How to start a POS Business in Nigeria | Requirements 

Starting a POS business in Nigeria

We run transactions every day and our transactions usually involve money, POS has been a lifesaver, especially in Nigeria. Coping in a remote area where there is no bank can be devastating without POS. POS business in Nigeria can actually be a good business for you since everybody spends money every day and can be a lucrative business if you can start it too. You do not need to search for any other job if you can meet up the requirement and costs of starting this POS business in Nigeria.

Starting a POS business in Nigeria

So today, we will walk you through the entire process of how to start a POS business in Nigeria today.  Starting the POS business in Nigeria is not a hard task and you can actually start with very little capital, however, there are some tasks and requirements you need to be aware of before going into the business.

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How Profitable is the Point-of-Sale (POS) Business in Nigeria?

The first question that people inquire about is how much money could be made in this business. According to extensive research and a series of interviews, the POS business is a very profitable venture, as establishing and operating the business do not require high overhead. Numerous factors influence the success of POS businesses in Nigeria, with the primary element being the business’s location.

Given that a POS firm’s target market is a group of people who have little or no access to banks and ATM machines, locating your POS business in locations with a large population but few banks or ATM machines means that you’ll cash out a sizable profit each day.

Daily profits are generated by service charges applied to credit or debit transactions conducted with you and (in some situations) bank commissions paid to point-of-sale personnel.

If you charge N500 for every 10,000 naira transaction, you might earn up to N2,000  on every N40,000 transaction.

The Benefits of a POS Business in Nigeria

The benefits of launching a point-of-sale (POS) business are numerous due to the low operating costs and profitability of the firm. Operating a point-of-sale business provides an additional stream of revenue while relieving surrounding people of the stress associated with visiting bank premises to conduct business.

The Disadvantages of the Point-of-Sale Business in Nigeria

When considering the disadvantages of operating a point-of-sale business in Nigeria, two things immediately spring to mind: safety and deceptive customers.

It is well-known that a prosperous POS agent frequently carries (or transacts) large sums of money on a regular basis, making them easy targets for robberies or unwarranted attacks by criminals.

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Another issue posed by fraudulent clients who visit POS agents with false or counterfeit money is a source of concern, particularly for agents who are unable to spot fake money at sight or touch.

To combat these two significant risks, it is prudent to locate your business in a safe neighbourhood and to rent a shop or building that is difficult to infiltrate. Additionally, learn how to identify counterfeit currencies to avoid incurring large losses caused by negligence.

How to Establish a POS Business in Nigeria

1. Locate a Shop in a Convenient Location

Obtaining a shop in an advantageous location is the primary consideration when getting started. The larger the population, the more profitable your business will be, as you will earn more money while serving a large number of individuals in areas without banks.

Even if there is a bank nearby, ensure that you situate your business in areas where customers lack the time to go back into a bank branch or ATM to conduct financial transactions. Locating your shop in an area where residents cannot afford to visit a bank will provide you a significant advantage when it comes to operating your POS business in Nigeria.


2. Contact a bank or an agent

Almost every Nigerian bank encourages Agency Banking and is eager to assist you if you match certain criteria. Additionally, there are several other assigned agents that provide the necessary equipment to assist you in starting and operating a profitable point-of-sale business.

Among these are QuickTeller, Paga, PocketMonie, Opay, and FirstMonie. Standard operating procedures require you to complete some agreement forms that detail the transaction’s terms and conditions.

Your application will then be reviewed in accordance with the Central Bank of Nigeria’s terms of service.

These banks and agencies demand a few pieces of documents, including the following:

  • Proper identity, such as a National Identity Card, an International Passport, or a driver’s license.
  • BVN Number
  • Photographs for passports
  • Referees
  • A copy of your CAC-registered business.
  • A minimum working capital of 50,000 Naira
  • VII. Taxation Identification Number (TIN)

Once you have met all requirements and your application has been approved, you will receive all equipment necessary to operate your business properly, which means you can immediately begin operating your POS firm without interruption.

3. Provide High-Quality Service

Your consumers will continue to associate with you if you provide excellent services. While it is necessary to examine other factors that will assist you in getting started, it makes perfect sense for you to understand that what will keep you in business is a high-quality client relationship and service delivery.

Always strive to conclude each transaction in a cheerful and pleasant manner; in this manner, your consumers will always desire to patronize you.

4. Promote Your New Enterprise

This is an aspect of operating a point-of-sale POS business in Nigeria that is frequently overlooked. The majority of point-of-sale businesses rely heavily on “walk-in” clients who discover such enterprises exist in their neighbourhood on their own.

Because profitability is contingent on the number of people that patronize you on a consistent basis, it becomes critical to promote your business, even via the Internet, and inform people about your pricing and level of service reliability. Relying exclusively on “walk-in” consumers puts you at the vulnerability of your competition and whatever amount of clients come to you casually.

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The Cost of Establishing a Point-of-Sale Business in Nigeria

A minimum of 150,000 Naira is required to establish a POS business in Nigeria effectively.

The exact amount required to start a POS business in Nigeria is subjective due to the cost of acquiring all necessary equipment and the cost of renting or purchasing an office space (which may be a shop depending on your budget), which varies according to your location or the types of transactions you wish to render.

The most basic amount of money you’d need is enough to cover your first few transactions before you begin earning profits; this renders it one of those enterprises that a student can readily start on a limited budget.



The low investment necessary to initiate a POS business in Nigeria, combined with the business’s success potential, makes it an excellent business to start if you’re seeking a guaranteed profit with a very low overhead. The demand for banking or financial services continues to grow, especially in rural areas, which makes it quite easy to start and benefit from a business even in rural areas.

However, you must take care to position your business in areas with a healthy population and a strong emphasis on safety. Additionally, protect yourself and your business from dishonest customers who would patronize you with counterfeit currency.