How to Start Profitable PoS Business in Nigeria: Five Steps Every New Agent Must Follow
- Starting a Point-of-Sale (PoS) business is one of the most lucrative ventures Nigerians can undertake
- Recent data shows an explosion in PoS business as Nigerians continue to rely on cash withdrawals and deposits
- Starting a PoS business has become easier as the government deepens financial inclusion
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The PoS sector has become one of Nigeria’s most accessible entry points for small entrepreneurs.
With rising demand for quick deposits, cash withdrawals and bill payments, more people rely on PoS agents for daily transactions.
Source: Getty Images
Starting this business is not complex when you understand the key requirements. These five steps break the process down in a clear, practical way.
PoS transaction explodes in Nigeria
According to recent data, PoS transactions in Nigeria saw a 209% YoY surge, driven by increased accessibility, better infrastructure, and a shift from cash, with figures showing over 8.36 million registered terminals by March 2025.
Though the trend saw a dip in October 2025 with a reported 19.92% fall from September, according to NIBSS and Punch data.
Key players like Opay and Moniepoint led this digital transformation, supported by CBN policies encouraging cashless systems, even as new rules emerged in 2025 to tighten security and define agent operations.
Step one: Understand your market, pick a good location
Before anything else, you need to study your area. Look for communities or busy streets where banks are far away or ATMs fail often.
Motor parks, school areas, markets and residential estates usually attract steady traffic.
A good location determines how fast your PoS business grows because it places you where people already need your service.
Once you find the right spot, make sure it is safe, visible and easy to access.
Step two: Choose a reliable bank or fintech provider
The next step is to decide which institution you want to work with. Nigeria has many options including banks, mobile money operators and licensed fintech firms.
Your choice should depend on factors like transaction charges, device cost, customer support and settlement speed.
A provider that settles transactions quickly will help you avoid customer disputes.
Take your time to compare each option so you pick the one that gives you fair fees and stable network performance.
Step three: Register your business, complete KYC requirements
Even though a PoS business is easy to start, you still need basic registration so you appear credible to your provider and customers.
Many operators register a simple business name with the Corporate Affairs Commission (CAC).
After this, your provider will ask for KYC documents such as an ID card, proof of address and a passport photo.
Proper documentation protects you from sudden account freezes and helps build trust with customers.
Recall that Legit.ng earlier reported that the CAC issued January 1, 2026, as the deadline for PoS operators to register their businesses or shutdown operations.
The agency also threatened to place fintech firms such as Opay, Palmpay and Moniepoint on a watchlist for enabling unregistered PoS operators.
The CAC said that it will report the firms to the Central Bank of Nigeria (CAC) for infractions.
Step four: Acquire your PoS terminal and set up your operations
Once your registration is complete, you can apply for a PoS terminal. Some providers give it for free while others charge a refundable fee.
After you receive the device, learn how it works, understand the dashboard and test transactions before opening your shop.
You also need working tools like a notebook for transaction records, stable internet, a power bank and a small signboard that attracts walk-in customers.
Step Five: Manage your cash flow, build customer trust
Cash management is the backbone of a PoS business. You need enough float for deposits and enough cash for withdrawals.
Build relationships with nearby traders or businesses that can exchange cash with you when needed.
Treat every customer with respect, resolve issues calmly and keep accurate records. Your reputation will determine whether people return or recommend you to others.
Source: Getty Images
Starting a PoS business is straightforward when you approach it with planning and discipline.
These steps help you avoid common mistakes and position you for steady growth in a competitive market.
PoS operators to raise charges
Legit.ng earlier reported that Mobile Money Operators (MNOs) such as Opay, Palmpay, Moniepoint, and others have announced an increase in SMS alert fees, starting June 1, 2025.
The financial technology companies disclosed that the move was due to the 50% increase in tariffs by telecommunication companies.
A message from one of the fintech firms, Palmpay, said the new charges began on Sunday, June 1, 2025.
Source: Legit.ng
