If you’ve ever tried withdrawing cash from an ATM only to find it empty, you probably ended up walking to the nearest POS agent. That’s how important POS businesses have become in Nigeria today.
POS stands for Point of Sale, and in Nigeria, it refers to small agents or shop owners who help people carry out quick financial transactions like cash withdrawal, deposits, airtime recharge, and bill payments.
The business is growing rapidly because of the government’s push for a cashless economy, coupled with the fact that many rural or semi-urban areas don’t have enough bank branches or working ATMs.
With as little as ₦50,000–₦100,000, you can start your own POS business in 2025 and begin earning daily profits.
But before you rush, let’s break down the cost of a POS machine in Nigeria, startup requirements, daily earnings, risks, and the best POS providers this year.
Why POS Business is Profitable in Nigeria
The POS business isn’t just trending; it has become a lifeline for millions of Nigerians. Here’s why:
1. Banking Gaps in Nigeria
Nigeria still has a low banking penetration rate compared to its population. According to reports, many Nigerians in rural areas live far from banks or ATMs. POS agents step in to bridge this gap.
2. High Demand
Every day, people need cash withdrawals, deposits, airtime recharge, and even bill payments. Instead of going to banks with long queues, they turn to nearby POS shops.
3. Low Startup Cost
Unlike businesses like restaurants or supermarkets, you can begin POS operations with relatively little capital.
4. Daily Cash Flow
Unlike jobs that pay monthly, POS agents earn every single day. This makes it attractive for people looking for a steady daily income.
5. Flexibility and Scalability
You can run it as a side hustle, employ staff to manage multiple locations, or expand into other services like airtime/data sales.
Simply put, the POS business remains one of the most consistent income sources in Nigeria today.
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Requirements to Start a POS Business in Nigeria
Starting this business requires meeting certain conditions. The good news is that these requirements are not complicated.
Here’s what you’ll need:
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Bank Verification Number (BVN): This is compulsory for KYC.
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Valid means of identification: National ID, voter’s card, driver’s license, or international passport.
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Utility bill: A recent electricity, water, or rent bill to verify your address.
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Startup capital: Minimum ₦50,000–₦100,000 for transactions.
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Business location: A shop, kiosk, or even a simple umbrella stand in a high-traffic area.
Some providers may also ask for passport photographs and a guarantor’s form.
Note: Always choose a visible, secure location. Location determines 80% of your daily income.
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Step-by-Step Guide to Start a POS Business
Now, let’s break it into actionable steps:
Step 1: Choose Between a Bank or Fintech Provider
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Banks like First Bank (FirstMonie), Access Bank (Closa), Zenith Bank, and UBA offer POS services.
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Fintechs like Opay, Moniepoint, and Palmpay are faster and more flexible with approval.
Step 2: Apply for a POS Terminal
Visit the nearest branch or agent center, or fill out an application form online.
Step 3: Submit Requirements
Provide your BVN, ID, passport photo, and utility bill. Banks may request extra forms.
Step 4: Pay for or Collect Your POS Machine
Some fintechs provide POS terminals for free, while others request a caution fee (₦10,000–₦25,000).
Step 5: Fund Your Float
This is your working capital to serve customers. Most providers require ₦50,000–₦100,000 minimum float.
Step 6: Begin Operations
Start serving customers in your location. Always give receipts and maintain customer trust.
Tip: Promote your business by placing a signboard outside and telling people about your services.
Best POS Machines in Nigeria (2025)
Different providers have unique strengths. Here’s a comparison:
| Provider | Charges (per ₦5,000 withdrawal) | Reliability | Ease of Approval | Special Features |
|---|---|---|---|---|
| Opay POS | ₦10 – ₦20 | Very reliable | Fast (3–7 days) | Free machine option, good customer service |
| Moniepoint | ₦6 – ₦20 | Very reliable | Fast (5–10 days) | Known for high uptime, daily settlements |
| Palmpay | ₦10 – ₦20 | Reliable | Moderate approval | Easy app interface, good cashback rewards |
| FirstMonie (First Bank) | ₦10 – ₦20 | Reliable | Slower (1–2 weeks) | Trusted brand, nationwide branches |
| Access Closa | ₦10 – ₦20 | Reliable | Medium speed | Wide agent network, popular brand |
To apply, simply search their official websites or visit their nearest office.
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Cost of Starting a POS Business in Nigeria
Your total startup cost depends on your location and provider. Here’s a breakdown:
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POS terminal fee: ₦0 – ₦25,000.
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Startup float capital: ₦50,000 – ₦100,000.
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Shop/kiosk rent: ₦20,000 – ₦100,000 yearly, depending on your area.
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Signboard + setup costs: ₦10,000 – ₦20,000.
On average, starting a POS business in 2025 costs around ₦100,000 – ₦150,000.
How Much Can You Make from a POS Business?
This is where most people get excited.
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Average charge: ₦100–₦200 per ₦10,000 withdrawal.
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If you process ₦200,000 daily, you earn ₦2,000–₦4,000 daily.
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In busy areas, agents handle ₦500,000+ per day, earning ₦10,000–₦15,000 daily.
That means you can realistically make ₦60,000–₦300,000 per month, depending on your location and transaction volume.
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Challenges of the POS Business in Nigeria
Every business has risks. Common POS business challenges include:
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Network failures that delay or fail transactions.
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Fraud & scams like fake bank alerts and chargebacks.
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Security risks since you handle cash daily.
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Customer disputes over failed or delayed reversals.
To minimize risks, always confirm transactions before releasing cash and avoid late-night operations in unsafe areas.
Tips for Running a Successful POS Business
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Choose a high-traffic location near markets, schools, or bus stops.
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Offer extra services like airtime, data, utility bills, and DSTV subscriptions.
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Maintain a neat shop/kiosk and display your services clearly.
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Always have enough cash and a float balance.
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Build customer trust with politeness and transparency.
To fully acquire, you can also take a Loan for a POS Business in Nigeria
FAQs About POS Business in Nigeria
1. Can I start a POS business without BVN?
No. BVN is mandatory for all providers due to CBN regulations.
2. How much is an Opay POS machine in 2025?
It is usually free but may require a refundable caution fee of about ₦20,000–₦25,000.
3. Which bank is best for POS agents?
First Bank and Access Bank are trusted, but fintechs like Opay and Moniepoint are faster in approval.
4. Is the POS business still profitable in Nigeria?
Yes. The demand is rising, especially as banks reduce ATM cash disbursement.
5. How much capital is needed to start a POS business?
At least ₦100,000 – ₦150,000 (including float, POS terminal, and shop setup).
6. Do I need a shop, or can I use an umbrella stand?
You can use either. What matters most is a busy, visible location.
Conclusion
POS business remains one of the most profitable small businesses in Nigeria in 2025. With low startup capital, daily income opportunities, and a fast-growing market, this is your chance to build a stable source of cash flow.
If you’re serious about getting started, pick one trusted provider and apply today. Thousands of Nigerians are already making money from POS — don’t be left behind.
👉 You can begin by applying directly to the Opay POS official website.
