POS Business in Nigeria: How to Start, Cost & Requirements in 2024

  • October 1, 2023

Even though it is not an untapped business in Nigeria, POS business is one of the fastest growing businesses that continuously get new entrepreneurs every day.

Why is that? Of course, if not because of the huge amount of money that can be made from POS business in Nigeria, no one would even turn attention to it as it is too saturated.

Despite being saturated and competitive, POS business is very profitable as you can make up to 20,000 Naira daily and even more as a POS agent if you get things right.

Yes, it is profitable and anybody can start it (even students), but to make it a success and make a huge amount of daily income from the business, you need to know the in and out of the business, how to start it, and what to do to maximize your profits.

To supply you with all that information is why we created this post to show you exactly how to start a POS business in Nigeria, how much you need to start, and how profitable it is.

That’s not all, but we will also provide you with some bonus tips on how to succeed as a POS agent in Nigeria.

If you’re ready to know all that and kick start a profitable POS business in Nigeria, take a seat and let’s get started!

Overview of POS Business in Nigeria

POS Business in Nigeria

Introduced by the Central Bank of Nigeria (CBN) in 2013, POS means point of sale. The business involves completing simple financial transactions for people and getting paid for your service.

The services rendered by POS agents are made possible through POS service providers which usually include banks, fintech companies, and microfinance banks.

With the two brief explanations above, I believe you’ve gotten a clue of how the POS business works. That is, as an agent, you’ll get a POS machine from banks or fintech companies, provide simple financial services for people including withdrawal, deposit, transfer, airtime purchase, etc., and for every completed transaction, you’ll charge your customers a fee, and sometimes get incentives from the POS provider.

That’s simply how the POS business works in Nigeria and the ways in which agents make money (i.e through charges, and incentives).

Read Also: How to Start a Profitable Cooking Gas Business in Nigeria

What is Cost of Starting a POS Business in Nigeria?

Now that you’ve known how the POS business works and how to make money from it, how much do you need to start a POS business in Nigeria?

POS business is one of the businesses that doesn’t require huge startup capital. Therefore, it can be started both on a small scale as well as a larger scale.

On a small scale, you can start a POS business in Nigeria with 100,000 Naira, and on a larger scale, you’ll need 250,000 Naira and above to start this business.

Related: Easy Businesses you Can Start as a Student in Nigeria with 50K

How Profitable is POS Business in Nigeria?

Questions usually asked by lots of entrepreneurs looking to start a POS business in Nigeria are – Is POS business profitable in Nigeria?

Yes, POS business is very profitable and a lucrative business to venture into, as it is a daily income business that lots of money can be made from day in and day out.

As a POS agent in Nigeria, you can make up to 20,000 Naira and even more on a daily basis. Although, you can make way less than that amount. This is because the profitability of a POS business depends on your location. 

Take, for instance, a brother of mine in Kogi state – he is a POS agent and has his kiosk located right at the entrance of a market. On a bad day, he makes at least 7,000 Naira, and on the real market day, he makes at least 20,000 Naira in profit.

You can’t compare his sales to those agents located on just a regular street, although they also make daily income, but not as high (usually one-third the amount) as those located at an ideal business spot.

See Also: PalmPay POS Machine Price & How to Become an Agent

How to Start a POS Business in Nigeria 2023

Here’s a comprehensive step-by-step guide to start a profitable POS business in Nigeria in 2023:

Step #1: Understand the Business

Like every other business, even though you may gain a lot from this blog and other online resources about starting a POS business, you still need to carry out offline research about the business.

This offline research is often based on your location/area. Since we can only provide you with a general guide on how to start a POS business in Nigeria regardless of your location, you’ll need to relate with POS agents close to your area and ask them some questions about the business including.

  • How does the business work in your area?
  • How profitable is it?
  • How much capital is required?
  • What are the risks involved?
  • Are there some tricks to make it more profitable?
  • How much is charged per transaction?
  • Which POS machine provider has the best service/network in your area?
  • And so on.

You can still think of more and ask. Once this is done, you’re very much ready to become a POS agent.

Related: How to Make Money with The Opay App

Step #2: Create a Business Plan

Based on the results of the market survey, you’ll need to create a business plan for your POS business. Although not compulsory, it will help a lot anyways.

Unlike other businesses where your business plan includes some difficult stuff, like an advertisement, although it is among, for a POS business the major things to point out in your plan are your aims and objectives, and also an estimate of the startup cost.

Step #3: Get a Good Location

Like I said earlier, the success of a POS business depends on your location. You can’t expect to make the most out of this business having your shop in an estate.

If you want your POS business to succeed, you need to take your time to secure a good location based on the following factors:

Busyness of the Area

First of all, what you need to consider while looking for a location to start a POS business in Nigeria is how populated the area is.

The busier the area, the bigger your sales as well as profits. Ideal locations for a POS business include markets, students’ areas, beside filling stations, malls, supermarkets, post offices, and so on.


Second thing to consider while searching for a location for your business is the amount of POS agents already in the area. Usually, the best place to start this business is where there is no POS agent. 

However, since the business is saturated, it is hard to find a street with a POS agent, so just make sure there is no more than one POS agent in the area where you want to start yours.

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A very important thing to take note of while looking for a location for your POS business is security.

Of course, we all know that security is a big issue in the country, especially if you live in Lagos where you can be robbed off your money even during daylight.

Since running a POS business means that you’ll be handling a lot of cash, POS outlets are prone to shoplifters, and even armed robbers.

So, take your time to do thorough research about the area you want to start your business and make sure that there are little to no criminal records in the area.


Lastly, network issues! If you’ve ever gone to a POS and the machine reads transactions declined, and after walking a few steps to try another which was successful, you’ll know what this means.

Although, this deals greatly with the POS service provider, in most cases location is also a factor. However, if step one (market survey) is well done, this shouldn’t be an issue, as you would have known the best type of POS service provider that works well in your area.

Related: How to Start a Recycling Business in Nigeria and Make Millions

Step #4: Arrange for a Startup Fund

Once you complete step one to three, the basics are done, now is the time to get started with the business. First of all, you’ll need to raise a startup fund to finance all the initial investments required for the business.

Since the POS business is not a business that requires multiple hundreds of thousand naira, to start, you should be able to find a way to raise money to start.

Step #5: Apply for a POS Machine

Considering that you have your capital ready, the first thing to do with the money is to apply for a POS machine.

There are tons of POS service providers in Nigeria that you can get POS machines from, they include banks, fintech companies, and microfinance banks.

While you can easily get the machine from those platforms, there are some things to put into consideration while applying for a POS machine in Nigeria, they include:

  • Cost of the machine
  • Network
  • Transaction charges
  • Bonuses/Incentives

Usually, many POS service providers offer the machine for a cautionary fee, and sometimes as outright. Both acquisition methods come with a fee.

More so, the cost of a POS machine varies across all POS service providers, so, compare the cost as well as transaction charges before applying for a POS machine.

Network is also very important to take note of while looking to acquire a POS machine. Here are some of the best POS service providers based on network.

Step #6: Set Up Your Business Place

It often takes days to a few weeks to get a POS machine after applying. So, while waiting, you can start arranging for a business place.

POS business doesn’t require big shops or decoration of shops, as you can start with just an umbrella, a table, and two chairs.

Once the POS machine arrives, it usually comes with some promotional materials such as flyers and banners, so, you can just complete setting up your shop by making a board for the banner and hanging the flyers.

Step #7: Get Started and Make Money

Once you’re done setting up your shop, what is left now is to start the business fully.

You can use the manual that comes with the POS machine to learn how to operate the machine, do some test transactions for yourself, and once you’re good at operating the machine, start rendering financial services and making money.

How to Become a POS Agent in Nigeria: A 6-Step Guide

How to Become a POS Agent in Nigeria

1. Research Available Platforms

Start by understanding the top POS platforms in Nigeria such as Moniepoint, Opay, Paga, First Monie, UBA Monie, and so on. Each platform has its own unique benefits and requirements.

For instance, Moniepoint is recognized for its reliability while Opay provides a wide range of services beyond just POS.

2. Visit the Official Website or Download the App

Most platforms have an official website where you can begin the registration process. Some like Opay and Nomba also have dedicated apps. This is your entry point.

For instance, to start with Moniepoint, you’d visit their official site, and for Opay, you’d start by downloading their app.

3. Complete the Registration Process

This usually involves filling out a form with your personal details. Some platforms may also request additional documents like bank statements, BVN, or identification.

For instance, to register with Paga, you’d go to their site, click on “become a Paga agent”, and fill out the “Agent Interest” form.

4. Wait for Approval or Further Instructions

After registration, there’s often a waiting period. Some platforms like Moniepoint might get back to you within 48 hours, while others might take longer.

Ensure you’ve provided accurate contact details so they can easily reach out.

5. Familiarize Yourself with the Platform

Once approved, you’ll need to understand how the platform works. This might involve logging into a dashboard, as with Moniepoint, or understanding how to navigate the app, as with Opay.

The goal is to ensure you can efficiently serve customers and manage transactions.

6. Start Transacting and Growing Your Business

Now to the last step of how to become a POS agent in Nigeria. With everything set up, you can begin facilitating transactions for customers.

Over time, as you meet certain criteria (like executing a number of transactions), you may qualify for additional benefits like getting a free POS machine from First Monie.

Remember, while the steps are generally similar, each platform has its specific processes. Always refer to the platform’s official resources or support channels for precise details.

Bonus Tip: Stay updated with trends and developments in the fintech space. This will help you offer better services and stay ahead of the competition.

How to Succeed as a POS Agent in Nigeria

From step one to step seven above are exactly how to start a POS business in Nigeria from start to end. But we’ve got a bonus tip for you if you want to quickly succeed with your POS business.

The following are some tips that will help you succeed as a POS agent in Nigeria.

Start with a reasonable capital

Just like every other business, your profit in this business is also based on the amount you started with. If you start with a small capital, you may miss out on bigger transactions that will surely make you a lot of profit.

For instance, if you start with just 70,000 Naira, and get a customer that wants to withdraw 200,000 Naira, you could miss out on a 2,000 naira profit, since you don’t have enough cash.

Location is Key

Can’t emphasize more on this, but your success as a POS agent is based on your location. Although many people start a POS business even from the comfort of their home, much money can’t be made from such.

If you want to be very profitable with this business, you must situate your shop at a business spot such as markets, motor parks, and so on.

Offer Discounts on Bigger Transaction

This strategy works well, especially if your shop is located at a market. Since many people come to the market to buy and sell, if you offer sellers who deposit huge discounts, they are more likely to come back again and end up being loyal customers.

Since they transact huge amounts, their profit will be huge, and if they keep coming back every day, imagine how much you could be making from just one person not to talk of having two or three businessmen and/or women patronizing you on a daily basis.

POS Business 2023 – FAQs

Can I start POS business with 100000?

Yes, you can start a small scale POS business in Nigeria with 100,000 Naira.

What is the best bank for POS business in Nigeria?

The best bank for POS business in Nigeria is First bank (Firstmonie POS) and Opay (Opay mobile POS).

How much do I need to start up a POS business in Nigeria?

You’ll need at least 70,000 Naira to start a reasonable POS business in Nigeria.

Can I start a POS business with 50k?

Yes, you can start a POS business with 50k, just that the POS machine will be acquired on a cautionary fee.

What is the best location for POS business?

The best locations for a POS business in Nigeria are markets and motor parks.


POS business is undoubtedly one of the best businesses that generate consistent daily income if done the right way which I believe this article has provided for you. So, what are you waiting for? Take action now!