter of 2020, unemployment has increased to 27.1 per cent from the 23.1 per cent recorded in Q3 2018 meaning 21,764,614 (21.7 million) Nigerians are unemployed.In today’s discussion, we are going to talk about how to start up a Point of Sale (POS) Business in Nigeria.

POS business is also profitable in Nigeria because a lot of remote places have no bank branches, so POS agents have become the de-facto banks.

And a POS agent or business doesn’t have to do any marketing as they’re in the public eye and customers will always come to them for the ease they provide.

On average a POS agent in Nigeria can make N7,000 to N10,000 daily depending on their location and how they’ve built trust with their customers especially those around them.


What is Point of Sale (POS)

This is the place where customers make a payment for products or services at your store. POS terminal is the electronic equipment performing the sales transaction and processing the credit/Debit card payments.

POS business is a lucrative way to make money in Nigeria since the demand for cash and most ATM machines don’t often have cash on them.


What can you do with POS

POS (Point of Sale) business offers services like funds transfer and withdrawal, sales of airtime, bill payments like GOTV, DSTV, Startimes, PHCN, and other utility bills. It is used in several places where goods and services are sold/rendered; places like retail shops, offices, supermarkets, fuel/gas stations, pharmacies, eateries.

Also read: Keystone Bank Mobile transfer Code *7111#: How to transfer money

Steps to start up POS Business

1. Register your company

Most legit business in Nigeria need to register their business either as

Limited Liability Company
Sole Proprietorship
Cooperative Societies
Public Entities
Trusts or any other entity aside faith-based or NGOs.

To be eligible for a POS machine or to be an agent, you must have an existing business. This business must have been in existence for at least 12 months. Asides from this, you must have a shop or place of business. Also, you must have registered with the Corporate Affairs Commission as any of the following:


2. Get a shop/office placeI will advise you to choose a location with limited banks or places with few ATMs if possible. Rent a space in a bus stop, public market, university and college campus, event centers, rural area and residential place

.3. Apply for POS MachineVisit your bank to inquiry the requirements, in most case you should have Business Current AccountAlso you can approach Agency Bank like Monipoint, Baxi, PAYPAD, PAYSWIFF,ZIROOPAY,PAYONE and other angecy.

You can also read: Union Bank Transfer code *826#: how to register, transfer money, Buy recharge card and Cardless withrawals


How do you get Start Up fund

You will need capital for office equipment, cash at hand for disbursement this help kick up operation. So at least you need 100,000 to 200,000 Naira in ost case you might need up to 1million naira if you want to add bulk recharge sales to your business.



Since this will be a physical business that will require lots of leg customers  it’s important to get very suitable location . A suitable location will be a place that is densely populated. It should be a place where a lot of people stay and where there isn’t easy acess to banks or ATMs


Apply to become a POS Agent.

Depending on the bank or financial institution, applying to become a POS agent or for a POS machine might be an outright purchase, lease or even for free.

Determine which of them is suitable for you based on their requirements, commissions and charges.


How do you make a profit?

Commission: Banks and pay agents give commission based on the volume of transactions carried out on their behalf.

Service Charges: By rendering service to customers, you can also charge them a particular amount especially on bills payments, taxes, and subscriptions.

Float: You can also make use of cash deposits, net of withdrawal for your primary business.Depending on your cash management policy.


Benefits of POS business in Nigeria

The benefits of POS business in Nigeria to both the business owner and customers are:
– It can be another good stream of income for small business owners.
– Provides ease and convenience for people as they don’t have to go to the bank to make cash transactions.
– It promotes financial inclusion in the country.
– It reduces exposure to theft, as people don’t have to carry so much cash around.
– It increases sales for merchants as they can cater to both cash and card-carrying customers.


List of POS Agent in Nigeria?

If you intend to become a POS Agent in Nigeria, some of the best companies to consider based on cost and commission rates are:

  • OPay POS
  • Kudi POS (Nomba POS)
  • Palmpay POS
  • Baxi POS
  • Moniepoint POS
  • Pay force
  • Firstmonie POS
  • Bankly
  • Paga
  • Zenith Bank mobile money agent
  • Access Bank CLOSA agent
  • Quickteller Paypoint
  • Ecobank Xpress point

Pos Charges

1. GTbank charges a fee of 0.75% for each payment or service made with the POS.
2. Opay Initial charge per transaction is 0.6% and then 0.5% after upgrading to Preferred Opay Merchant status
3. Palmpay POS withdrawal charge is 0.5% on withdrawal transactions. For deposits, Palpay charges a fixed fee of N10 naira regardless of the amount being deposited
4. Moniepoint MFB : Withdrawal: 0.5% (₦1000 – ₦19900), 100 Naira Flat for (₦20K – ₦1,000, 000) AND Deposit: ₦12 Naira

POS Machine Price

There is no fixed price for POS terminals in Nigeria. The prices for POS machines in Nigeria can range from N45,000 to N65,000 to N75,000 and can get as high as N200,000 depending on the specifications of the POS machine.

Different POS terminals have different specs like 2G, 3G and 4G as well as other types of features.

The cost of a POS machine in Nigeria depends on the bank or company you want to be an agent of or you’re buying from.


How to Apply for POS Agent

You can apply for a POS machine online or go to the bank or company’s office. But this process can take from 2 weeks to a month for everything to be set and for you to start earning as a POS agent.

Meet Ogbeide Frank, popularly known as perere, a blogger who loves writing about finance and Tech. He studied Business administration at the Ambrose Alli University Ekpoma and Mobile Communication at Orange College Malaysia .Frank have worked as a banker and consultant in variety of Nigeria agencies

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Ogbeide Frank loves writing and research about finance and Tech. He studied Business administration at the Ambrose Alli University Ekpoma and Mobile Communication at Orange College Malaysia .Frank have worked as a banker and consultant in variety of Nigeria agencies For Advertisement, Content marketing and sponsored post: contact :
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