At almost every street corner in Nigeria today, you’re likely to find a familiar setup of a plastic chair under a faded umbrella, a small table holding a Point-of-Sale (PoS) terminal, and a steady stream of people queuing to make cash withdrawals or transfers. The increasing saturation of PoS agents begs the question: How profitable is PoS business in Nigeria?

Cash is Still King

According to the Nigeria Inter-Bank Settlement System (NIBSS), PoS transactions in Nigeria surged to ₦18 trillion in 2024, up from ₦10.7 trillion the previous year, representing a 69% increase. This growth is fueled by Nigeria’s inconsistent banking infrastructure, periodic cash shortages, and an increasingly cash-reliant population.

With over 1.9 million active PoS terminals registered nationwide (NIBSS, Q1 2025), the business has become both widespread and deeply ingrained in everyday Nigerian life.

What PoS Agents Earn

Typical charges range from ₦100 to ₦500 per transaction, depending on the amount and the location. A withdrawal of ₦5,000 might attract a ₦100 fee, while ₦20,000 could cost a customer up to ₦500. These fees cover the agent’s profit margin, fintech platform commissions, and the mandatory ₦50 Electronic Money Transfer Levy on transfers above ₦10,000.

Depending on the level of activity at their location, PoS operators handle between 20 and 70 transactions daily, resulting in a daily income of ₦3,000 to ₦12,000. That adds up to ₦90,000 to ₦360,000 per month, a figure that comfortably outpaces Nigeria’s current minimum wage.

However, earnings vary widely. Operators in busy locations, such as transport hubs and marketplaces, tend to earn more, while those in quieter areas may struggle to stay afloat. 

The choice of fintech platform also affects profitability, with platforms like Opay offering tiered rewards for high transaction volumes, while others may deduct higher backend fees.

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What They Spend to Stay Afloat

Running a PoS business isn’t without cost. Mobile data alone can consume up to ₦30,000 monthly, especially for agents relying on cloud-based terminals. Transportation costs to source cash, particularly due to bank withdrawal limits, can reach ₦25,000 per month. Rent, electricity, and wages for assistants further reduce the take-home profit.

Some agents operate from rented shops, paying up to ₦300,000 annually, with an additional ₦30,000 per month allocated to operational costs, such as power and staffing. After deducting all these expenses, the monthly net income can drop to as low as ₦15,000 to ₦20,000 for some agents, especially in high-cost urban environments. However, rent cost is cheaper for those who operate under small umbrellas – they typically pay a daily or weekly stipend for the space.

A Business of Risks

Aside from expenses, point-of-sale (PoS) agents face significant risks. The nature of their business makes them frequent targets for robbery and fraud. 

Fake alerts, delayed transaction reversals, and technical glitches can result in significant financial losses. Unlike traditional banks, PoS agents often operate with limited institutional support when something goes wrong.

Still, the business endures, and even thrives, because of Nigeria’s ongoing dependence on physical cash. Currency held outside Nigeria’s banking system surged to ₦4.6 trillion in March 2025, according to the Central Bank of Nigeria (CBN), representing 91.9% of the total ₦5 trillion in circulation for the period.

The PoS business in Nigeria is profitable, but probably not in the way most assume. It’s a grind. It requires consistency, wise location choices, and careful cost management.