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How to Start a POS Business in Nigeria



POS Business in Nigeria

In this article, you will not just learn how you can start a POS business in Nigeria but how you can make the business profitable by diversifying into different other businesses. In this article, you will also learn the capital needed to start the business and the Nigerian banks you can open a POS business with.

If you want to know about all this read the article to the end. POS business also known as a Point of Sale business is one of the most popular businesses in Nigeria today because of the massive profits it yields daily. From this business, I have seen many people make as much as #30,000 – #50,000 daily just because they are properly positioned and they are doing other business like sales of recharge cards, soft drinks, and pure water business, and more.

What is POS?

POS also known as Point of Sales in banking is a portable device that facilitates payments for goods and services at merchant locations using payment or debit cards issued by all banks on the network. If you are been to shopping malls or supermarkets for many years you will know that the machine was majorly used for payments of goods and services. 

It is not that many did not know what else the Point of Sales machine can do or the services it renders. They know the machine was restricted by so many factors then especially the Central Bank of Nigeria (CBN) regulations. The machine can actually do a lot of things today that the average Nigerian does not need to visit the bank regularly to make transactions.

Today, you can deposit money, withdraw, pay Nepa bills, buy airtime, pay GoTV or DSTV subscriptions, buy internet subscriptions, and more. However, the most common transaction done with the POS is cash withdrawal.

Is POS Business Profitable?

This is perhaps the most important question that everyone wants to get an immediate answer to. Well, averagely depending on your location and some other things you can make as much as #15,000 – #50,000 per day from rendering POS services alone.

Now, imagine that you have other businesses like phone charging business or phone accessories business alongside your POS business in Nigeria. You should be making an average of #50,000 – #100,000 daily. So if you ask me I will say that the business in Nigeria is a profitable business idea on all sides.

As a POS agent, you will be earning #100 or more depending on the kind of service you render and the quantity of service. For example, in my area here POS agents in Nigeria charge #100 for every #5,000 withdrawals or deposits. Imagine you attended to 50 customers in a day that wants this same kind of transaction. That will be #5,000 for you as profit.

Capital Needed to Start POS Business

The capital you need to start a POS business in Nigeria depends on the bank you want to start the business with. The charges for this business in Nigeria also depend on whether the bank is a commercial bank or a microfinance bank. In Nigeria here, you can start a POS business with any bank including fintechs.

There is hardly a bank in Nigeria that you cannot start the business with. To start a POS business in Nigeria you will need a capital of at least #400,000. This money will be deposited in your merchant account to start.

How to Start POS Business in Nigeria

Here is the step-by-step guide on how to start a POS business in Nigeria today.

1. Get the Capital Required

This is the first step on how to start a pos business in Nigeria. I have mentioned the capital needed to start a POS business in Nigeria. This is the least amount you need in your account. However, there are some banks especially microfinance banks that allow you to get a POS machine at lower capital.

Whatever the capital it is you need to get the capital you need and like we usually say on this blog we discourage the getting of loans to start businesses. So never be pressurized. Take your time. If you do not have the money you can always start with a low-capital business first and as time goes by when you have made enough money start your post business.

2. Acquire the Machine

This is the second step to starting a pos business in Nigeria. After acquiring your capital the next step will be to acquire your pos machine. Pos machines are issued by microfinance and commercial banks so this means that you can approach any bank of your choice to get your machine.

Almost all commercial banks have their own pos machines they issue so is the same for microfinance banks. You just need to do your finding and look for the one that really suits your pos business. I have heard many stories from customers about their banks so you need to take your time and way the odds.

Which bank is best for pos business in Nigeria and what are the benefits of doing business with them? There is a process in acquiring a pos machine from any bank in Nigeria. You might need to link your account (an old account) to your pos machine or open a new account. It depends on the banks and its requirements.

3. Learn How to Use it

The POS machine is a simple machine to operate but just like any other electronic; one needs to learn how to use it before you are able to do transactions with it. You do not want to make mistakes in any withdrawals or deposits as this will make you look like a novice in the business.

To master the POS machine you can start first by doing transactions for family and friends. Since they know you very well it reduces the risk in case you make mistakes in the transactions. As I explained, there are many things you can use the POS machine to do.

But for starters, you should learn about deposits and withdrawals since this is the most common reason Nigerians patronize the POS centers. 

4. Choose a Right Location

Except you are starting your pos business in Nigeria from home it is very important you choose the right location. You do not necessarily need to rent a shop especially if it is only the business you want to be running.

It has been proven many times that when you are at a bus stop, T-junction, or roundabout where thousands of customers pass every day many customers will transact with you. For example, if you set your tent in a popular market if 1000 commuters pass daily at least 100 commuters will patronize you. 100 commuters x #100 per charge is a good profit.

5. Start your Withdrawals and Deposits

The best thing about a pos business in Nigeria is that it is a mobile business the only disadvantage is that you have to carry cash everywhere you go. This tells you that you can start your pos business from anywhere in Nigeria. It is not a must for you to rent a shop or get a space before you start the business just start.

Also, it is important to make accounts for your transactions. You need to write all the transactions you have made and the charges you have collected. The best thing about the pos business in Nigeria is that customers hardly have issues with the pos machine. If there is an issue it is mostly from their banks.

For this reason, you should not write their card details. I repeat do not write the card details of your customers as this will portray you as a dubious person.

6. Profits in POS Business

To make huge profits from your pos business in Nigeria you can hire someone a male or female to do the transactions while you pay them 20 – 30k monthly as salaries. With this, you can open more branches in a short while which will, in turn, make you more money.

Another way, you can also make more profits from your pos business in Nigeria is to be always open for business. Personally, I have noticed that pos operators that open for longer hours and on Sundays make more money than those who close early or do not open on Sundays.

Lastly, you can increase profits in your pos business in Nigeria by starting another business alongside your pos business. As I said earlier, you can start a phone accessories business or a phone charging business alongside.


The POS business is a lucrative business in Nigeria especially because of the crowd and sometimes network problems in banks. Nigerians are tired of all these mostly the youths that is why they will do business with you. If you stay true to everything I have shared here I believe you will have a successful pos business in Nigeria.


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Ralph Bamigboye is an Accountant. He is the owner of, and Finance Naija YouTube Channel. He has helped many individuals to start their businesses and make money online. How can he help you?

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