How To Start A POS Business In Nigeria

is a legitimate way to make money in Nigeria. However, it’s more profitable in communities with no banks and places where ATMs are not enough to serve the community’s financial needs.

It is also called agent banking , and it’s an extension of the services offered by financial institutions to enable easy service offering to a wide range of customers.

(Point of Sale) business offers services like funds transfer and withdrawal, airtime sales, bill payments like GOTV, DSTV, Startimes, PHCN, and other utility bills. 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.

By creating easy access for financial transactions in different localities, the POS business has given individuals and business owners additional income. As a result, they are sometimes called bank agents.

Although not serving as direct employees of a bank, they deliver banking services on behalf of banks on an agreed commission. It is a profitable business and one of the best means of getting passive income.

Are you looking to start a POS business in your locality? This article contains all the information you need to set up as a bank agent fully.

POS Business

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. They conduct the financial transaction and allows clients to deposit, withdraw, transfer funds, pay bills, recharge airtime, inquire about customer’s account balances, and other related services.

It thrives more in rural areas, semi-urban centers, the unbanked and underbanked communities. It is similar to any other remote banking channel. The banks equip the agents with a point-of-sale (POS) card reader, mobile phone, barcode scanner, personal identification number (PIN) pads, personal computer, etc. They are third party agents and can be an agent to as many banks as they can serve

If you have an existing small business that brings in cash daily, you can diversify your revenue streams by venturing into the POS business.

Start POS Business In Nigeria

As I have earlier stated, the POS business thrives more in rural areas or semi-urban centers, where there are no banks or few ATMs to serve the people. Hence, if you intend to venture into this business, the first thing is to ensure that the number of banks in your location cannot serve the community. This way, you are sure of making a profit.

In this article, I have highlighted a step-by-step plan on how to start a POS business in Nigeria and the basic things you need to get started.

Are you considering this business? Then visit our shop page to get the comprehensive guide which contains the cost breakdown of starting the business.

Step 1: Have An Existing Business

The POS business has to do with finance and must, therefore, be approached carefully. Besides, the Central Bank of Nigeria is very particular about the business entities that qualify to be agents. So, extra care is taken by commercial banks before they authorise an agent for their retail banking.

To be eligible, you must have an existing business in operation at least for 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;

•Limited Liability Company

•Sole Proprietorship


•Cooperative Societies

•Public Entities

•Trusts or any other entity aside faith-based or NGOs.

As long as you have any of the above requirements, doing a POS business or serving as a bank agent is possible.

Step 2: Approach A Bank

Virtually all Nigerian banks allow agent banking services. As soon as you decide on the bank of your choice, the next thing is to approach the bank and get details of their requirement. The CBN guide allows being an agent for as many banks as you can serve.

You will need to fill some documents/agreement forms on the transaction conditions. Then, the bank reviews the application in line with CBN, internal criteria and agrees with you if you meet all requirements.

Also, you must have an account for a direct deposit for the business and provide some documents as part of the requirements for the proposal.

Requirements For POS Business

Some of the required documents include;

•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)

•Tax Identification Number (TIN)

•Memorandum and Article of Association

•Credit Bureau Report

•A minimum working capital of N50,000

Step 3: Get The Equipment

Once your application is considered, the bank then supplies the needed tools and equipment for the business. Aside from the mobile phone, the following materials are usually provided by the bank:

Step 4: Location

To thrive in the business, it’s advisable to choose a location with limited banks or places with few ATMs. Also, choose strategic locations like the bus stop, public market, event centers, etc. All of these factors will affect your daily profit.

Once you have a good location, construct a shed or shop but create enough spaces for swift movement for you and the customers. Have a banner displayed at the entrance to show the retail banking services you offer.

Then, for security measures, you can have a special purse/pouch around your neck or a safe with a solid lock to prevent theft and burglary.

Also, if you notice that an ATM is not dispensing cash, you can go there to advertise your service. Some people there in need of cash might subscribe to your service.

Step 5: Render Services

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

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About 9jabam 2465 Articles
My name is Ezema Anthony, Am the founder and CEO of,I am a web designer and a blogger from Enugu State but based in Anambra State. This website is designed to bring to you Entertainment, Games, Music and so on

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