By Musa Ibrahim | Updated: November 2025
Walk down any street in Lagos, Kano, or Onitsha, and you will see a POS umbrella. It has become the de-facto banking system for the average Nigerian. But with so many agents already, is it still profitable to start a POS business in Nigeria in 2025?
The short answer: Yes, but only if you are strategic. Cash is still king in Nigeria, and traditional banks are reducing their physical branches, not increasing them. This gap creates a permanent demand for POS agents who serve as "human ATMs."
However, the game has changed. In 2025, transaction fees have evolved, and the cost of entry has shifted. This guide gives you the real numbers—no fluff.
Startup Cost Breakdown (2025 Estimates)
You don't need millions to start, but you do need a budget. Here is a realistic breakdown for a standard setup:
| Item | Estimated Cost (₦) | Notes |
|---|---|---|
| POS Terminal | 20,000 - 60,000 | Depends on if it's caution fee or outright purchase. |
| Kiosk / Umbrella & Table | 15,000 - 50,000 | A metal kiosk costs more but is safer. |
| Start-up Cash (Float) | 100,000 - 200,000 | You need cash to give customers! |
| Banner & Marketing | 5,000 | "POS AVAILABLE HERE" banner. |
| TOTAL | ₦140,000 - ₦315,000 |
Choosing a Provider: Moniepoint vs. OPay vs. PalmPay
Your choice of provider determines your profit margin. Here is the 2025 comparison:
1. Moniepoint
- Cost: ~₦21,500 (Caution Fee). You don't own the device; you return it if you stop.
- Charges: 0.5% for withdrawals below ₦20k. Flat ₦100 for above ₦20k. Transfers are ₦20 flat.
- Target: Strict daily target of ~₦80,000 transaction value.
2. OPay
- Cost: Mini POS (~₦10,000), Android POS (~₦50,000 - ₦60,000).
- Charges: Similar to Moniepoint, but they often have aggressive bonuses.
- Ownership: You own the device if you buy the Android version.
3. PalmPay
- Cost: ~₦40,000 (Traditional) or ₦60,000 (Android) for purchase.
- Charges: Very competitive. Often ₦10 for deposits.
Profitability Analysis: The Real Numbers
How much can you actually make? Let's do the math based on average street charges.
The Charges (What You Charge Customers)
- Withdrawal (₦1,000 - ₦5,000): ₦100 charge.
- Withdrawal (₦6,000 - ₦10,000): ₦200 charge.
- Deposit: ₦100 charge.
The Profit Calculation
If a customer withdraws ₦5,000:
- You charge: ₦100.
- Bank charges you (0.5%): ₦25.
- Your Profit: ₦75.
Scenario: If you do 30 transactions a day (mixed withdrawals and deposits) with an average profit of ₦80 per transaction:
30 x ₦80 = ₦2,400 daily profit.
₦2,400 x 26 days = ₦62,400 monthly profit.
This is for a "slow" location. Busy locations (markets, bus stops) easily do 100+ transactions daily, pushing monthly profits to ₦200,000+.
Success Tips for 2025
- Location is Everything: Don't open next to 5 other agents. Look for areas with no ATMs or where ATMs are notoriously unreliable.
- Cash Management: A POS agent without cash is useless. Build a relationship with a nearby petrol station or supermarket to buy cash from them so you don't have to go to the bank every time.
- Security: Never keep large sums of cash late at night. Close early if you are in a volatile area. Use a waist pouch, not a drawer.
- Add Services: Don't just do cash. Sell airtime, pay electricity bills (IKEDC/EKEDC), and do sports betting funding (Bet9ja/SportyBet) to increase your income streams.
Ready to start? You might need to register a Business Name to get the higher-tier POS terminals. See our Business Registration Guide.
Handling Failed Transactions & Reversals (Stay Professional)
Reversals are common. How you handle them determines whether customers trust you or avoid you forever:
- Keep proof: print receipts where possible and screenshot transaction references.
- Verify properly: do not rely on customer screenshots; check your POS/app history and your balance.
- Set expectations: some reversals are instant; others can take hours or days depending on bank/network.
- Escalate fast: save your provider’s support contacts and report issues with the transaction reference.
Daily Operating Checklist
- Start day with enough cash + bank balance (float) for your area’s demand.
- Record cash-in/cash-out and reversals (a notebook is enough).
- Close day by reconciling totals and setting aside profit separately from float.
FAQ
How much profit can a POS agent make per day?
It depends on volume and location. A quiet spot may earn a few thousand daily; busy markets and transport hubs can earn significantly more. Track volume for 2 weeks before upgrading your setup.
Do I need CAC registration to run POS?
Some providers and higher tiers may request business registration or additional KYC. If you plan to scale or request bigger limits, registration helps.
Daily Operations (What Makes Agents Win)
- Float management: keep enough cash and bank balance to avoid turning customers away.
- Reconciliation: balance your transactions daily to spot errors early.
- Customer service: be calm during failed transactions and reversals.
Fraud & Security Tips
- Never accept suspicious transfers or “overpayments”.
- Confirm credited alerts properly—don’t rely on screenshots.
- Close earlier in high-risk areas and avoid keeping large cash overnight.
- Use a secure kiosk setup and stay visible (busy spots reduce risk).
How to Increase Profit (Beyond Withdrawals)
- Airtime/data sales and bill payments
- Agency banking services (account opening where available)
- Business partnerships (nearby shops that send you customers)
List Your POS Location
Many people search “POS near me” when there are no ATMs. You can get discovered by listing your location:
List your POS business on 9jaDirectory and select the most relevant category such as Finance. If your POS spot is already listed, use “Claim this Business” to manage it.
