How to start a POS business in Nigeria - Startuppreneur

How to start a POS business in Nigeria

POS was not in many Nigerian dictionary until 2013 when central bank gave a go ahead to Nigeria Bank. Before that receiving and sending money was a problem for people especially those living in the rural area, before they could send or recieve money they will have to travel a far distance usually to the city near them.

After the go ahead from the government there was a jubilation from the rural community but there was a problem, for POS to function it need businessman that will serve as POS agent.


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Many take the call and keep smiling to bank till today.


If you are ready to make life easy for your community by allowing them to make transaction without wasting time on que which is typical of the bank, you will also smile to bank.

Below is your guide to starting POS business in Nigeria.


Before starting any business location matters a lot you will want to choose location that have less bank or no bank at all if you want to make profit with POS business.

Have a shop ready

One of the criteria listed by central bank to commercial bank before they can allow anybody or firm to become their agent is to have existing business that have been running for at least 12 month.


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But I don’t have a business?

There is no need to worry, recently the criteria has been lower down but you need to have shop/place ready and registered with CAC (Cooperate Affairs Commission) before bank will aceot you as their agent.

But some are doing the business without having CAC or any of the criteria above?

Yes, you are right. But, since this is business you will like to do for long period of time you need to meet all this criteria to avoid future problem.

Approach A Bank

Approaching bank for POS agent is not as hard as before, many bank will gladly registered you once you have all the necessary documents required by Central bank of Nigeria.

Below are the document you must go with when going to bank.

National ID card/ voters card


Business registration certificate

2 passport photographs

Credit Bureau Report

Working capital of noting leas than #50,000

Tax identification Number (TIN)


When POS started you don’t need to buy equipment it will be given by bank, but now you need to buy some equipment such as:
POS erminal.

This is called Point of Sale Terminal. It facilitate all the financial transaction you will be carrying out

Card reader

Barcode scanner.

Start working

The next in line is to start rendering services to your customer. Some of the services you can render as a POS agent are written below.

Cash withdrawal and deposits

Utility payment

Issuance of mini account statement

Balance inquiry

Fund disbursement

Money transfer.

How POS business work

Pos business is not a rocket science, when customers request to make transaction, the first thing is to ask for the type of transaction.

After that their card should be collected and put into the card reader, a prompt that request customer secret will be display.

Once you authorise the transaction a signal will be send to your bank.

How to make money with pos business

If your location is good there are various way with which to earn from POS business in Nigeria among them are

Transaction fee

On every transaction amount a fee charged. For instance if a person withdrawn #1000 the transaction fee will be between #50 to #100.


Apart from transaction fee bank will pay you commission depending on the volume of transaction you carried out.


Since yoyibare dealing with money, all eye will be on you so you need to take care of your security well. Your money should always be with you.

Deposit your money to bank as early as possible and if you suspect unscrupulous activities quickly move away from there orl report to the nearest police station.


POS business is money spinning venture, If you follow all the steps it won’t be long before you start smiling to bank.

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