pos business guideline in nigeria

How to start a POS business in Nigeria ,the complete Guide to Starting a POS Business in Nigeria.

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Point of Sales (POS) has emerged as one of Nigeria’s most lucrative industries since 2013. It practically resides on every street. It is a successful company, thus that is the reason.

Because people want to deposit money, take it out, or engage in transactions of any type daily, it is a business where you don’t have to worry as much about money, space, and customers.

Due to first-come, first-served policies and the requirement that everyone wait in line, everyone is familiar with the bank’s regulations.

You now have a way to benefit from customers who want to withdraw or deposit money without going into a bank or standing in a queue to withdraw from Automatic Teller Machines (ATMs)

This creates an avenue for you to make many profits from people who need to withdraw or deposit money without entering the bank. 

In addition, the commencement of POS business has paved the way for all monetary-related services to get to the public, especially in unbanked regions. 

A POS agent does his operation under a POS service provider. It is a bank-like or monetary technology company. 

He saves cash at hand for transactions, which will incur a bank charge fee.

There are numerous transactions for customers to choose from in the POS business.

It is either the customer wants to withdraw, deposit, pay a bill, or open a personal bank account. The agent uses a POS device to carry out all cash transactions with the customer’s debit card. 

Is the POS Business A Profitable Business? 

Yes, it is. POS business otherwise called Agent banking services has become one of the businesses people do to eradicate poverty. Below are reasons people venture into the business. 

  1. There is an insufficient number of functional ATMs which results in long queues in the bank. Once you start up a POS business, those people in need of any form of transaction will get it done in your shop instead of wasting much time in the bank. 
  1. Poor network service at ATM points and banking halls has propelled many customers to find alternative means of performing their transactions. 
  2. It creates employment for the unemployed. Instead of carrying files from one office to the other in search of jobs, you can start up a POS business that could be bringing food to the table. In addition, the low barrier entry requirements in starting POS business points provide much-needed employment opportunities amid high unemployment rates even for the graduates. 
  3. it also enables consumers to effortlessly withdraw money when the nearest ATMs are far away.
  4. It does not require an expensive structure. You can just construct a small kiosk using woods or planks. 

Everyone is aware of how expensive it is to afford annual shop rent in most places in Nigeria. 

  1. There is large customer traffic. Numerous financial transaction volumes pass through the POS agency banking business in Nigeria and mean significant business turnover for operators. For instance, everyday people need money to control, purchase or defeat their demands. And the more the demand, the more the customers. 
  1. Numerous Streams of Income: 

Starting a POS business is a good way of broadening your income net. In addition, the business provides a sustainable means of income and may even transition to a primary source of income if sufficient attention is paid.

  1. It doesn’t require so much capital. The capital is affordable, unlike other businesses you can only venture on when you have a minimum of #500,000. With #200,00, you are already an agent. 

How can I make money as a POS agent? 

POS business has been a viable business since 2013. If you want to make money from the POS business, there are many factors to be considered. Such as; 

  1. Location: POS Business is beneficial in communities with no banks and places where Automatic Teller Machines (ATMs) are not sufficient to meet the financial needs of the community. You should not stay on an island where few people need bank services. 

To excel in the business, get a place where goods and services are sold and rendered; such as parks, shops, offices, supermarkets, fuel/gas stations, pharmacies, eateries, and many more respectively. To succeed in the business, The high volume of people movement will affect your daily profit as more customers patronize your service. You should choose a location where there is adequate network service, a reduction in crime rate, and proximity to ATM points. 

  1. Excellent Service. Making money from the business is based on how you treat people when they come for any form of transaction. You must have a permanent location where people can find you when they require your services. And learn to treat your customers with sincerity. 

Don’t use abusive words on them. Treat them carefully and don’t be deceitful. For instance, no matter how disrespectful a customer is, don’t use abusive words on him. Learn to tolerate them and make your money. 

  1. CAPITAL: The amount required to Start a POS Business should be around at least ₦250,000.

If you intend to offer just one service (e.g withdrawal) ₦150,000 will do. The more the cash at hand, the more the profit. 

Try your best to have enough cash needed by your customer who withdraws from you. If not they will go to another agent. 

Note that the prices at the beginning are based on your location. And you must have money in your account for transfers. 

  1. Using a functioning POS machine. Having a POS machine without good service can lessen your profit in the business per day. so apply to a bank and start

Make sure the POS machine has a good transaction service that is ready for transaction at any time. 

  1. Be consistent. The POS is not a hit-and-run business. Before you venture into it. Make sure that you are going to be available at your working place. If not, you will lose customers. 

How to make a profit from POS business 

As earlier hinted, the business has created job vacancies and financial strength by enabling the Agent to make money in the following ways;

  1. Through Commission. Banks pay agents commissions based on the number of transactions they operate each day. If you are situated in an open place where there is a continued need for transactions, you shall get enough commission from the bank. 
  2. Service Charges. When you render service to customers, you can also charge them a particular amount, especially on bills, taxes, and subscriptions. Once this is done daily, you will stand the chance to earn a lot of money from the charges. 
  3. Float. This float depends on your cash management strategy, you can use cash deposits and net of withdrawal for your primary business.
  1. Create Awareness: The more you operate in the business, you are not only boosting your stream of earnings, but you are also attending to the demands of the people in your community. Once you are in a location that sees high human traffic, you can be making as much as ₦7,000-₦15,000 daily. More than a person that is situated close to functioning banks and ATMs. 

How To Start a POS Business:

As a novice, you can’t just venture into the o POS business without knowing the process.  It is a very lucrative business.  No doubt, but if you start it without proper inquiries, you might end up regretting it. 

There are strategies to follow to start a POS Business. They are :

  1. HAVE AN ESXISTING BUSINESS: There must be an existing business of yours in operation at least for 12 months. Also, you need to secure a permanent place such as a shop or office from which you operate. After that, you must have been registered with the Corporate Affairs Commission as any of the following entities; Company/Business Registration Website, Limited Liability Company, Sole Proprietorship, Partnership, Cooperative Societies, Public Entities, Trusts, or any other entity.
  2. APPLY to a Bank: No bank in Nigeria doesn’t allow agent banking services. So, as soon as you decide on the bank of your choice, get the details of their requirement. The reason you should approach a bank is to avoid getting it from an outsider. 
  3. REGISTER YOUR BUSINESS NAME WITH CAC. As an agent in the POS business, there are valid documents you are expected to have. They include valid means of identification e.g Driver’s license, National ID card, International passport or voter’s card, BVN, 2 passport photographs, 2 current account references, Evidence of business registration (CAC Certificate), Tax Identification Number (TIN), Memorandum and Article of Association, Credit Bureau Report, and a minimum working capital of N50,000.
  4. Find a good location. Location plays a vital role here. A good location where people need your transaction is a priority. If you can get your location spot on in this POS business your success is 50% done already. I can tell you that it has special benefits. 
  5. Get The POS Machine. The POS machine is the only machine you can use to operate the transaction needed by the customer. You should get it. They’re three ways you can probably acquire a POS machine. You can get it through banks, or bank agencies. Before you get the POS machine, there are requirements. It includes having a current, savings, or corporate account with the bank, a valid account number, one or more mobile number(s), a business email address, and lots more. 

There are banks you can reach out to if you need a POS machine, they are UBA, First Bank, Guaranty Trust Bank, Zenith Bank, Access Bank, Skype bank, Ecobank, Fidelity Bank, Diamond Bank, and Polaris bank, just to mention a few. 

Aside from banks, there are other mobile operators to get POS machines example are: Examples are Paga, Quick teller, Opay, Pocket monie, Nexgo POS, citiserve, BranPOS,  and many more. 

  1. RENT A SECURED AREA FOR BUSINESS: Aside from that,  keep your cash in your bag. Don’t always expose the amount of money in your bag, to avoid being robbed. 
  2. Get places where there is a good network. The network can make you pay any charges in any transaction. The continuation of these charges can make the business pay excess money in the business. For example, some pos charge 0.70% plus ₦20 for any transaction below ₦10,000. And they charge ₦100 for any transaction above ₦10,000. Meanwhile, there are others that only charge ₦10 for any type of transaction. Whether you’re sending or receiving the service charge doesn’t change.
  3. Try to render many Other Services. You can render your business through the use of POS terminals, card readers, mobile phones, and bank-linked mobile wallets for real-time transaction processing. Once your POS machine is gotten, you can start providing the following services; Cash deposit and withdrawal,  checking of Balance, Funds transfer services (local money value transfer), Bill payment (taxes, utilities, tenement rates, subscriptions, e.t.c), Generation and issuance of mini statement, Cash disbursement and cash repayment of loans, Agent mobile payments/banking services. 
  4. Avoid rendering services on credit: Creditors do not in any way promote business. As a person who wants to start a POS business, ensure that your customers pay immediately after a transaction is done. 
  1.  ADVERTISE YOUR BUSINESS: Get a Banner and place close to your shop, people can easily see and walk in.

By doing this, people will always be given an awareness that there is a POS spot over there. 

Ensure that you are not in a hidden place. 


Starting a POS business is another way of eradicating poverty. History has proven to us that the business makes surplus income. 

To thrive in the business, you need to strategize some principles indicated above. 

A POS business is not for the weakling. It is for dedicated people who are ready to meet the demands of the people. 

Getting a friendly location occurs to be one of the most effective needs of a POS agent to make huge profits. 

Locating at places where the ATMs are faulty or they pay transportation fares to any bank is a long way to create customers for yourself. 

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