How to Start POS Business in Nigeria: Complete Guide

POS business in Nigeria has been on the rise due to the increased number of small businesses and the scarcity of ATM machines in Nigeria.

You might be wondering why there are several POS businesses around the nooks and crannies of Nigeria. This is simply because it is a very lucrative business opportunity if you apply the right methods and strategies on how to start a POS business in Nigeria and be successful.

How do I become a POS owner?
What do I need to start a POS business in Nigeria?
Which bank is best for POS machine in Nigeria?
How much does it cost to open a POS business in Nigeria?
How much do POS operators make in Nigeria?

I believe you are reading this article because you are bothered by one or more of the above questions. Hence, in this guide, you’ll learn how to start a successful POS business in Nigeria.

WHAT IS POS BUSINESS?

POS stands for point of sale. A POS is a payment device or system that is aimed at facilitating payments by retailers, customers, and business owners.

POS was introduced in Nigeria by the Central Bank of Nigeria (CBN) in 2013. Ever since then, retail shops, restaurants, supermarkets, and other businesses have implemented this payment system into their rosters.

The purpose of POS is to facilitate payment in this modern cashless society. Hence, Nigerians have taken advantage of this as a means of lucrative business.

WHAT DO I NEED TO START POS BUSINESS IN NIGERIA?

There are certain requirements when it comes to starting a POS business in Nigeria. You must have been asking yourself what the requirements are or what you need to start a POS business in Nigeria.

Here are the requirements you need to consider before you try to start a POS business in Nigeria:

Be a business owner
Have a business name registered
A business location (if necessary)
Valid National or Government Approved ID
Passport photographs
BVN (Bank Verification Number)
A minimum working capital to start.

These are the basic requirements before thinking of starting a POS business in Nigeria. I’ve also prepared a full guide and article on how to register a business name in Nigeria.

HOW TO START A POS BUSINESS IN NIGERIA

You must have been asking yourself, How do I become a POS owner? Or how do I become a POS agent? When it comes down to how to start a POS business in Nigeria, you need to consider some important steps.

Here are the step-by-step guide to start a POS business in Nigeria:

Be capital ready
Meet all requirements
Visit your bank of choice
Apply to become a POS agent
Find a location
Kick-start your POS business.

1. Be Capital Ready

The first step to start POS business in Nigeria is to be capital ready. You need to have your capital.

Capital is the baseline of any successful business in Nigeria. There are minimum capital requirements that you need when starting a POS business in Nigeria. The minimum capital to start a POS business in Nigeria is around #30,000 to #50,000. Therefore, it is important to raise your capital before even thinking of starting a POS business in Nigeria.

2. Meet all Requirements

It is important to meet all the requirements when it comes to starting a POS business in Nigeria. I’ve outlined all the basic requirements you need earlier in the article.

It is very necessary for you to meet all the requirements in order to avoid rejection of your application to become a POS agent in Nigeria.

3. Visit Your Bank of Choice

Having met all the requirements, the next step in starting a successful POS business in Nigeria is to visit your financial institution of choice. There are a lot of financial institutions or banks to choose from.

You might be asking: What bank is best for POS machines in Nigeria? I’ll strongly recommend Moniepoint and Opay. Both of these banks give out POS machines at a cheap rate of $21,000 only.

4. Apply to Become a POS Agent

After visiting your bank or financial institution of choice, I strongly believe your aim there is to apply to become a POS owner or POS agent.

Fill in all the necessary paperwork and information required of you in your application process. After applying, all you need to do is sit back and wait to get approved after reviewing your information.

Approval takes a few days, or sometimes even faster than that; it all comes down to your application and business days.

5. Find a Location

If approved to become a POS owner or POS agent, the next step to starting a POS business in Nigeria is to find a suitable location.

Listen, this step is very, very crucial. This is because selecting the wrong location would be a waste of time and investment. You need to find a location with a high demand for cash or a populated location like Lagos.

Becoming a successful POS agent all comes down to location. Yes, I said it. It all comes down to finding the perfect location, except if you’re a retail store, supermarket, or restaurant, where your location doesn’t really affect you.

6. Kick-start your POS business

You’ve already successfully become a POS agent or POS owner; go ahead and start your POS business at the preferred location you selected. It’s that easy.

You can promote your POS business to friends on social media to get more reach. You can also choose your own preferred commission for every transaction done from your POS machine.

COMMON QUESTIONS ABOUT POS BUSINESS

How much do POS operators make in Nigeria?

POS operators make different amounts of money. It all comes down to your choice of commission that you set on every transaction made from your POS machine.

How much is POS charges in Nigeria?

POS charges differ from location to area; it all comes down to the POS owner or POS agent or the current economic situation of the country.

What bank is best for POS machine in Nigeria?

I’ll strongly recommend Opay, Moniepoint, UBA, and FCMB.

Do i need an existing business to get approved for POS?

Yes! You need to have an existing business, and you need your business name to be registered.

CONCLUSION

To be a successful POS business owner in Nigeria, it all comes down to location and your efficient service.

Location is a big determinant; a poorly selected location won’t yield the perfect result you’re looking for. I’ll strongly advise you to find the perfect location. Good luck in your POS business.