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How to start a profitable POS business in Nigeria. (Best and easiest way to POS business))

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How to start profitable POS business in Nigeria. (Best and easiest way to POS business))

Best and Easiest way to Start a POS business in Nigeria

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POS business in Nigeria is currently one of the hottest businesses that an average Nigerian can start. ATMs are slowly taking over because of the simplicity and convenience they provide to consumers. A POS merchant or mobile money agent makes cash available to people in exchange for a commission or fee through a POS machine.

Due to the lack of ATMs and the long queues that people experience at ATMs. Now you can find someone running a POS business everywhere you turn in Nigeria.

That is why we have created this guide on Best and Easiest way to start a POS business in Nigeria

In this guide, we will take an in-depth look at POS business in Nigeria. Its common challenges and disadvantages, the cost of starting a POS business in Nigeria and how profitable and lucrative it can be. And if that's something you should go for and a POS machine you can use and agent networks you can join.

How does a POS business work?

A POS agent operates under a POS service provider, such as bank or financial technology company. The agent has cash on hand for transactions that will incur a bank fee.

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In the field of POS, the agent offers customers a variety of transactions to choose from, such as withdrawing, transferring, paying Bills or even opening a personal bank account. The POS device allows the agent to make all cash transactions using the customer's debit card. The agent selects the type of transaction on te POS terminal and the amount. Then the customer's debit card and four-digit PIN are entered sequentially.

In order to approve the transaction, the GPRS network connects to the bank's server, which, if successful, issues receipts for the agent and the customer.

How do POS agents earn?

POS businesses can be giving you NGN5,000 to NGN20,000 daily, even more. Although a huge factor in this is the location of the business.

POS agents earn a fee for every transaction made by customers, from withdrawals to airtime purchases. Sometimes the POS service provider also gives commission to the agents.

In most cases, when a customer comes to make a transaction such as a NGN5,000 withdrawal, the agent collects a fee of NGN100, from which the POS provider takes a percentage while the rest goes into the agent's wallet.

Each POS agent transaction for a customer warrants a service fee that the customer pays. The payment of this fee is where part of the POS agent's income comes from.

As mentioned, the bank or POS provider also pays the agent a daily or weekly commission like Baxi. This commission depends on the number of transactions the agent has made using their wallet or service.

Is POS Business In Nigeria Profitable?

As of October 2021, the total transaction volume at POS terminals this year in Nigeria has reached NGN 4.1 trillion. This statistic is a testimony that this business is profitable.

There are several reasons.

Banks in Nigeria only open their branches in busy areas where there are markets or many other businesses. So people living far from these places will have to drive at least thirty minutes from their homes. Many people in Nigeria are suffering from this menace and POS business is a salvation for them.

Therefore, the POS store has become a reliable alternative to the bank, especially for transfers and withdrawals.

The business also doesn't need any advertising campaign because every community needs it. POS agents place their stores in visible locations. All this contributes to the profitability of this business.


Services offered by POS businesses

Some of the services offered by POS businesses are listed below;

  • Withdrawal of funds from a bank account
  • Opening a bank account
  • Deposit of funds
  • Paying bills like electricity, TV subscription, airtime and more
  • Transfer of funds
  • BVN registration

Benefits of owning a POS store

Affordable Capital:

Many businesses need an enormous amount of capital, but a POS business is not one of them. A minimum amount of NGN 50,000 is enough to start a business and you can get it in a short period of time.

It does not need an expensive structure:

Everyone knows how expensive it is to afford a yearly rent for shops in most places in Nigeria. But a POS business doesn't need a fancy structure, at least in the beginning. Most POS businesses use a simple wooden kiosk as their business office.

Demand is high

A business needs customers to thrive, and a cash register business is never short of customers. People always need to transact all day which brings more profit to the agent.

Side hustle:

With the ever-increasing cost of living, most people need a side hustle to support their career or other business. POS business is an ideal opportunity for this. You can even hire someone to manage the store while keeping track of the number of transactions made through your wallet.


How much does it cost to start a POS business in Nigeria?

Starting a POS business in Nigeria has no fixed costs. The cost of starting a POS business can depend on whether you have secured a location (store) or not. Then it also depends on whether you have a free POS machine or not.

 The main cost you will need to start a POS business in Nigeria is the cash you will need to enable withdrawals. This can range from ₦50,000 to ₦250,000.

Getting a new POS machine/terminal from some banks or fintech companies in Nigeria can only cost between N85,000 and N100,000BAXI you can get your Baxi POS for a precautionary fee of #20,000 and Opay of  #20,000 only from Prudentj2.

Disadvantages of owning a POS store

As they say, everything that has an advantage has a disadvantage. Therefore, you need to consider the disadvantages of a POS business before you decide to start one.


Managing POS stores requires transporting large amounts of money from the bank to your place of business. POS agents and their points of sale can be the target of robbery attacks by criminals. It is important to always be safety conscious and alert.


Some unsavory characters sponsor POS businesses to conduct fraudulent transactions. You may need some tips from others who have been in the business to spot a scam when you meet one.

Banking networks:

It's never a pleasure to be a victim of a bad network when making a transaction, apart from delaying the customer it also causes unauthorized bank debits even though the money never reached the agent's wallet. Because of this common problem, most POS agents use different POS machines. It is also necessary to do proper research to know which POS service provider has a reliable network.

How to become a POS agent

A financial institution authorizes a POS agent to perform mobile money services such as withdrawals, transfers and bill payments to customers.

Before becoming a POS agent, you need to choose a POS service company. There are many of them in Nigeria. Below are some of the popular ones highlighted in the second part of this article:


To become a POS agent, you need to open a bank account with the financial institution you want to work with or work under a bank with which you already have an account. The second option is better because your transaction history can make you more qualified to be accepted as their agent.

How much does it cost to start a POS business

The initial cost for a POS business in Nigeria does not have a fixed amount but depends on some factors which are listed below;


The location where you want to open your POS store will determine the amount of money you will need to rent a store or kiosk or even an umbrella stand. You should ask around and find out the cost of setting up where you want to operate your POS business.

POS machine/equipment:
The cost of a POS device ranges from NGN 30,000 to over NGN 100,000. This price depends on the bank or Fintech company you plan to use as your POS service provider.

Available cash:

You need a significant amount of money to carry out daily transactions. It can be at least NGN 100,000 to NGN 300,000. With this amount of money, you can meet the financial needs of your customers.

Requirements for starting a POS business


As mentioned earlier, the capital required for a POS business is not expensive because you don't need much to start a business.


The next step is to choose a location for your business, somewhere with the need for a POS store and where your business will flourish. Examples of such places are markets, parks, well-populated areas and others.

Official Requirements:

The Central Bank of Nigeria has laid down some requirements that POS agents must meet before being approved by any financial organization. You can get the details of the requirements either by visiting the bank you have chosen or by contacting their customer care. CBN allows POS agents to work under different POS service providers, but the required documents for each provider may differ.

  • Valid means of identification like National ID Card, Voter’s ID Card, etc.
  • Passport photographs
  • Bank Verification Number (BVN)

Once the Fintech approves your application, they will give you a POS machine, attached with a cautionary fee, so you can begin your POS business.

Where can you get POS Machines?

You can only get POS machines from banks and other financial institutions in Nigeria.

Some of the popular banks and financial institutions you can get a POS machine from in Nigeria are; GTBank. First Bank, Access Bank, UBA, Zenith Bank, Baxi, Monie point, Kudi and Bankly.

NOTE: Prudentj2 is selling Baxi pos #20,000 and Opay #20,000. Contact us now
Apply from us and and make it faster and easier to get your opay and Baxi POS.

Which POS agent is the best in Nigeria?

If you intend to become a POS agent in Nigeria, some of the best companies to consider based on costs and commissions are:



 Here are the steps you need to take to become a mobile money agent or start a POS business in Nigeria.

#step1. Determine the cost of starting a POS business
The cost of starting a POS business in Nigeria can vary from person to person. Because of the different locations, people stay inside. 

The amount to rent a shop or space to start this business in Lagos will be different from a place like Anambra. You will also need to know which company bank to register to become a POS agent. Do they offer POS machines for free or do you have to pay? Do their requests carry any costs? You also need to consider how your store will look. Do you need a safe? How will you secure the business? These are some of the things to consider to arrive at the cost of starting this business.

#step2. Find a place
Since this will be a physical business that will require a lot of foot traffic, it is important that it is very appropriate. 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 is no easy access to banks or lots of ATMs.

#step3. Increase your capital
Since you've determined your start-up costs, you know how much you need to start. All you need is some capital and you're mostly on your way to becoming a POS agent.

#step4. Apply to become a POS agent.
 Depending on the bank or financial institution, applying for a POS agent position or a POS machine can be an outright purchase, lease or even free. Determine which one is right for you based on their requirements, commissions and fees. 

You can apply for a POS machine online or go to a bank or company office. But this process can take 2 weeks to a month before everything is set up.

POS business frequently asked questions.

How to start a POS business with First bank?

Go to the first bank, apply for their pos machine, get it and start your POS business

How profitable is POS business?

POS business is profitable as you can be making 5 to 10 thousand Naira daily

Can I start a POS business with 50k?

Yes you can start with 50k 

How to start a POS business with OPay?

Apply for Opay pos machine from us, get it and start your POS business. 

Disadvantages of POS business in Nigeria

Banking networks

What can I add to my POS business?

NIN enrollment center

How do I start a POS business?

Get a pos machine, Find a good location, and start your POS business.

Can I start POS business with 20k?

Yes but you won't make good profits to compare with someone who starts with high amount of money.

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

From 50k to 500k ( from 50,000 naira to 500,000 naira)

can i start pos business with 100,000?

Yes of course

How to start a POS business in Nigeria Guide

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