Commonized But Life Changing Gold Mine in POS Business in Nigeria

In Nigeria, one of the most popular businesses to establish for the average Nigerian is a point-of-sale (POS) business, that is why it is commonized. With the ease and convenience it offers consumers, it is gradually replacing ATMs. In exchange for a commission or charge, a POS business operator or mobile money agent makes cash available to people via a POS machine. But notwithstanding, the business has changed many lives in Nigeria. I called it commonized but life changing gold mine in POS business in Nigeria.


What Makes POS Business Commonized In Nigeria

Due to the shortage of Automated Teller Machines (ATMs) and the long queues that customers encounter at ATMs. In Nigeria, you can now find someone running a POS business almost anywhere around the road and streets.

After the Central Bank of Nigeria (CBN) created the agent banking system in 2013, the POS business began to spring up rapidly in Nigeria. This provided a new way for financial services to reach bank consumers in rural, unbanked, and underbanked areas. As a result, POS business operators serve as a vehicle for financial institutions to reach out to previously underserved areas of society.

Many people doubt that a POS business will be profitable. This business, on the other hand, has a vast and diverse market, which includes everybody with a bank account who needs to do any transactions. It is, without a doubt, a profitable venture. POS agents are not direct employees of banks and hence have authority over their companies, while being a retail channel offered by banks.

Is it Profitable to Run A POS Business in Nigeria?

Starting a POS business can be lucrative and rewarding in the long run. Particularly if you already own and operate a business with a physical presence. Because it lowers the amount of money you’ll need to start this business.

This is because, on a daily basis, an increasing number of individuals use POS centers to conduct their financial transactions and avoid the stress that comes with going to banks.

In Nigeria, the POS business is successful because many remote areas lack bank branches, therefore POS agents have taken on the role of the banks. A POS agent or business also does not need to market because they are in the public view, and customers would always seek them out for the convenience they bring.

Read Also  Long-Term Gold Investment in Nigeria – All You Should know

POS agents have now established themselves as a viable alternative to visiting the bank, particularly for cash withdrawals and transfers.

In Nigeria, starting a POS business does not require a large amount of capital, and you may begin making profit the day you open. Just make sure you’re in a very strategic position. A POS agent in Nigeria can earn anywhere between N7,000 and N10,000 per day, depending on their location and how well they’ve earned confidence with their customers, particularly those in their immediate vicinity.

How Do You Make Money From a POS Business in Nigeria?

You profit from the commission you receive from each customer that visits your POS machine. Assume a customer requests a withdrawal of N5,000. You’ll charge N100 for the transaction, which you’ll share with your POS provider. You can take N60 as commission, while the company’s bank would take N40.


What Does it Cost to Start a POS Business in Nigeria?

In Nigeria, there is no set cost for beginning a POS business. The most important question is whether you’re getting a free POS machine or not.

The cash on hand you’ll need to make withdrawals is the most important cost of launching a POS business in Nigeria. This can be anywhere from N250,000 and N150,000.

Some banks and fintech firms in Nigeria charge between N35,000 and N40,000 for a new POS machine/terminal. However, some companies may provide you a free POS machine if you meet certain criteria.


Where Can I Get a POS Machine in Nigeria?

To be on the safer side, Banks and other financial organizations in Nigeria are the only places where you may get a POS machine. In Nigeria, the following are well-known banks and financial institutions where you can get a POS machine. GT Bank, First Bank, Access Bank, UBA, Zenith Bank, OPAy, Baxi, Monie Point, Kudi and more.


How to Become a POS Agent

Starting a POS business is simple and may be done in two weeks to a month if you match the host bank’s standards.

  1. Get a strategic location: For a business like this, densely populated places are ideal. Look for crowded areas with a lot of pedestrian traffic, such as markets, parking lots, and residential areas.

  2. Raise Capital: As previously said, the business requires very little capital. You also won’t have to worry about your shop’s furniture being too expensive. A simple storefront with a clear sign advertising your services is effective.

  3. Approach a bank and make an application for a POS machine: Choose your preferred bank and contact them to learn more about their requirements. You can get a POS machine rented, bought, or even for free if you apply to be a POS agent. You can be an agent for as many banks as you like, according to the official CBN handbook. Fill out all of the required paperwork and wait for your application to be granted. You may require the following documentation:

  4. Valid identification, such as a driver’s license, a National ID Card, a Voter’s ID Card, and so on.

  5. Passport photographs

  6. Bank Verification Number (BVN)

  7. Current Account references

  8. Evidence of business registration (CAC Certificate)

  9. A minimum capital of ₦50,000

Read Also  5 Hobbies to Make Money Fast in 2023

You will receive the POS machine once your application has been approved, and you can begin delivering your POS Business services to customers immediately.

Advantages and Disadvantages of POS Business in Nigeria

Commonized But Life Changing Gold Mine in POS Business in Nigeria
When Doing POS Business You Need to Becareful As Well

The following are the advantages of a POS business in Nigeria for both the business owner and the customers:

  • It might be an additional source of revenue for small business owners.

  • People can save time and money by not having to go to the bank to perform cash transactions.

  • Encourages the country’s financial inclusion.

  • People don’t have to carry as much cash around, which makes them less vulnerable to theft and armed robbery

  • Merchant revenues increase because they can serve both cash and card-carrying clients.


The following are some of the difficulties and challenges of owning a POS business in Nigeria:

  • Attacks by Robbers:  Because this is a cash-based business, it may attract robbers and criminals. Because this business does not allow you to hire a security guard. You’ll need to move and hold money with extreme carefulness and alert.

  • Lack of regulation in Agency banking: Due to the lucrative nature of the POS business, many people are rushing into it, and the industry is devoid of regulation. Some POS shops are extremely near to one another in some areas. The spacing of the shops is not governed by any rules. Furthermore, because there is no set fee for POS agents, fees may vary from one agent to the next.

  • Banking Networks can be a problem in this POS business. As a result, it’s critical that whichever POS agent service you choose has dependable network services. Some people use up to three POS machines to combat this.

Read Also  5 Best Free Sales Funnel Builder for Affiliate Marketing


Commonized But Life Changing Gold Mine in POS Business in Nigeria

The good news about this business is that is more profitable than you think. The business gives you the chance to make at least N10,000 on a daily basis based on the location you are doing the business. Before you plan to start the business, it is advised that you choose your location carefully because this will give you the chance of making more profit in the business.

Also Read Packing Jobs Near Me – How I Position for them

Imagine getting N10,000 daily, that is about N250,000 on a month excluding Sundays. this means you are far richer than a Government worker that is on a minimum wage of N30,000 even the ones receiving N100,000 as a monthly salary. Considering the capital involved in starting the POS business, it is very easy to have a stand of POS business opened. That means you can easily escalate the business and start earning N500,000 to N1,000,000.

you can have like 5 stands of POS business open within a year. this means u have automatically created jobs for 5 people and also boost your earnings to N1,000,000. Whatever is said here is 100% achievable and realistic.


Always observe things that are commonized by people, that is where the gold is. All you need to do as a human is to go deeper into that thing. See how to make a living from the commonized things. I called it Commonized But Life Changing Gold Mine in POS Business in Nigeria, the reason is that the profit is very loud and very tempting only when you see the positive part of the business.


Photo Credit:

Leave a Reply
You May Also Like