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Starting A POS Business in Nigeria And Basic Things You Need To Have(2021 Complete Guide)

POS business is a legitimate way to make money in Nigeria. It’s more profitable in areas with no banks and places where ATMs are not enough to serve the financial needs of the community. 

POS (Point of Sale) business offers services like funds transfer and withdrawal, sales of airtime, bill payments like GOTV, DSTV, Startimes, PHCN, and other utility bills. 

It is used in several places where goods and services are sold. places like retail shops, offices, supermarkets, fuel/gas stations. Are you looking to start a POS business in your locality? This article contains all the information you need to fully startup as a bank agent.

Steps on how to start a POS business in Nigeria and the basic things you need to get started

  1. Have An Existing Business

The POS business has to do with finance and must, therefore, be approached carefully. Besides, the Central Bank of Nigeria is very particular about the business entities that qualify to be agents. So, extra care is taken by commercial banks before they authorise an agent for their retail banking.

To be eligible, you must have an existing business in operation at least for 12 months. You also must have a shop or an office from which you operate. Then, you must have been registered with the Corporate Affairs Commission as any of the following entities;

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

As long as you have any of the above requirements, doing a POS business or serving as a bank agent is possible.

  1. Approach A Bank

Almost all Nigerian banks allow agent banking services. As soon as you decide on the bank to go with, the next step is to approach the bank and get the details of what is required. Again, you must have an account for a direct deposit for the business and provide some documents as part of the requirements for the proposal.

Some of the required documents include;

Valid means of identification e.g Driver’s license, National ID card, International passport or voter’s card.


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

A minimum working capital of N50,00

  1. Get The Equipment

Once your application to the bank is approved, the bank will supply the needed tools and equipment for the business. Apart from the mobile phone, the following materials are usually supplied by the bank:

Point of Sale Terminal; a portable device that facilitates payments of goods and services at bank agent locations using payment cards.

Card reader

Barcode scanner to scan bills for bill payment transactions

Personal identification number (PIN). 

  1. Location

 To thrive in the business, it’s important to choose a location with limited banks or places with few ATMs. Also, choose strategic locations like the bus stop, public market, event centres, etc. All of these factors will have much effect on your daily profit.

Once you have a good location, either construct a shed or shop but create enough spaces for swift movement for you and the customers. Have a banner displayed at the entrance to show the retail banking services you offer.

And for security measures, you can have a special purse/pouch around your neck or a safe with a strong lock to prevent theft and burglary.

  1. Render Services

The business is rendered through the use of POS terminals, card readers, mobile phones, and bank linked mobile wallets for real-time transaction processing.

Once you have these, the next step is to start providing the following services;

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

Frequently asked questions

Is POS business profitable in Nigeria?

It’s very profitable. I mean very profitable. POS business is a legitimate way to make money in Nigeria. It’s more profitable in communities with no banks and places where ATMs are not enough to serve the financial needs of the community. … It is a profitable business and one of the best means of getting passive income. POS business is a very lucrative business and as such, you can’t run at a loss unless you misappropriate your capital. It’s a business that can guarantee you 3k to 10k daily depending on your location.

How do you make money from POS business?

Do not collect high charges. You can put #200 for a ten thousand Naira transaction that is 2% on every monetary transaction. Always be available at all costs in your location because if you keep absenting yourself clients will think that you are not serious.

since it involves money you have to position it in a safe place. So that hoodlums will not attack and rob you.

Don’t accept large amounts for security reasons except you are well secured because if some bad guys know that you handle a large amount, they may strike.

How much does it cost to start a POS business in Nigeria?

In terms of services, the more services you intend to provide and render, the more investment you’ll need to make. For instance; you can start a pos business with just ₦50,000 – ₦100,000 if you only focus on withdrawal services. … With just your pos machine and cash at hand, you’re set to do an exploit beyond your imagination. The cost of a new POS machine is between N85,000 and N100,000 only. Some banks like First Bank offers free POS machines but you need to meet their requirements. You will also need to collect the POS document from your account officer or the nearest branch of the bank.

What are the best POS agents in Nigeria?

  • UBA POS Machine

Uba is a large and popular commercial bank in Nigeria and Africa as well, they offer a point of sales machine at merchant locations to serve their customer better. 

  • First Monie POS Machine

First Monie sponsored by First Bank of Nigeria. They are the number one trusted commercial bank in Nigeria with a high volume of customers. 

  • Kudi POS Machine

Kudi is a financial service provider that focuses on providing an electronics banking experience for everyone. With Kudi, You can become an agent and make money by providing financial services to your communities easily. 

  • OPay POS Machine

OPay is a mobile money agent owned by opera mini, a Chinese company that also owned opera news. Opal is now known as one of the best mobile money apps in Nigeria.

  • Flutterwave POS Machine

Flutterwave is one of the best POS agents in Nigeria with a high commission rate. Flutterwave POS app is an Android POS machine that is used by an agent to provide financial service to the community.

  • Moniepoint POS Machine

Moniepoint is one of the best mobile money agents with reliable, fast and profitable free POS machine in Nigeria.

Content created and supplied by: Temermer (via Opera News )

DSTV Nigeria PHCN Point of Sale


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