How to start a POS business in Nigeria 2022

In Nigeria, agency banking or POS business is among the top highly lucrative and profitable businesses to start, even for an average Nigerian. Due to the scarcity of Automated Teller Machine, popularly known as ATM, POS business is gradually taking over financial transactions in Nigerian communities.

An agent is a person that owns or control the POS machine or business make financial transactions such as deposits, withdrawal, transfer, etc., available for people, which in return earn a commission of every successful transaction.

Thinking about how to start a POS business in Nigeria? Then you are at the right place as this article will provide you with a piece of detailed information on what you need to know before going into the business. We will discuss the cost of starting the business, benefits, challenges, and various POS companies or agencies that offer POS machines that you can register with.

In this article, we will also cover everything from hardware to the software so that you know the right option for the size of your business.

What is POS business?

POS or Point of Sale is an electronic terminal or computer system used to process financial transactions. POS business came into existence in 2013 when the Central Bank of Nigeria gave banks and other approved financial institutions the go-ahead to start running a POS business.

How to start a POS business in Nigeria

Pos business in Nigeria has been growing over time. People don’t need to go through bank stress as they can do almost everything using a POS machine, including withdrawal, deposits, transfers, utility payments, TV subscriptions, buying airtime, checking balance, and even opening a bank account.

This business has gained tremendous popularity, especially in remote communities with no banks or ATMs. They will now easily carry their financial transactions using POS machines or terminals.

How profitable is POS business?

POS business in Nigeria is very profitable, especially when you already have cash at your disposal or are already running a business. People nowadays patronize POS more than visiting a bank to avoid bank stress, especially people in remote villages where there are no banks; thus, their only option is to use a POS. the POS agent assists them in carrying their financial transactions.

With as low as fifty thousand nairas only (N 50,000), you can start a POS business in Nigeria and earn money with it. An agent can make N 5,000 to N10 000 daily with a good location and patronage. WAW! Surprise? Ok, let’s do a little mathematics.

You withdraw N5000 to a customer and charge them N 100 for the transaction bank removes N50 and earns N50 as commission. Let’s say you did 100 transactions a day; your making for that day will be 100 X N100 = N5,000.

Note, transaction charges depend on the amount involved.

What is the cost of starting a POS business in Nigeria?

There is no fixed price or the amount you must have before starting a POS business. Nevertheless, some banks and financial institutions request a certain amount before approving your request with them, while others are free.

For instance, to become a first monie agent of the first bank, Nigeria must at least have a minimum of 50k in your account before registering you as an agent, while union bank e=request for 20k.

Others offer their POS machine or terminal for free, but you must meet their daily transaction limits.

But generally, you must need money to start a POS business because you need it to make transactions such as withdrawal, deposit, and transfer. So I suggest you have at least 150k to 200k to start comfortably.

Ways POS agents earn money.

  • Commission earn from the transaction:

Most financial institutions, especially banks, pay agent commission for every transaction carryout. Some pay immediately after a successful transaction, while others pay monthly.

  • Service charges

A POS agent charges costumer for every service rendered, like payment of bills or subscriptions.

Make sure you create trust in your customer’s minds to keep the money coming.

Benefits of POS business in Nigeria

Fast payments
Better customer management
Better security
Less stress
Steady income

How much is POS charge in Nigeria

Every financial institution charges a certain percentage or amount per transaction. Some charge from the agent account while others from the customer account.

Below are the list of POS charges in Nigeria

  • Monie Point POS charges


N 100 to N19, 900 = 0.5%

N 20,000 and above = N 100 flat


N 20 flat

  • Kudi POS charges


N 4,500 and below = N 25

N 4,501 to N 25,000 = 0,6%

Above N 25k = N 150

Transfer is N 30 flat

  • Baxi POS charges

All withdrawal is 0.65%

And transfer is N 30 flat

  • Payforce POS charges


N 100 to N 5,000 = N 30

N 5,001 to N 16,500 = 0.6%

N 16,501 to N 100,000 = N 110

N 100,001 and above = 0.15%

Transfer is N 25 flat

  • Pay center POS charges


N 100 to N 10,000 = 0.55%

N 10,001 to N 15,000 = N 65

N 15,001 to N 20,000 = N 75

N 20,001 and above = N 80


N 100 to N 5,000 = N 10.5

N 5,001 to N 50,000 = N 26.25

Above 50k = N 50

  • Union bank POS charges


N 100 to N 20,000 = N 100

N 20,001 to N 50,000 = 150

N 50,001 to N 100,000 = 200

Above 100k = N 250

Same charges with transfer

  • First bank POS charges

N 100 to N 10,000 = N 100

N 10,001 to N 100,000 = 200

Above N 100,000 = N 250


Intra bank transfer

N 100 to N 10,000 = N 50

N 10,000 to N50,000 = N150

Above 50k = N200

Inter Bank transfer

N100 to N10,000 = N50

N10,001 and above = N200

Where can I get POS machine in Nigeria?

Only banks and other approved financial institutions offer POS; some offer POS immediately after registration and approval, while others you have to work with their mobile application to monitor your progress before providing you the POS machine.

POS Agents in Nigeria

Below are the lists of banks and approved financial institutions that offer POS.

Union direct POS
First monie pOS
Opay POS
Kudi POS
Baxi POS
Zmonie POS
Monie point
Quick teller
Ecobank POS
Pay force
Kolomoni POS

How to start a POS business in Nigeria

Thinking about how to start a POS business or become a POS agent ? below are things to consider or steps to follow to begin.

Capital; money is significant for starting any business, especially a POS business. You need cash to transact. Therefore, capital is substantial when starting a POS business.
Location; the location of your POS business matter a lot. It must be situated where people are and must not be close to a bank or ATM to not affect your business as more patronage more money.
Get register; after considering the points above, now it’s time to apply to become an agent. We listed different financial institutions and bank that offers pos above. You can approach any one of your choice and request or apply to become their agent.


You will need to provide some documents for the registration, such as a valid ID card, passport, referees, BVN, and utility bill.

Disadvantages of POS business in Nigeria

Network problems from banks and service providers
Attack from robbers or criminals
Lack of power supply to charge the machine
Inadequate regulations
You can be deceive


POS business is an excellent business to venture into as it provides an excellent source of income. It is easy to start and highly beneficial. Search for any bank or financial institution you like and their charges and register with them.

Ensure your business is in a good location where many people are busy and no close bank or ATM.

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