How to start pos business in Nigeria, the requirements

Pos ( point of sales) business in Nigeria, is very lucrative businesses now. When you open it where there is population, you will surely going to make gain from the business.
Pos business is the one anybody can do.
You can do it along side with your existing business or you can start it as the only business.

How pos Works

In a POS business, the client first request transaction like withdrawal, transfer, or bill payment and presents the debit card. Next, the agent selects the type of transaction on the POS terminal device and enters the amounts, then, insert the debit card into the device and ask the client to secretly enter the four-digit pin. Using the network, the General Packet Radio Service (GPRS) connects with the bank’s server to authorize the transaction. When successful, it immediately prints out the receipt.

This process can be repeated for as many customers as you can, as long as you abide by the transaction rules of your host (bank).

Documents required to start pos business

Valid means of identification e.g Driver’s license, National ID card, International passport or voter’s card.
2 passport photographs,
2 current account references,
Evidence of business registration (CAC Certificate). A minimum working capital of N50,000

How and what you need to do to start pos business in Nigeria

Get a shop or space to put container

Geting a shop or a space for your pos bussiness in Nigeria is very important because as a business there must be a place to establish it. Though Pos business in Nigeria doesn’t require large space, a small place can be enough. To enjoy this business of pos make sure your shop is where there is traffic. I mean where there is much people to patronize you.
Where you position your pos business is very important because increase in the number of patronizers means increase in profit. It should be a place that is visible and accessible. Decorate your shop with banners and materials that will be given to you by your pos mobile agents. Make people know what your shop is about.

Get your capital ready for pos business

To do pos business, the capital you need depends on the volume of your customers.
If you have a good number of customers. You will needing not less than #200, 000 for the business. You might need far more than #200, 0000, all depends on the volume of your customers
But one can still do the business with minimum of # 50,000.
Note that the money does not include money for shop.

Now get you pos machine

There are two ways of getting pos machine.
you can get pos from,
Banks or
Agency banks

Getting your pos from bank for me is better, because their charges for withdraw is low and at flat rate, unlike Agency banks.
But for Agency banks, their deposits charges is lower than Banks. Anyway the choice is yours.

And in term of easy of getting, Agency pos is far easy to get.

At this point, let me explain what is pos

POS (point of sale) is also called point of purchase (POP) it is a device that allows local debit cardholders make payment for goods and services mostly in a retail location. Pos machine is a very good automated product because it reduces the stress of carrying cash around, transacting directly with cash etc.  It also gives instant notification/confirmation of goods and services payment. That is why you receive alert whenever you do cash withdrawal or transfer with pos agent. Pos business has its many challenges and  Problems which you must know before going into the business.

POS accepts debit/credit cards the same way ATM does. Buyers of goods can pay directly to a sellers account without using cash.
It is not just for payment only but can be customized for bill payment such as airtime (recharge card printing), DSTV, GOTV,. POS can also be customized to collect School fees, rent, tax, donations etc.


These are what you suppose to do to get pos from bank:

You need to go to bank of your choice, meet the customer’s care department, tell them that you want to be pos agent in their bank. Then you will be directed on what to do.

You will be asked to bring the following:

  1. Two guarantors that have current account in any bank
  2. ID card, such as National identity card, or international passport, or Driver’s license or voter card.

Again you will be given agent form to fill and pos agreement form to read and sign on every page.

After that , bank will do their own investigation about you before opening the agent account for you.

When the agent account is open for you. You will be asked to pay minimum amount of #50,000 into the account.
This money belong to you is not for bank.

When you have paid the money. The bank will send you, your log in details.

Now what you do is to download the agent app for the bank, and login using the login details sent to you.

After login to this agent app, you can start using it to do transactions, like transferring or depositing and withdrawing using one time password called OTP.

You will continue like that pending when the bank will give you pos.

It might take a week or weeks before bank finally give you pos. This depend on number of transactions you do with your agent app daily.

How to get pos from agency bank

To get pos from agency bank, is somehow easier. All you need is accepted ID card, one guarantor, Your two passport, and one passport of your guarantor. Again you will asked to pay #10,000 to #20000.
When you have done these, it will not take two days, they will give you pos, and business started immediately.

Get pos machine with a CBN lincensed ptsp

In case you don’t want to collect the pos machine from bank, or agency bank, you can purchase from Companies who are licensed to sell them. They are registered aggregator with CBN licensed PTSP (issuers of pos terminal in Nigeria. You stand to gain a lot from possessing your own pos machine.


Pos machine varies in prices depending on the agency company you are buying from and the type of point of sales machine in question. The prices of the machines are coming down from what it used to be. We now have some machines that cost #45,000, #65,000, #75,000 etc. The difference here is just like having 2G, 3G and 4G so the higher the money, the better the service.

Bank that offers pos to agents

For me the best in the list are
First bank
Access bank and
Zenith bank.

Though you can try other bank pos. like

FCMB and many others.
Each bank has its own mode of operation you just have to go to them one on one to get details on what is required.
Banks give out the POS machines free. I mean you don’t have to pay anything, however, terms and conditions apply.


Micro Finance bank: some microfinance banks like Fortis Mobile gives out pos machines. But you have to register as agent mobile money company.

INTERSWITCH: Interswitch is instant debit and credit but it does not accept visa cards for now.

There are many mobile money operators example; Quickteller, Paga, Branpos, Pocketmonie, Firstmonie, Opay, Paycentre, Nexgo Pos, citiserve, Accelerex etc. 

The Importance Of POS Business

With a POS business, banks now reach a larger demographic. Also, they offer more flexible and convenient access to existing and new customers. In addition, they ensure the safety of customers and help reduce traveling long distances to have access to banking. Most importantly, it plays a big role in boosting financial inclusion especially to people in rural areas.

Also, the business has provided job opportunities and financial stability by helping the agent make money in the following ways;

Commission; Banks pay agents commission based on the volume of transactions carried out on their behalf.Service Charges; By rendering service to customers, you can also charge them a particular amount especially on bills payments, taxes, and subscriptions.Float; Depending on your cash management policy, you can also make use of cash deposits, net of withdrawal for your primary business.

By operating this business, you are not only increasing your stream of income, but you are also serving the needs of the people in your community.


Rural Communities: you will agree with me that rural communities have less number of banks or financial institutions as such establishing a POS business will be a great success. Many parents that want to send money to their kids for school fees, upkeep and other commitments will gladly embrace this business. Others who travel downtown to carry out financial transaction will be relief.
Places Where ATM are always crowded or in places where there are shortages of banks/ATM post. Human beings are always in a hurry as such not everyone likes queuing up in ATM post if they see alternative they will gladly accept not minding the charges.
I discovered that the business thrives well close to markets and banks. Sometimes bank ATM will show insufficient fund at that time many people who wants to make use of money will rush you.
In your business premises especially if you handle a large amount of money or have a good number of clients.
Read Also:  How To Start Food Storage Business In Nigeria


Do not collect high charges.
Always be available at all cost in your location because if you keep absenting yourself clients will think that you are not serious.
since it involves money you have to position it in a place that is safe. So that hoodlums will not use you shine by robbing you.
Don’t accept large amounts for security reasons except you are well secured because if some bad guys know that you handle large amount, they may strike.


It is more ideal for you to buy your own pos machine than get the free version. When they say free it is not completely free because you will still part with some money to get the pos. It is called mpos so it is not a machine per say but something you can sync into your phone.


To get free pos machine there are many conditions that follows.

You must prove that your business can do a #100,000 transaction every day. It is mostly given to people who are already into or have done agency banking before and live in a high brow traffic areas.
The money you pay for registration #15,000 or more is enough to add more money and buy for yourself. They call it agent registration and it is compulsory.
You are the one to pay transportation fare for physical visitation of your location or the address where terminal will be used. And also for branding materials, courier for the pos delivery. Let’s assume the whole of these cost #20,000. Add this to the registration fee what does that tell you?
It takes 30 days before you get the free mobile pos and you have to sync it into your smart phone before you can transact with it.
As an agent you will not charge extra for utility bill, airtime recharge but only from the commission you charge user
It works independently without smart phone. You get instant value of amount transacted into your wallet. From your wallet you make transfer to your bank.
You get your pos machine within 3 working days after payment.
No target
You earn extra commission on cable TV, utility bills, airtime recharge. Also you earn from the commission you charge users.


  1. Power
  2. Security
  3. Cash
  4. Debited failed withdrawn
    5.Delayed cash deposits
    6.Network failures
  5. Dubious customer
  6. Human errors in transactions
  7. Pos machine malfunctionings
  8. Competition in the business

But all this challenges, if you are serious about the business you will survive.


There is good profit in POS business because it involves rendering many services. With pos you can print and sell recharge cards. Only this one alone provides heavy gain not to talk of when you calculate other services rendered in a day.
The money you make from commissions; banks and cable is enough to make you financially free. The bank charges you receive is not directly from you but your customers. So you have nothing to lose but much to gain. But you have to charge according to bank commission or it should guide your charges.
Assuming you transacted with 40 people a day and your commission is #150 each that will give you #6,000. In a month you would have made #150,000 it could be more. Remember there are other services like recharge card sales, cable and Education voucher sales to make money from.


As said it is lucrative. The demand for all the services is high meaning plenty overturn for you which guarantees a huge profit.
It is not a complex business, the processes involved are straightforward. Meaning the business can be done by anybody.
You would have rendered help to people who spend so much money and time to get to where they can receive such services
The demand for the service is high meaning more money
It is sustainable because the consumption of these services will always be needed
POS business is not yet crowded


It depends on the services you want to be rendering and the kind of pos you want to acquire. If you are getting it from bank you will need from #100,000 and above for transaction. That is outside the shop. But if you are buying from agency company then you need #300,000. So #100,000 can take care of the POS machine while #200,000 will be for money payment for withdrawal. Remember you must have cash in your bank account for transfers.

You can start small then when the demand for your services increase you also increase the capacity of your capital.

For those who collected the machines from banks and are using it for their business transactions such as supermarkets, they have nothing to pay but meet-up with laid down procedures.

Marketability of pos

The business sales itself, create awareness or let people know your business. Next time they will be the ones coming to do business with you.
You can approach institutions, religious bodies, market etc and make a deal with them.

Print fliers and share them around your neighbourhood.


You can start pos business and be making more than #5,000 daily; and up to #200,000 monthly anywhere you are. It is a nice business idea you should think of doing as an entrepreneur. You can do it as a side hustle. With pos you don’t need any software for recharge card printing; rather you will be printing directly

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