Business Idea

Things You Need Before Going Into POS Business In Nigeria

The agent banking or Point of Sale (PoS) system may be one of the highly lucrative small business ideas to implement across the world, but just like any other business it requires some well thought out strategy.

The POS system is one of the most common payment methods which allows customers to pay for goods and services without visiting their banks.

For someone who wishes to start the business and and flourish, there are important aspects to be considered.


Every business requires start-up capital, no matter how small it, you will need money to buy essential equipments.

For a POS business, however, one does not need to break the bank to run a successful outpost as all that is an average of N150,000 to N250,000 including money to cover the cost of the machine.

It also depends on if one wishes to render all services like cash withdrwawal, bill paymen, funds transfer, airtime sales, and purchase of electricity units, (PHCN).

because you will need enough and the customer payments, but if you intend to offer just one service (e.g withdrawal) N150,000 is sufficient.


Getting a stratgic location is very important to having large volume of transactions. An example of strategic location is an area with many individuals looking to engage in financial transactions like marketplaces, malls, food hubs, hospitals etc…

Shop or Stand

As a POS operator, you will need to have a shop, kiosk, or mobile stand where you can position yourself and be easily seen by customers or prospective clients.

There should be enough indication by the appearance of your shop to alert people that you operate a POS business. Some operators use logos and symbols to pass this message, or a sign that boldly reveals you render pos services.

Your shop or kiosk should be constructed in such a way that it alerts visitors that you run a POS business. You may do this by placing a small board in front of your business to warn consumers who are seeking for a POS terminal from a distance.

POS Machine

Most importantly, a Point of Sale business cannot be run if you don’t have the POS machine/device.

To get one, you will have to visit your (commercial) bank to apply, or other fintecg agents. The cost of acquiring the POS machine varies from and it also depends on the relationship between the operator and issuing agent.

However, there are sometimes exceptions for potential operators to pay in instalments if it is difficult to pay all at once, and 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.

According to the CBN, to obtain a POS machine, an applicant needs to have a valid means of identification, (driver’s license, or an international passport). Also, people who have accounts with the banks they visit to request a POS machine have an edge.

As at 2022, there were over 2 million pos operators in Nigeria, and many people go into the business as novice, without any training or clue on how to run it. So in order to ensure that it does not crash shortly after takeoff, here are some guidelines below;

Balance your account daily

If you are too busy and are unable to do crosscheck everything daily, never forget to;

  1. Check If your wallet is completely credited
  2. Check If your employee account is balanced

If you borrowed the money to run this business, make sure you immediately institute a repayment plan the day you collect the loan.

Any person using their personal funds, should as a matter of urgency have a savings, which should not be touched either for personal or family expenses. It will always come in handy in future.

Furthermore, as a business that deals primarily on physical and digital cash, there are bound to be issues that would require an audit, so it is good to always keep withdrawal/deposit receipts.

According to a POS operator named Tope, it is also necessary to have a daily checklist for balancing account.

This refers to a list of the things you need to check/audit.

Below is a sample of how a checklist will appear:


i. Check POS credit from (POS name e.g Monie)

ii. Check POS credit for second POS (POS name e.g Opay POS) This is if you have more than 1 POS

iii. For those who hired staff/assistants. Check employee account if the account is balance

Use this formula


iv. Check if your capital is increasing i.e if the capital is more than what you had the previous day.

Interestingly, one Musa, a PoS operator at Ejigbo, Lagos said he got the money he used to open the PoS business from his other business.

“I run a petty trade in provisions, body creams and all kinds of drinks.”

According to him, in every transaction, he gets five per cent because he bought the Opay machine with his money. Musa added that the percentage a PoS agent realises depends on the location of the business.

“If you are in a place where banks are scarce, you can increase your charges. High charges can drive customers away”, he said.

If the guidelines and instructions are followed with discipline, you are on your way to having a booming POS business.

Meanwhile, here are 10 businesses to start with N100,000 in Nigeria in 2023.