How to Start a POS Business in Nigeria – 5 Easy Steps!


You’ve been searching online how you can start a POS Business in Nigeria or how you can become a GTbank, First Bank, and other financial institution’s POS agent.

You wonder why a lot of people are into this business these days. If you can count the kiosks or shops of those into this POS business in your street, you’ll be surprised. But why?

 It’s simply because the business is lucrative. I know you’re aware of that, that’s why you want to learn how to start a POS Business in Nigeria, right?

I will show you the easy step-by-step guide to start a successful POS business in your location and even, expand your business.

You see, despite the economic situation of the country, people still find a way to make good money. It could be online, or even offline. The question is, are you willing to use the information at your disposal to create money-making opportunities for yourself?

We live in an information-driven era. And this, if well utilized, is guaranteed to make you good money. Let’s cut to the chase and get into the information I have for you today. And that is how you can start and run a profitable POS business in Nigeria.

A Brief Overview of POS Business in Nigeria

For reference purposes, POS is an acronym for Point On Sale. But why is it becoming more rampant like a pandemic in Nigeria?

Well, with the ever-growing economy and advancement in technology, we need to go cashless and be able to transact (especially, to make a payment) with or without queueing in the Banking Hall. 

POS devices could be found across stores, shopping malls, and even small businesses. This created an avenue where buyers and sellers could transact and make payments without having to carry bulky cash around.

In a bid to make financial services reach places with no banks, the Central Bank of Nigeria in its wisdom introduced Agency Banking. 

So far, I think the CBN is achieving its aim. But at the same time, it’s also empowering young Nigerians. This adoption of Agency banking or POS service has become a lucrative and profitable business if, and only if, you do the right things which I’ll be showing you in a moment.

So, if you’re ready to get empowered, kindly take out time and follow every bit of information I’ll be sharing below. But before we head into the nitty-gritty of today’s post, here are the prerequisites for this business:

Requirements to Start a POS Business in Nigeria

  • Good or People-focused location
  • Business space (kiosk, store, or shop)
  • POS Machine (details below)
  • Patience:

Now, let’s get to it!

How to Start a Profitable POS Business in Nigeria

  • Get Your Your Capital

Of course, this is the first thing (after your business plan).

But how much does it cost to start a POS business?

To start a POS business in Nigeria, you should have a budget of 50,000 Naira to 300,000 Naira.

To be honest, this business is not capital intensive. It all depends on how you choose to start up. Ideally, you should be aiming at N50k to N300k. In essence, just a minimum of fifty thousand nairas could secure what you need to excel in this business. 

You will need to get the machine, get a kiosk, or rent a shop and make small furniture for your convenience. But just as many other people who are into this business, you can start with a kiosk, and later you can upgrade to a shop.

In certain areas of the country, housing is usually expensive. That’s why I advised earlier to be close to a commercial environment as the accommodation is less expensive. 

In fact, I know people who started with just their machine, a chair, a table, and an umbrella (some sat under a tree). That’s cool and it’s good especially for starters who are low on cash.

After getting your capital, the second thing is to register your business name.

  • Register Your Business Name

This is very important if you want to run a successful POS business in Nigeria. You need to register your business name to prove how serious and legit you are.

I won’t go deeper into this because I have a blog post explaining how to do this.

(Click here to learn how to register your business name in Nigeria)

The next thing is to get the machine!

  • Get the POS Machine

Contrary to what you’ve heard, getting a POS machine in Nigeria for your business is pretty easy once you’re able to fulfill certain requirements. 

How to get a POS machine in Nigeria

There are two ways to get this POS machine in Nigeria. The first way is through the commercial banks and the second way is through the dealers. You can choose any. It all depends on your preference.

But if you’re able to get from the bank directly, that will be great! But you need to prepare some kinds of stuff to be eligible;

Requirements to Get a POS Machine in Nigeria

Here are what you’ll be needing:

  • An account with the bank (current account preferably)
  • Recent passport photograph
  • A business location
  • A registered business name
  • Utility bill
  • Guarantor s) with a current account (usually two)

You can get the POS machine from some of the popular commercial banks in the country. Requirements may vary slightly from bank to bank. 

Some may require any form of account (e.g. GT Bank), some banks may require you have an account that’s 6 months old or higher while some may need less. After application, certain banks will give out the machine within 14 days. It may be more, or less, for others.

To get your machine for the POS business in Nigeria, you can simply walk into the bank and ask customer care for the procedure.

Banks that Gives POS Machine in Nigeria

But how much is it to get a POS machine from banks?

Don’t be scammed, getting a POS machine from commercial banks in Nigeria is free but there’s a caveat! Although it’s free, you still get to remit a certain percentage per transaction to the bank. It’s usually between 1.5% to 2.5% per transaction for life and varies across different banks. 

First Bank has the least charges so we highly recommend that.

For dealers, I can’t name any reputable brand here but you can carry out a personal assessment of dealers in your location. You have to meet the criteria of a dealer, then pay a one-time fee before you get your device. The price starts at N45K but could rise to N200K depending on the specifications of the device you’re getting. 

The machines run usually on Android. It could be a touchscreen or button. Battery capacity also varies just as you have with conventional smartphones. 

Another factor that influences the price is the network specification: we’ve got 2G, 3G, and 4G. The more advanced, the more expensive the device.

And just to wrap this up, make sure your carrier (provider) is Quickteller especially as a beginner. 

The next is to get the location for your business.

  • Getting the Ideal Location

Please take this part very seriously. If you get this part right, you’ve gotten a good head start. And this will determine if your business soars to great heights, or falls by the wayside. 

In essence, your location as an Agency Banker or someone engaged in POS business in Nigeria is directly proportional to how much profit you can make.

Now when choosing your location, bear these three things in mind.

  • The proximity of the location to commercial centers or market places.
  • Proximity to banks.
  • Population density

I’ll explain it.

  • Factor 1 to choose a location for your POS Business

How close should your location be to a bank? 

Not close at all! You are supposed to serve as a replacement (to an extent) to banks. And having a location close to a commercial bank defeats the purpose of your business. It also determines how much you can charge for transactions. 

If you can visit the nearest bank in your location by walking down, then you need to extend the distance or change your location.

  • Factor 2 to choose a location for your POS Business

The next factor to keep in mind is how close you are to commercial centers. Just so you know, on average, an Agency Banker is at an advantage when he/she is domiciled in a commercial environment. 

If you can, try to aim for this first. This should be your ideal location but it’s hard to come by. But if you can pull this off, and remain committed and consistent, congratulations, you’ve already succeeded. 

  • Factor 3 to choose a location for your POS Business

This final part ties the two factors above together. 

A quick question

Should you choose a location with 500 people living and doing business or a location with 2000 people living and doing business? 

ANS: If you can, and if the opportunity presents itself, assuming factors 1 or 2 are met, then combine them.

Okay, here are places I’ll recommend;

  • Hot selling locations for POS Business in Nigeria

  1. A rural area or village
  2. A community or street very far to the bank
  3. In or very close to the market area
  4. Very close to supermarkets or shopping malls
  5. Very close to big restaurants 
  6. Very close to the bank which is the only one in the whole town.

5. Create Awareness and finally Expand Your Business

You don’t need to start doing jingles on the radio or making posters. All you need is a banner like you use to see. The banner will not cost more than N5,000

Now, If you’ve been making some profits, you can get another location and find a salesgirl to help you handle the place. That’s what most people I personally know are doing.

Aside from starting the POS business in different locations, you can add other related businesses such as selling recharge cards, data, VTU, etc., this will really help you build a solid business.

(Check here for other business ideas in Nigeria)

Just in case you’re interested in the recharge card selling, why can’t you learn how to print it yourself? Sounds cool, right?

Okay, click here to learn how to start a recharge card printing business in Nigeria.

That’s all!

CONCLUSION: How to Start a POS Business in Nigeria

Just in case you have any questions, you can use the comment box below and I will be very glad to answer your question to the best of my knowledge.

Do you really enjoy this blog post? If yes, kindly help me share with your friends to enjoy also and maybe buy me a bottle of malta Guinness ?

So, that’s how to start a POS business in Nigeria. 

NOTE: Do not copy my contents and use them without my permission to avoid trouble, read, and digest.

Stephen Gbolagade
Stephen Gbolagade
Stephen is a Frontend engineer, technical writer, owner and part-time blogger here at Gbolamedia, incoming data scientist, an enthusiastic cynophilist, and a curious introvert. Stephen is currently available for full-time, part-time or contract-base role. Contact him here: on WhatsApp or check him on Linkedin


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