{"@context":"https://schema.org","@type":"Article","mainEntityOfPage":{"@type":"WebPage","@id":"https://alat.ng/articles/business-ideas-how-to-start-a-pos-business-in-nigeria"},"headline":"Business Ideas | How to Start A POS Business in Nigeria","description":"The Point of Sales – POS business began to spread in Nigeria in 2013 after the Central Bank of\r\nNigeria (CBN) introduced the agent banking system in 2013. This opened up a new portal for\r\nfinancial services to reach bank customers in remote, unbanked, and underbanked societies.\r\nThis means that POS businesses serve as a way to extend the services offered by financial\r\ninstitutions to relatively unreached parts of society.","articleBody":"

Starting A POS Business In Nigeria

The Point of Sales – POS business began to spread in Nigeria in 2013 after the Central Bank of Nigeria (CBN) introduced the agent banking system in 2013. This opened up a new portal for financial services to reach bank customers in remote, unbanked, and underbanked societies. This means that POS businesses serve as a way to extend the services offered by financial institutions to relatively unreached parts of society.

This is not the only problem solved by the agent banking services, however. Despite the push for a cashless economy in the world, Nigeria and other developing countries like it are still predominantly cash-based. The long queues and irregular network services at Automated Teller Machines (ATMs) encourage many customers to find alternative ways of receiving money or performing transactions. Asides from this, it also helps consumers withdraw money with ease when the nearest ATMs are far away. In other words, POS businesses make it easy for consumers to get the money they need in exchange for a commission.

Table of Content

Services offered by POS businesses
Advantages of owning a POS business
How to Become a POS Agent
How do POS agents make money?
Documents Needed to Apply for POS Machines from Bank

Many individuals often express skepticism about the profitability of such a business. However, the market for this business is large and diverse – including anyone who has a bank account and needs to perform any transactions. It is indeed a lucrative business. Although they are a retail channel provided by financial institutions that provide the POS & retail management (https://trytita.com/) software as well as the machines but POS agents are not direct employees of banks and so hold autonomy over their businesses.

Services offered by POS businesses

Some of the services offered by these businesses include:

Withdrawing money from any bank account
Opening a bank account (https://wemarestore.azurewebsites.net/personal/e-

banking/wemaonline/)

(read about how to open a wema bank account online)

(https://wemarestore.azurewebsites.net/personal/e-banking/wemaonline/)

Depositing money into any bank account
Paying utility bills such as electricity, airtime, water, and so on.
Sending money into any bank account
Enrolling for Bank Verification Number (BVN) (https://wemarestore.azurewebsites.net/resource-

center/bank-verification-number-bvn/)

Advantages of owning a POS business

Two notable advantages of owning a POS business are:

Low capital needed to start: Unlike most other businesses, the POS business does not require large sums of money in order to start. A minimum balance of N50,000 is adequate to begin the business. The cost of starting is also reduced by the fact that you do not need a fancy shop to host the business. Many of such businesses in Nigeria are simply a table and chair placed in a strategic location or a wooden shed.

The unlimited number of customers: Profit-making is relatively easy with this business as the target market is a large subset of the Nigerian population. The POS agent can make unlimited transactions in a day and run into large profits.

How to Become a POS Agent

The process of starting a POS business is easy and can be completed within 2 weeks to a month, provided you meet the requirements of the host bank.

Raise capital: As earlier mentioned, the capital required for the business is low. You also do not have to worry about extravagant furniture fittings for your shop. A humble store with a clear sign advertising your services works well.

Get a business loan from WEMA Bank (https://bit.ly/wemabusinessloan?utm_source=wema-website&utm_medium=seo&utm_campaign=wema_seo_aug) .

Get a good location: Densely populated areas work great for a business such as this. Look for crowded areas with pedestrian traffic such as markets, motor parks, residential areas, and so on.

Fulfill the official requirements: Financial services are a sensitive area of life to deal with and this is why the Central Bank of Nigeria has taken several precautions to ensure the integrity of those who will qualify to be agents. One of such requirements is that you must have an existing business of any type (in operation for at least 12 months) and have a shop or office from which you operate.

Approach a bank and apply for the POS machine: Decide on the bank of your choice and approach them to get the details of their requirement. By applying to become a POS agent, you can either get the POS machine leased, bought, or even for free. The official CBN

(https://www.cbn.gov.ng/) guide allows you to be an agent for as many banks as you desire. Fill in the necessary documentation and wait for your application to be approved.

Documents Needed to Apply for POS Machines from Bank

Some documentation you may need include:

Valid means of identification such as a Driver’s license, National ID Card, Voter’s ID Card, etc.
Passport photographs
Bank Verification Number (BVN) (https://wemarestore.azurewebsites.net/resource-center/bank- verification-number-bvn/)
Current Account references
Evidence of business registration (CAC Certificate) (https://www.cac.gov.ng/)
A minimum capital of N50,000
Once your application is approved, you will receive the POS machine and you may begin offering your services to customers.

How do POS agents make money?

The POS business is very profitable in Nigeria. This is partly due to the lack of access to banks within rural communities and remote settlements.

Once you have a good location and have built trust with the locals, you can be making as much as 7000-10,000 Naira on average, daily.

This figure comes from the commission that is gotten from every customer that uses the POS machine. A percentage also goes to your POS provider while you keep the rest as commission.

Top Agency Banking (https://wemabank.com/smes/services/agent-banking/) Provider.

","image":"https://wemaprodstorage.blob.core.windows.net/blogs/638416200941351399_pos-business-in-nigeria.jpg","author":{"@type":"Person","name":"mubarak.muhammed@wemabank.com"},"publisher":{"@id":"https://alat.ng/#organization"},"datePublished":"2024-01-23T16:21:34.1608163"}