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Guides On How To Start A POS Business In Nigeria.



POS machine

POS business can be otherwise known as agent banking business. It involves the transfer of funds, withdrawal of funds, sale of recharge cards and bill payments like GoTv, DSTV, Startimes, and NEPA Bill services.

This business is an extension of services offered by financial institutions like banks through which customers get convenience. Therefore the fee you charge customers for this services is called convenience fee.

The central bank of Nigeria in a bit for financial inclusion has thrown open this opportunity. An avenue to create wealth.

Furthermore, this business thrives in areas where they are limited or no banks or ATMs. People will always be in need of money for various needs and will be glad to go to where they can be quickly served at a minimal cost.

Benefits of POS business in Nigeria

Achieve financial inclusion
Reduce the cost to serve
More Account acquisition
Business Opportunity
Create Jobs for the unemployed
Decongest bank branches
Serve a wider range of customers
Make customers happy

Why POS Business in Nigeria is Profitable

This business involves much liquidity, what this means is that you must have readily available cash to give out. Because customers will come more for withdrawals than fund transfers. The services you will be offering includes;

  • Withdrawals
  • Fund Transfers
  • Bill payments
  • Sale of Recharge cards or Top up to all networks without buying vouchers and
  • Most likely Account Opening
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Apart from Recharge which is free from charge other services are chargeable. But make sure you don’t overcharge you could be competing with other owners of POS machines or breed competition in future.

Once you are in a strategic location where they are limited or no ATMs around, customers will prefer coming to you for quick services.

Proposed Fees and Commission Structure for Firstmonie Agent Transactions

Transaction Amount Band Fee paid by Customer Commission to the Agent
(% of Fee)
1 Deposit (own FirstBank A/C)
1- 5,000 N50 45%

  • 5,000-30,000 N100 45%
    30,000-100,000 N150 45%
    100,000 N200 45%
    2 Transfer to FirstBank
    1- 30,000 N100 45%
    30,000-100,000 N150 45%
    100,000 N200 45%
    3 Transfer to Other Banks
    1-20,000 N100 45%
    20,000-100,000 N200 45%
    100,000 N250 45%
    4 Cash Withdrawal
    1-10,000 N100 45%
    10,000-100,000 N200 45%
    100,000 N300 45%
    5 Bill Payment N100 45%
    6 Airtime Recharge Free 2% of Amount
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Steps to start POS Business in Nigeria

  • Get a viable location
  • Be tech savvy
  • Get a reliable host
  • Request for your POS Machine
  • Make up banners and advertise your business
  • Open other locations and expand.
  • How to set up a POS business in Nigeria


You can start POS business by getting a host. A host is a financial institution through which you extend their services to your customers. Good hosts include;

First Bank


Your location is very strategic to your success in this business. A location where they are limited or no ATMs or Financial institutions like Banks will do. Apart from that, they should be enough room to contain your customers, a furniture divider between you and your customers. Create a place where customers will feel free to carry out transactions.

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Get a POS Machine:

Most of your customers will come to make withdrawals, so a POS machine is really important. A new POS machine goes for N85,000 – N100,000 only. First Bank offers free POS machines you just need to meet their requirements. To get one visit any First Bank Branch closest to you and make more inquiries about Agent Banking.

Get Banners

For a business to be known you need to create awareness, you won’t sell anything if people don’t the goods or services you offer. Go get a well-designed banner.

If you find this information helpful, or you need any assistance from our team, you can use the comment section to let us know.

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