Business Idea

How To Start POS Business In Nigeria

The Central Bank of Nigeria (CBN) introduced the Agent Banking system in 2013, which is commonly known today as Point of Sale (PoS) system and since then it has become a go-to medium for numerous financial transactions.

A POS business primarily facilitates transactions in retail sales and the services offered include funds transfer, and withdrawal, airtime sales, bill payments for satelite TV providers like DSTV, GOTV, Startimes, as well as purchase of electricity units, (PHCN), and other utility bills.

Outlets can be found in every corner of the country particularly in places where goods and services are sold/rendered such as; markets, shopping centres, fuel/gas station, restaurants, offices, pharmacies etc.

It is important to note that a PoS agent is not an employee of the bank, but is an independent contractor with a service provider, which is usually a bank or financial technology firm.

Operating a POS terminal is a legitimate and profitable business people can start with little capital in Nigeria. To start one, there are factors to be considered to ensure the smooth kickoff and operation of the business.

Below are some things to consider before going into POS business


Finding a strategic location is one of the most important aspect of running a POS business. So it will be more lucrative in communities and areas with no banks or where Automatic Teller Machines (ATMs) are not sufficient to meet the financial needs of residents.

You should also get places where there is good network, to prevent frequent glitches with the electronic transactions.

Excellent Service

To have regular customers, a POS operator must set out to deliver excellent and efficient service, with particular reference to how you treat people when they come for any form of transaction.

Having a functioning POS machine with good service cannot be overemphasized as one with poor service can lessen your profit in the business per day.

Things You Need To Go Into Pos Business

There are steps and facts one needs to familiarize themselves with before they can start a POS Business.

The first is to have an existing business, however, if one does not have a business, there is no need to fret as it can be created and registered with the Corporate Affairs Commission (CAC).

For those who have existing business, it should have been in operation at least for 12 months, and there is a need to secure a shop or stand from which you operate. That must come after you must have been registered with the CAC 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.

If you do not have a registered business or company, to do so, there are valid documents one is expected to have.

They are as follows;

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

A unique business name which is not already in use.

To become a POS operator certified to commence transactions, you would need to apply to a bank, and it is a good thing that all banks in Nigeria render agent banking services. So, as soon as you decide on the bank of your choice, get the details of their requirement.

To get a POS machine/device, there are numerous banks to approach like Access, Ecobank, Fidelity, First bank, Guaranty Trust Bank, UBA, Zenith Bank, just to mention a few.

Aside from banks, there are other mobile operators to get POS machines from namely; Opay, Moniepoint, Paga, Quick teller, Pocket monie, citiserve, BranPOS, etc.


Since POS business deals in financial transactions which involves using actually cash, getting startup capital is also a key aspect to be covered.

The amount required to Start a POS business ranges between N100,000 to N250,000 because you will need enough money to cover the cost of the machine and the customer payments, but if you intend to offer just one service (e.g withdrawal) N150,000 is sufficient.

With a good location, you can take home between N6,000 to 12,000 daily and at the end of the month, make as much as N180,000 to N360,000 which covers the capital used to start the business.

Some banks and fintech companies give POS machines to merchants free of charge but there are criteria that must be met before one can be eligible.

As the business grows, it is advisable to increase cash at hand as it will lead to more profit. Also, if your money keeps getting exhausted when customers visit to withdraw from you, it would most likely discourage them and they will go to another agent.

There are different popular mobile operators that most POS agents use when starting, but to have an idea on how to navigate through them, below are things to know if you want to start with one of the operators e.g Moniepoint POS.

Transactions You Can Perform;

Cash withdrawal

Fund Transfer

Airtime Purchase

Payment of Utility Bills

How To Become a Moniepoint POS Agent.

Visit Moniepoint’s official website.

Fill out the registration form for Moniepoint agents and submit it.

Make sure your email address and phone number are confirmed, and an agent will reach out to you after 48 hours of registration

The Agent would provide you with information on what to do next, after which they would confirm you as an agent

You can now log in to your Moniepoint POS dashboard to manage your account.

Requirements To Become a Moniepoint POS Agent;

Business registration certificate.

Your BVN

Utility bill

Your bank account Number

Verifiable identity card: National ID, Voters card, Int’l passport, etc.

POS business is one of the fastest growing small scale businesses in Nigeria that promises good returns with low capital. It can also be done on ones area of residence so long as the above mentioned factors have been accounted for, to make it run seamlessly.

Check out 10 businesses you can start with N100,000 in Nigeria in 2023