How To Start POS Business In Nigeria 2021


POS business is one of the most lucrative low capital businesses to start in Nigeria. In this article, I will guide you through on how to start a pos business in Nigeria.

If you are in Nigeria, you already know the business is one of the top trending businesses to start. It won’t be a surprise if you are already familiar with terms like FirstMonie, UBA Moni, Opay, Quickteller etc.

What Is The Meaning Of POS?

POS is an acronym for “point of sale”. It is normally used to refer to an electronic device used for accepting or making payment for goods and services.

See the image below showing a modern OPay POS machine.

In Nigeria today, companies like Opay, Quickteller, Moniepoint and so on, use this device to operate agency banking in partnership with individuals and businesses.

It is called agent banking because, it serves as an extension or furtherance of banking duties. The business covers the functions of financial institutions which include; account opening, money transfer, deposits, and withdrawal. It stretches further to telecommunications and utilities services such as, airtime, light bill payments, data, Gotv, DSTV subscriptions, and lots more.

Agent banking thrives well in areas and locations with few presence of banks and ATMs. Although, it is also very promising in commercial areas where banks are usually crowded and lots of financial activities going on.

Requirements For Setting Up POS Business In Nigeria Today

It is important to make good research and go for training for any business you wish to venture into. Although, agent banking is such that requires little or no training to start up. However, if you need to go for one, please do.
Here are things needed to start up agent banking business.

Good Location

Every business is largely affected by its location. POS business is one that requires a very calculated location.

For your returns to be steady, you need to consider a location for your business before starting up.

Like I earlier pointed out, rural areas, semi urban areas and commercial areas are the hot zones for this business.

Ensure that when setting up your business, it should be somewhere with few banks available and places where there are commercial activities going on. This is to enable you make more meaningful transactions daily.

Also, consider setting up your pos business in school(tertiary) areas, where students are usually in need of cash, data, airtime and what have you.


Most pos outlets are usually kiosks. This doesn’t mean you shouldn’t get an office if you need to.

In fact, having an office is better and of more benefit. You might wonder why. Having an office, allows you to checkmate unnecessary loses.

It gives costumers the sense of comfort and trust. It allows you think of expansion and makes way for other business like consultation, training of staff etc.

However, don’t be discouraged if you can only afford a kiosk. More over, “journey of a thousand miles begins with a step”. Get a well built and protected kiosk which will serve as point of contact with your costumers.

A flashy and beautiful co lor is usually advised so as to allow people see you from afar. Also, let there be an inscription of “pos” on the sides.

Get at least two POS machines. One machine is not enough. This is due to network failure. When the network of one fails, you will switch to the other to avoid losing costumers.

This machine comes in sizes. Some are very small like the size of a small calculator.

You can also get these machines from banks and/or other companies at a cheap rate. This companies include Opay, paga, kudi, quickteller, branpos, pocketmoni, citiserve, paycenter etc.


The amount required to start up a pos business in Nigeria varies. It depends on what you can afford and also the location where your business is sited.

You hear people say, #50,000 is enough to start up a business. The truth is that that amount is very little, unless you don’t mean business.

I didn’t say this to scare you but to prepare your mind. Let’s assume a costumer wants to make a transaction of #100,000 what do you do? I advice, that you at least start with #150, 000 and more if you can.

Know also, that you need to have cash at hand and some other money in your pos account/wallet in case of transfers and payments of bills.

Agent banking services is all about money. Exchange of money services. Therefore, you need money in order to do well in the business.

Please know that your cash for business transactions is different from other expenses you are making.

Record Book

A lot of businesses undermine the usefulness of a record book. Please in your POS business, don’t take record keeping for granted.

It is very important to take down the names, contacts, amounts and bank of costumers in case there is need to rectify or trace some transactions.

Bank requirements for getting bank pos machine:
1. Business name
2. CAC cert
3. Bvn
4. An existing or new account with the bank
5. A valid means of identification
6. Two accounts referee
7. Certificate of association.

In Summary

Have you been searching online for how to start POS business in Nigeria?

This guide was developed just for you. I hope you find the information here quite helpful.

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