How To Start POS Business In Nigeria (2023)

This article is a guide on how to start Point of Sales (POS) business in Nigeria this 2023. In the country today, there are a lot of POS centres springing up and this is one genuine business that if patiently run, can guarantee you great returns on investment.

How To Start POS Business In Nigeria

The point of having and owning a POS business, also known as agent banking business, which is an extension of financial services offered by banks and other financial institutions to places where there are limited bank and ATM presence is so that your centre can serve these areas and address their financial needs by providing withdrawal and deposit services, as well as helping with certain utility payments such as DSTV, GOTV, Startimes, PHCN, etc, at affordable rates that guarantees you profits in the long run.

POS machines are also used in retail shops, offices, supermarkets, filling stations, pharmacies, eateries, and so on to make payments. While POS agents are not directly employed by banks, they are sometimes referred to as bank agents because they offer financial services on behalf of banks on agreed commission that creates a win-win situation for them and the banks involved. This business is very profitable and it is one of the best means of making passive income.


The Point of Sales (POS) business in Nigeria, which as aforementioned, is also known as agent banking, commenced in the country in the year 2013, and this took effect after the Central Bank of Nigeria (CBN) released its guidelines on how the business should be operated and managed, and since its inception in the country, it has become a mainstay, allowing commercial banks to reach a large number of people in communities with little or no banking presence and ATMs with their banking services. These places are known as the unbanked and underbanked communities in the country and the business does better at such places.

A POS business is one in which the agent owns the centre for transaction of his or her business, this is for the avoidance of doubt as it is not the banks or the mobile payment companies that own these agent banking centres but the agent themselves. These POS agents run their business by conducting transactions that enable their clients to make financial transactions such as deposits, withdrawals, funds transfer, utility bill payments, airtime recharge, to mention but a few.

What a bank or mobile payment company does is to equip the agents with a POS machine (card reader), a mobile phone, barcode scanner, personal identification number (PIN) pads, personal computer if the need arises, etc. These agents are third party agents and can serve as agents to as many banks or mobile payment platforms as they have capacity for but that is rare as majority just stick to one platform and go about their businesses shrewdly.


First thing people think about when trying to venture into a business is to know how much returns on investment they will get by forecasting about it and getting a clear picture on the business venture they are about to embark in.

Someone may then ask, how profitable is POS business in Nigeria? The answer is that this business is very profitable for someone who requires passive income. This is because for every transaction done, you are getting a commission from the bank or mobile payment company and depending on how much is involved per day, your commission is expected to increase significantly as there are different types of transactions to benefit from on a daily basis.

For instance, the amount you will make from a withdrawal transaction worth ₦10,000 is higher than what you make from another transaction worth ₦1000, and if you make like say ₦400 per customer withdrawing ₦10,000 as opposed to the ₦100 you make for example from customers withdrawing ₦1000, you will see that in a day if you have a large turnout of people, your profit will be high, and irrespective of which transaction you undertake, the most important thing is for you to have a large turn out of people per day and your commission will increase sharply. Simply put, this business is very lucrative for those who have the patience for it.


Below are the step by step processes involved in starting a POS business in Nigeria this 2023:


The first thing you must do when you want to start your POS business in Nigeria is to find a host, this is very vital for the success of your business without which you will struggle to keep it afloat. A host is a financial institution such as a bank or a mobile payment company that serves as the source of the financial services you render to your customers in your community. Good hosts for your business include the banks in the country that support POS businesses and mobile payment companies like Quickteller, Paga, Opay, to mention but a few.

Almost all Nigerian banks support agent banking services. So once you decide on the bank that will be your host, the next step is to visit the bank and get their terms and conditions for opening a POS centre with them. Be informed that you will be required to fill out some documents and agreement forms that stipulates the terms and conditions from the bank. In line with the CBN guidelines, once you meet the requirements, the bank will agree to be your host.

You should also note that you must have an account for a direct deposit for the purpose of your POS business and provide some documents as part of the requirements for opening your business with the bank as your host.

Some of the documents required are as follows:

  • Valid means of identification (Driving Licence, National ID Card, International Passport or Voter’s Card).
  • Bank Verification Number (BVN)
  • Two (2) current passport photographs
  • Two (2) current account references
  • Evidence of business registration (CAC Certificate)
  • Tax Identification Number (TIN)
  • Memorandum and Article of Association.
  • Credit Bureau Report
  • A minimum working capital of ₦50,000

For mobile payment companies, you will need to visit their official websites or go to their nearest office to you to make enquiries on how to start your POS business with them.


The importance of getting a good location for your business can never be overemphasized. When you want to site your shop, you should do that at places where there are very few ATMs and banks that serve your area. This is because with limited or no ATMs and banks, you have more people visiting your shop for transactions thereby profiting your business.


After finding a good location for your business, next thing to do is to make ready your most important work tool, which is your POS machine. This is what you will need for your customers to make all their financial transactions. The cost of POS in Nigeria is currently between ₦85,000 – ₦100,000 and some banks like First Bank can even provide you with free POS machines if you meet their requirements.

Such requirements include you having an account with the bank. While some banks require you to have a current account with them to be able to get a free POS machine, others require that you maintain a savings account with them and you are good to go. Your bank’s customer support or account officer can talk you through this process.

Endeavour to collect your POS document from your account officer or the nearest branch of the bank that serves as your host so that you can fill it and sign where necessary, then submit. Some banks allow you to download the document online. Once this is done, it takes about two weeks, that is, fourteen days for your POS machine to get to you.


Once you are through with steps 1-3 above, the next step will be to advertise your business in order to create awareness about what you do using various social media platforms as well as word of mouth and print media. Then you can commence rendering your services which include the following:

  • Cash deposit and withdrawal
  • Balance inquiry
  • Funds transfer services (local money value transfer)
  • Bill payment (taxes, utilities, tenement rates, subscriptions, to mention but a few)
  • Generation and issuance of mini statement
  • Cash disbursement and cash repayment of loans
  • Agent mobile payments/banking services, and so on.


This is a guide on how to start your POS business in the country today. There may be more steps involved if you visit the banks and mobile money payment companies closest to you to make enquiries and we advice this, but what this article has helped you do is to serve as a pointer in order for you to begin this business and thrive in it.

The Author

Maduawuchi Obialo

Maduawuchi Obialo is the founder of Nigerian Guide and the Editor-in-Chief at Nigerian Infopedia. He is a professional Web Content Developer and a Biochemist.


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  1. This is nice writeup brother. Thanks for this information. It is very timely sir.

  2. What if you have an account with another bank and you want a different bank to be your host?

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