The POS Business in Nigeria

The Point of Sale (PoS) business, otherwise known as the agent banking business is an extension of the services offered by financial institutions to enable them reach out to, and offer seamless services to a wide range of customers. Although PoS machines are being used by businesses (such as restaurants, supermarkets, and filling stations) to facilitate payments, thereby encouraging cashless policy, yet, specialized PoS businesses offer services like cash withdrawal, funds transfer, payment of utility bills, and so on.

This business was originally introduced to cater for people in rural areas, or areas where banks are not easily accessible. However, it has recently become so popular even in cities. The PoS agent offers these financial transactions at an agreed (usually a standard) commission.


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The rate at which establish PoS business will make you wonder if it is so profitable, or why exactly many people are gravitating towards that direction. Some of the obvious advantages of the business however are that:

  • There are readily available customers
  • It does not require huge capital or a large workspace
  • it is flexible, and can be incorporated in other businesses

Readily Available Customers

One of the basic questions you ask yourself before starting a business is "who your customers will be". The PoS business is one that is of mutual benefit to both the business owners and the public. This is because the crowd in banking halls and the long queues at ATM galleries can be so frustrating. In that case, most people will appreciate having an alternative to these, especially when it is in their locality.


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The Long Queue at an ATM Gallery [source]


A PoS business therefore requires no special publicity or advertisement. It must however be situated at a distance from a commercial bank or another PoS outlet.

Capital / Workspace

Banks approve and supply prospective PoS agents with the necessary materials needed for the business after such agents have met their requirements, some of which are valid means of identification, Bank Verification Number (BVN), Tax Identification Number (TIN), and so on. Except the agent is already running a business and has an outlet, he/she may not need more than a small kiosk as an outlet. This is the most prominent PoS outlet around.


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A Typical PoS Agent's Outlet [source]


Flexibility of Operation

Although agent banking is a business on its own, it is often adopted by retail store owners as a means of passive income. In this case, a worker or a set of workers is/are dedicated to operating the PoS terminal for withdrawals and transfers for interested customers. They often use this method to easily bank cash collected from customers who come to buy goods in the store. This is very common in filling stations, where huge amount of cash is received daily.

Agent banking / PoS business is a means of expanding your business, or a small scale business idea, as the case may be. However, attention must be given to choice of location, and the safety of the business environment. The government also needs to put in place policies that encourage the establishment and sustainability of small scale businesses.

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15 comments
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I must confess, it looks like PoS business has almost taken over the streets of Nigeria. Even around my neighbourhood, there are many of them and it has helped people to run quick financial transactions and pay utility bills without going to the ATM. From what I can infer, it is a really good business to venture into, but you need to choose your location wisely.

Nice piece buddy

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Very correct bro. The long queues at ATM machines is even unproductive to business. Having a POS alternative is a very welcome idea.

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Pos is taking over the entire streets of the nation. I think it'd be more convenient if Cryptocurrencies are introduced to meet people of our nature. This is something I always suggest to any POS stand I stumble on, discussing the benefits of it at large, and really really looking forward to seeing a diversification soon, if not, then ama be the first, hopefully...

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You have a very valid idea, but with the current constraints of cryptocurrency with the Central Bank of Nigeria, this idea may not materialize anytime soon.

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The business is profitable in both rural and urban areas of Nigeria, majorly because of certain shortcomings of financial institutions. Sometimes you find kong queues, bad ATMs, specific withdrawal limit and denomination problem.

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Definitely, it is the limitations commercial banks that brought about the idea of cash centres and Point of Sale outlets. It's all beneficial to the economy though.

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Since POS came on board, I must admit that I am really impressed. The era of struggling in bank is almost over. This is why I love this POS project very much. It is a stress saver. Forget about the charges, it is worth it. I will love to see more progress and it getting to more local areas.

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Truly, the charges are relatively low. It becomes a thing of worry only when you need to do transactions of huge amounts.

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PoS is really lucrative in its own way, especially for those with other businesses. Nice piece

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Valid point made, with pos available i avoid going to ATM it saves time for me.

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