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How To Start POS Business In Nigeria

Last updated on February 29th, 2024 at 11:07 am

Are you interested in starting a lucrative and dynamic business venture in Nigeria?

POS businesses in Nigeria have gained immense popularity due to their ability to provide a wide range of financial services, from accepting payments to managing inventory.

In this comprehensive guide, we’ll walk you through the process of starting a POS business in Nigeria, covering everything from understanding what a POS business is to overcoming challenges and effectively marketing your venture.

What is a POS Business?

At its core, a POS business provides point-of-sale services to other businesses, enabling them to accept payments, track sales, and manage inventory.

These services are pivotal in enhancing business efficiency, customer service, and revenue management.

Whether your POS business is brick-and-mortar or online, it offers businesses the opportunity to streamline their operations and provide a seamless payment experience for customers.

Examples of POS Businesses in Nigeria

The POS business landscape in Nigeria is thriving, and the convenience it brings has significantly contributed to its popularity.

POS businesses are commonly found in markets, near restaurants, supermarkets, and even close to worship centers.

They operate using payment-processing systems that allow users to perform various financial transactions without visiting a bank.

Here are some prominent examples of POS businesses in Nigeria:

  1. Paga PoS Machine
  2. Moniepoint
  3. BaxiBox POS
  4. Banks POS
  5. FlutterWave POS
  6. Epos Now

Each of these POS businesses offers unique features and benefits.

For instance, Epos Now provides specialized POS software for various businesses, while Moniepoint is highly regarded for its suitability for small businesses.

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BaxiBox POS is known for its affordability, and Banks POS and FlutterWave POS are excellent options for businesses seeking convenient payment solutions.

To Start POS Business In Nigeria, familiarize yourself with the different POS service providers available in Nigeria.

This knowledge will help you choose the best fit for your target market and business goals.

Requirements for Starting a POS Business in Nigeria

Starting a POS business in Nigeria involves meeting several essential requirements. These include:

  • A valid means of identification, such as a national ID card or passport.
  • A Bank Verification Number (BVN) to authenticate customer identities.
  • Two recent passport photographs.
  • Two current account references to vouch for your financial reliability.
  • Evidence of business registration, such as a certificate of incorporation.
  • A physical location, which could be a shop, kiosk, or market stall.
  • A POS machine, available for purchase from banks or licensed POS providers.
  • Working capital to cover operational costs.

Understanding and fulfilling these requirements is the foundation of your POS business journey.

Prepare the necessary documentation and resources to streamline the application process and set up your business smoothly.

How to Start a POS Business in Nigeria

Embarking on your POS business journey involves several key steps:

Step 1: Research the POS Business

Conduct thorough research to understand the industry, requirements, and potential challenges. Gather information online, read articles, and talk to experienced individuals.

Step 2: Raise Start-Up Capital

Acquire the necessary funds to launch your business. The cost of starting a POS business in Nigeria can be relatively low, often starting at around N50,000.

Step 3: Choose a Good Location

Location is crucial to your business’s success. Opt for easily accessible areas with high foot traffic, such as markets, universities, and event centers.

Step 4: Select a POS Service Provider

Choose a reliable POS service company that aligns with your business goals. Options range from traditional banks to fintech companies.

Step 5: Acquire a POS Machine

Invest in a POS machine, a fundamental tool for your business operations.

The cost of a POS (Point of Sale) machine in Nigeria varies depending on the brand, quality, and features. Here are some of the findings:

  • A new POS machine in Nigeria can cost between N50,000 to N100,000.
  • The cost of a POS machine in Nigeria can range from N45,000 to N75,000, and in some cases, they are even as high as N150,000 and N200,000.
  • Some POS service providers offer free POS machines to their agents.
  • The price of POS machines from different brands and dealers in Nigeria varies. For instance, the Opay Mini POS Machine price is N8,500 Naira, while the traditional Opay POS machine costs N35,000. The PalmPay POS machine price in Nigeria is N30,000 Naira, while the Kudi POS Machine costs N35,000 Naira
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Step 6: Register with Your Chosen Provider

Complete the registration process with your selected POS service provider. This typically involves submitting an application form and required documents.

Step 7: Advertise Your Business

Promote your POS business through various channels such as social media, flyers, and word of mouth. Highlight your unique features and benefits to attract customers.

You need a business website to attract more POS customers in Nigeria.

To successfully launch your POS business in Nigeria, follow these steps that will guide you in the right direction.

Most Profitable Locations for a POS Business in Nigeria

When it comes to maximizing your POS business’s profitability, location is key. Here are some of the most lucrative locations for a POS business in Nigeria:

  1. Markets: The bustling environment of markets ensures a constant flow of potential customers.
  2. Students’ Areas: Areas around universities and educational institutions offer a high demand for financial transactions.
  3. Beside Filling Stations: People often need to withdraw cash for fuel or other purchases near filling stations.
  4. Malls: Shopping centers attract large crowds, making them ideal locations for a POS business.
  5. Supermarkets: Shoppers often require financial services while purchasing groceries.
  6. Post Offices: Locations near post offices can capitalize on the need for financial transactions during mail-related activities.
  7. Parks, Shops, Offices, Fuel/Gas Stations, Pharmacies, Eateries, etc.

Additionally, commercial districts, universities, significant junctions, and non- or under-banked regions, such as rural areas, offer promising opportunities for your POS business.

Challenges of Running a POS Business in Nigeria

While a POS business can be profitable, it’s essential to be aware of the potential challenges:

  • Network Issues: Poor network connectivity can hinder transactions and frustrate customers.
  • Fraud: There’s a risk of fraudulent activities, which can lead to financial losses.
  • High Commissions: Paying high commissions to banks and providers can affect your profits.
  • Competition: The competitive landscape might require creative strategies to stand out.
  • Regulations: Complying with Central Bank of Nigeria (CBN) regulations can be complex.
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Overcoming these challenges requires careful planning, investment in security measures, and staying updated on regulations.

If you’re planning to start a POS business in Nigeria, it’s important to prepare for potential challenges.

You can do this by taking steps to prevent fraud, providing outstanding customer service, and staying up-to-date on industry news and trends.

How to Market a POS Business in Nigeria

Effective marketing is essential for attracting customers and growing your POS business. Here are some strategies to consider:

  1. Location Choice: Opt for high-traffic areas to increase your visibility and customer base.
  2. Customer Service: Prioritize exceptional customer service to create a positive reputation.
  3. Advertisement: Utilize social media, flyers, and word of mouth to spread the word about your business.
  4. Incentives: Offer discounts, loyalty programs, and referral bonuses to attract and retain customers.
  5. Partnerships: Collaborate with other businesses to expand your reach.
  6. Value-Added Services: Provide additional services like bill payments and money transfers to attract customers.
  7. Security: Ensure the security of your business to build trust among customers.

With these marketing techniques, you can effectively promote your POS business in Nigeria and attract more customers.

Most Popular POS Machines Used in Nigeria

When it comes to choosing a POS machine, consider some of the most popular options in Nigeria:

  • OPay POS: Known for reliability and user-friendliness, offering various features.
  • Moniepoint POS: Affordable and easy-to-set-up solution suitable for small businesses.
  • Paga POS: Part of a mobile money platform, offering convenience and versatility.
  • BaxiBox POS: Innovative and portable with a reputation for quality service.
  • Firstmonie POS: Provided by First Bank of Nigeria, known for reliability.

Selecting a suitable POS machine is a critical decision for your business, impacting the quality of service you provide and the user experience for your customers.


Starting a POS business in Nigeria holds immense potential for profitability and success.

To establish a successful business that benefits both your customers and your profits, it’s crucial to have a deep understanding of the industry, meet all necessary requirements, conquer any obstacles, and promote your venture effectively.

So, if you’re ready to embark on a journey into the world of POS entrepreneurship, remember the essential steps and strategies outlined in this guide to set yourself up for success.

Remember, the key to success in the POS business is to provide value, build strong customer relationships, and stay adaptable to the evolving landscape of the Nigerian market.

Best of luck on your exciting POS business journey in Nigeria!

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