How to Start a POS Business in Nigeria

How to Start a POS Business in Nigeria

We all have to acknowledge that the financial stability of the country hasn’t been all that great but with the emergence of the Point Of Sales (POS) business in Nigeria, it has been better and has given more Nigerians options to choose where to withdraw their money.

POS business began to spread in Nigeria in 2013 after the CBN introduced the agent banking system in 2013. It opened up a new portal for financial services to reach bank customers in remote, unbanked, and underbanked societies.

Often at times, the questions ‘How to start a POS business in Nigeria?’, ‘How do I start a POS business in Nigeria?’, ‘How much do I need to start a POS business in Nigeria?’… have popped up on search engines and have also been asked in conversations… Well, to answer all these questions and more, let this article help enlighten you on this business journey.

POS Business in Nigeria

Before I dive deep into the POS business in Nigeria, it is good to note that a key or some key benefit of the POS business is that POS businesses serve as a way to extend the services offered by financial institutions to relatively unreached parts of society. Asides from queuing up at the ATM, irregular network services, etc, it also helps consumers withdraw money with ease when the nearest ATMs are far away. In other words, POS businesses make it easy for consumers to get the money they need in exchange for a commission.

I’m sure you must be asking how much you need to start up a POS business in Nigeria. Well, that depends on some defining factors and these factors are…

How Much Do You Need To Start Up A POS Business In Nigeria

To start a POS business in Nigeria, you need anywhere between 50000-200000 Naira (50 thousand to 200 thousand naira) depending on your location, means and other factors.

How to Start a POS Business in Nigeria

As I have said before, to start a POS business in Nigeria, there are some defining factors and these factors include:

1. The Location

You don’t want to start a business in a remote area. Location matters a lot in business because it has to do with the flowing in of customers. Densely populated areas work great for a business such as this. Look for crowded areas with pedestrian traffic such as markets, motor parks, residential areas, and so on.

2. Start with Enough Money

The definition of ‘enough’ here does not have a specific figure. Often at times, I’ve heard questions like ‘Can I start a POS business with 50 thousand naira?’ The actual truth is that the price you want to start with depends on the area and the demand for money in that area.

I have this friend who is also into the POS business. When he started this business, he started with 200 thousand naira. As huge as it was, it was too small because there was a particular customer who needed exactly 200 thousand naira and he was forced to give everything out because he was new to the business and didn’t know the ins and outs of the business.

The truth is that to start a POS business is quite strategic and tactful.

3. Applying for the POS Machine

This is also one of the most important tasks of the business. According to experts, there are two ways of getting a POS machine; through commercial banks and or other finance agents. The cost of acquiring the POS machine varies from issuing agents and how strong or advanced the connection runs.

To get a POS machine from a bank, some requirements ought to be met per the CBN directives. However, whichever bank you decide to approach, it is to your advantage that you own an active account with them.

Requirements for Starting a POS Business in Nigeria

According to CBN, the requirements for starting a POS business include:

  • A valid means of identification, for example, a national ID card, voters card, active driver’s license, or an international passport.
  • A registered business name
  • A passport photograph
  • Account number
  • Phone number
  • Business email address, and
  • Bank Verification Number (BVN).

Some of the designated banks assigned to issue POS machines include First Bank, United Bank for Africa, Guaranty Trust Bank, Diamond Access Bank, Zenith Bank, Wema Bank, Fidelity Bank, Union Bank, Keystone Bank among others. Owners of these accounts in any listed banks have an advantage.

One can get the machine at a very low cost and the banks also accept instalment payments if the potential business operators cannot pay at once. However, there are alternative options to get the POS machines from which include microfinance banks, and mobile operators like Interswitch, Quickteller, Paga, FirstMonie, Opay, Palmpay etc. In the case of the latter, the business operators get to work as agents while the mobile operators act as hosts.

Other major requirements include passport photographs, Bank Verification Number (BVN), Current Account references, and evidence of business registration (CAC Certificate). Once your application is approved, you will receive the POS machine and you may begin offering your services to customers.

4. Get a Shop or Kiosk

This will serve as the local or nearest financial institution to the people where they can perform simple transactions like withdrawal, payment, bank transfer, etc. Your shop or kiosk should be designed in such a manner that it notifies people you’re running a POS business. You can achieve this with a small board put in front of your shop to alert customers from a far distance who are looking for a POS terminal.

It is very important to consider these defining factors when planning to start a POS business.

Now, with the knowledge of the defining factors laid out, one may be asking about a Business Plan for their POS business. And the answer to this question does not need much. If you recall when reading the article, all you have read is a business plan for your POS business! Just make sure your business is at the right location which has a high demand for money.

Having said all these, there are some beneficial companies and banks which I would recommend to someone planning to start a POS business.

How to Start a POS Business with Access Bank

Starting a POS business with an Access Bank is very beneficial. Like any other bank in recent times, Access Bank on its quest to deepen financial inclusion, make funds available to the under-banked and unbanked. It has also introduced agency banking services centred on mobile money. It then stands that as a mobile money agent; you represent the bank by carrying out services that would have been ordinarily sourced by the bank.

While doing this, you are entitled to a certain commission from the bank and also from the customers. Some requirements to become an Access Bank POS agent include a visible business location that is easily accessible, minimum working capital of 50,000 naira, valid ID card – mainly voter’s card, driver’s license, international passport, national ID card, utility bills, business registration documents for corporate bodies.

Once you meet the requirements, step in to any Access bank branch and fill in the necessary forms.

How to Start a POS Business with Firstbank

The First Bank POS agent business is a way of providing a source for employment to many Nigerians as it curbs unemployment in Nigeria. Many banks will charge you for a POS terminal after meeting the requirements to operate the business.

However, with FirstBank Nigeria, it cost 0 naira to set up your POS business. Once you meet the requirements, the financial institution will give out a free POS terminal for your business, and that’s amazing and hard to find from any other bank in Nigeria.

Some of the requirements include an existing business, a visible and accessible business location, a valid ID card, Biometric Verification Number (BVN), 1-3 months utility bill. Corporate bodies must have their business registration documents.

How to Start a POS Businesss with Opay

To register to become a POS agent for Opay does not take much. In fact, it is very beneficial, said one of my friends. People who are POS agents for Opay are paid daily unlike some other banks e.g. Zenith Bank or monetary Institutions. A way to register is:

  • Log into the OPay app on your device.
  • Choose the merchant application icon.
  • Enter all necessary information as requested.
  • Upload your transaction history for the past 3 months.
  • Upload a valid ID card or Driver’s license.
  • Take a snapshot of your business station and upload it to the portal
  • Submit your OPay POS application for review

The OPay POS is free. However, agents must have a caution fee of 20,000 naira available in their OPay wallets. Immediately, the POS application is approved, the caution fee charge will take effect. This sum will be refunded to the agents when the agent returns the POS terminal.


POS business is a side income that is very lucrative to anyone who starts or who has started this business. The services offered here include:

  • Withdrawing money from any bank account.
  • Opening a bank account
  • Depositing money into any bank account
  • Paying utility bills such as electricity, airtime, water, and so on.

With all these services and benefits of POS business, who would not want to start this business? So to start this business is a good idea and I highly recommend this business to anyone looking to get out of the unemployment group in Nigeria.