How To Make Profit In POS Business In Nigeria

How To Make Profit In POS Business In Nigeria | This article contain how to make profit in POS and POS Business In Nigeria, If you are operating a POS Business or you want venture into POS Business, then you are lucky, After reading this page you will know all about POS Business In Nigeria. Carefully Read Through.

Do you want to make profit in your POS Business or You want to start a POS Business? If Yes, this page is for you, First understand the following:

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What is POS?

POS (Point of Sale) business offers services like funds transfer and withdrawal, sales of airtime, bill payments like GOTV, DSTV, Startimes, PHCN, and other utility bills. and it is used in several places where goods and services are sold/rendered; places like retail shops, offices, supermarkets, fuel/gas stations, pharmacies, eateries, etc.

What is POS business operator called? – Agent banking

POS Business

Basically, the POS business also known as agent banking began in 2013, after the Central Bank of Nigeria released its guideline on the operations and management of the business. Since then, it has remained one of the retail channels of several commercial banks to make their banking services reach a large number of people.

A banking agent owns and operates a retail outlet. He/she conducts the financial transaction and allows clients to deposit, withdraw, transfer funds, pay bills, recharge airtime, inquire customer’s account balance, and other related services.

How To Make Profit In POS Business In Nigeria:


  • POS Business profitable in communities with no banks and places where ATMs are not enough to serve the financial needs of the community.
  • Creating easy access for financial transactions in different localities, the POS business has given individuals and business owners additional means of income.
  • Look for a places where goods and services are sold/rendered; places like retail shops, offices, supermarkets, fuel/gas stations, pharmacies, eateries, etc.

Good Service:

  • The Central Bank of Nigeria is very particular about the business entities that qualify to be agents.  POS business has to do with finance and must, therefore, be approached carefully
  • You must have a shop or office from which you operate and let your customer familiar your sincerity.
  • Extra care is taken by commercial banks before they authorise an agent for their retail banking. So operate with good manner.
  • Etc

Amount Needed To Start a POS Business:

If you have an existing small business that brings in cash on a daily basis, you can diversify your revenue streams by venturing into the POS business. However, the amount Needed To Start a POS Business in Nigeria should be around ₦250,000 at least. If you intend to offer just one service (e.g withdrawal) ₦150,000 will do.

Note that you’ll need some cash at hand to make the withdraws possible. Also, prices of starting are subject to change on your location.

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 the bank you will need from ₦100,000 and above for transaction. That is outside the shop. But if you are buying from an 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.

How To Start a POS Business:

Step 1: To start a POS business you must have an existing business in operation at least for a period of 12 months. Also, you must have a shop or office from which you operate. Then, you must have been registered with the Corporate Affairs Commission as any of the following entities; Company/Business Registration Website

  • Limited Liability Company
  • Sole Proprietorship
  • Partnership
  • Cooperative Societies
  • Public Entities
  • Trusts or any other entity aside faith-based or NGOs.

Step 2: Approach A Bank: All Nigerian banks allow agent banking services. So, as soon as you decide on the bank of your choice, get the details of their requirement.

Some of the required documents include;

  • Valid means of identification e.g Driver’s license, National ID card, International passport or voter’s card.
  • BVN
  • 2 passport photographs
  • 2 current account references
  • Evidence of business registration (CAC Certificate)
  • Tax Identification Number (TIN)
  • Memorandum and Article of Association.
  • Credit Bureau Report
  • A minimum working capital of N50,000

Step 3: Location: a good location is important in every business,  Location plays an advanced role here. If you can get your location spot on in this pos business your success is 50% done already. I can tell you that it has special benefits that ensure you’ll be successful.

Step 4: Get The POS Machine:

They’re three ways you can probably acquire a pos machine.

  • Banks
  • Agency banks.
  • Or contact me directly

Consideration while getting a pos machine.

  • Good network/service
  • Check their transaction charges:

some pos charges 0.65% plus ₦10 for any transaction below ₦10,000. And they charge ₦50 for any transaction above ₦10,000. Meanwhile, there are others that only charge ₦10 for any type of transaction. Whether you’re sending or receiving the service charge doesn’t change.

Requirements to get POS Machine:

  • You must have a current, savings or corporate account with the bank.
  • Account number
  • Phone number(s)
  • Business email address
  • etc

Below are some of the banks you can reach out to for pos machine to start your pos business in Nigeria

  • Guaranty Trust Bank
  • UBA
  • Zenith Bank,
  • First Bank,
  • Access Bank,
  • Ecobank,
  • Skye Bank,
  • Fidelity
  • Diamond bank
  • Polaris bank
  • etc

Other mobile money operators to get POS machine example are:

  • Quickteller,
  • Paga
  • Branpos
  • Pocketmonie
  • Firstmonie
  • Opay
  • Paycentre
  • Nexgo Pos
  • citiserve
  • etc

Step 5: Render Services

The business is rendered through the use of POS terminals, card readers, mobile phones, and bank linked mobile wallets for real-time transaction processing.

As soon as you have these, the next step is to start providing the following services;

  • Cash deposit and withdrawal
  • Balance inquiry
  • Funds transfer services (local money value transfer)
  • Bill payment (taxes, utilities, tenement rates, subscriptions, e.t.c)
  • Generation and issuance of mini statement
  • Cash disbursement and cash repayment of loans
  • Agent mobile payments/banking services


A POS business is an additional way of getting income. Aside from your existing business, it is a way to expand service offerings and one of the best methods to cross-sell your products/services to walk-in customers.

The business needs to situated in places where there are no bank branches or busy environments with enough security measures in place. You are sure to increase your daily revenue if you get everything right.

Are you considering this business or are you already a banking agent? We would like to hear your thoughts in the comment. Please share this content with your audience if you found it useful.

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