The Secret of Starting POS Business in Nigeria

POS business in Nigeria is a highly lucrative business anyone could start in Nigeria. A successful POS business owner can take home as much as 15,000 naira daily as net income.


So, learn everything you need to know about the POS business right here on this page without paying a dime for the knowledge.

However, it’s quite pertinent to note that the key to making money with POS is situating your business where there are no banks or in areas with few ATMs available for people to withdraw from.

When affiliated with a bank or financial establishment, it is called an agent banking service.

This is the means by which banks and other financial institutions reach out to those who need banking services or communities where banking services are out of their reach.

Read: Getting Started With FCMB Internet And Mobile Banking

POS business can also provide financial services like withdrawal of funds, transfer of funds, recharging of phones, utility bills, decoder subscription payments, etc.

Initially, POS was used in supermarkets, retail shops, restaurants, and other places where customers are expected to pay for goods and services.

The POS business aims to provide a way in which people can easily do their financial transactions. It has provided a source of income for many.

Those affiliated with banks help the bank provide financial services and earn a commission based on their agreements with the banks.

If you are looking for a way to create an additional source of income or earn money without hassle or sweat, then the POS business is for you.

Read: Diamond Bank Transfer Code

What is the POS business in Nigeria?

In 2013, the central bank of Nigeria launched the agent banking scheme when it released new regulations on the means and manner in which agent banking business should be carried out.

This was the beginning of the POS business in Nigeria.

So the bank agent or POS business owner will have a business centre or outlet where he will comfortably carry out monetary transactions and allow his customers to withdraw and pay utility bills, recharge their phones, check their account balance, etc.

The business is highly successful in villages, rural towns, or areas with no banks.

The POS business owner or agent can work for as many financial institutions as possible.

The POS business can be used to complement any business or can serve as a secondary source of income.

Read: How to Start a Cake-Making Business from home

How To Start A POS Business In Nigeria

Starting a POS business in Nigeria is not difficult. In this section, I will show you how to start a POS business in Nigeria quickly.

1. Get A Shop

Getting a shop is the first step to starting a POS business in Nigeria. As a matter of fact, without a shop, you cannot run your POS business.

The good thing is, given the nature of the business, you do not necessarily need to acquire a very large shop for your POS business.

On the other hand, if you already have a shop and you have a good inflow of customers daily, you can also use your shop for your POS business.

2. Location

A good location is necessary for you to succeed in your business. We advise you to pick a good location with very few banks or ATMs.

Populated areas like markets and bus stops should also be considered. The location will greatly influence how much you will earn daily.

If you find a location, you can build a kiosk or rent a building with enough space so your customers can move in and out freely.

You should also advertise your business by getting a banner where the POS service you render can be clearly displayed to the general public.

You should think it wise to install a burglary-proof door to protect you against theft.

3. Capital

When starting your POS business, you will need some money, like N50,000 to N100,000.

This will enable you to give to clients who will come to withdraw funds.

Criteria For Starting A POS Business In Nigeria

Before you can start a POS business in Nigeria, there are certain criteria that must be met.

1. Have An Already Established Business

The POS business is financial-related. Hence, it is highly sensitive.

The Central Bank of Nigeria has emphasised the kinds of people who are eligible to serve as agents.

Banks and other financial institutions will follow these instructions to the latter and scrutinise or verify persons who want to serve as their POS agents.

One criterion to qualify as a POS business owner is to have an already established business that has been active for a year.

Your business should have been registered with the government via the corporate affairs commission.

Your business can be categorised into the following:

  • Limited Liability Company
  • Sole Proprietorship
  • Partnership
  • Cooperative Societies
  • Public Entities
  • Trusts or any other entity aside from faith-based or NGOs

If your business is listed above, you won’t have any problem starting a POS business.

Read: How to Start Lottery Business in Nigeria

2. Approach the Financial Institution

Many financial institutions (banks included) allow agents to own POS businesses under their business name.

Some of the banks that have agent schemes in Nigeria include Polaris bank, First Bank, GT Bank, FCMB, Zenith Bank, Access Bank, etc. Other financial institutions have a dedicated agent platform. These include:

  • Quickteller,
  • Paga
  • Branpos
  • Pocketmonie
  • Firstmonie
  • Opay
  • Paycentre
  • Nexgo Pos
  • citiserve

3. POS Tools

So after your request to either the financial institution or bank has been approved, you will be given the tools that will be given to you to start your POS business in Nigeria.

Your bank or financial institution will provide you with the following equipment to start the POS business:

  • Point of Sale Terminal: The portable machine you will use to process debit card transactions
  • Card Reader: The device used to retrieve cardholder details like account numbers, etc.
  • Personal Identification Number, etc.

Read: How To Become a DSTV agent

Beginning Your POS Business

The POS business uses the POS terminal and a smartphone and card reader to conduct financial transactions.

Businesses that use POS systems in Nigeria provide the following services:

  • Withdrawal of funds.
  • Deposit of funds.
  • Balance inquiry
  • Deposit of funds
  • Bills Payment ( Decoder subscription, utility bill payment, etc.)

The customer comes into your shop and states what financial transaction he wants to carry out, for instance, a cash withdrawal.

The customer will present his debit card to the agent, who will ask him to input his pin after inputting the amount of money the customer wants to withdraw.

The GPRS from the POS will connect to the bank server and authorise the process; a receipt will be printed out, and the agent hands over the receipt and cash to the customer while collecting his service charge.

Best POS Companies in Nigeria

First Monie POS agency


FirstMonie is a way of bringing financial products closer to the financially excluded and underbanked by encouraging established businesses in the community to provide these services.

First Bank of Nigeria essentially owns this POS company. First Bank is a popular financial institution with a large customer base in Nigeria. Furthermore, FirstMonie offers a free POS machine, making it simple to become an agent.

To become a Firstmonie agent, you must have the following requirements:

  • A currently active business
  • A business location that is both visible and reachable
  • A legal form of identity (Voter’s card, national identity card, driving licence, international passport)
  • BVN
  • utility bill that is at least three months old

UBA Monie POS agency


UBA is among Nigeria’s most well-known and biggest banks. To satisfy the demands of its customers, the banks offer POS devices and services at sales outlets.

What steps do I need to take to become a UBA POS agent?

Obtaining a UBA monie pos will allow you to be a UBA pos agent. Furthermore, for every transaction you execute daily, you should have a monthly turnover of at least N35,000. After that, follow the procedures below:

  • Get an application form from a current UBA pos merchant.
  • The form can then be filled out, scanned, and submitted to the closest business facility.
  • Go to the e-banking helpline, sign in, and fill out the required fields.
  • After completing the registration process, you will be assigned an issue number that will be used to trace your transaction in the future.
  • UBA e-banking support will then provide you with a deployment date.

Opay POS agency


Opay is a CBN-licensed digital payment platform. They offer affordable rates and simple methods for completing POS transactions. In addition, the platform has a reputation as one of Nigeria’s most trustworthy pos companies.

What steps do I need to take to become an Opay agent?

The following are the steps to becoming an Opay pos agent:

  • Install the Opay app on your device.
  • After that, you must set up and register an agent profile.
  • After that, you must upgrade your account to agent status. You can upgrade your account by providing Opay with your personal information and documentation.

That’s all the secret to starting a POS business in Nigeria.

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