How to Start a POS Business / Mobile Money Agent Business in Nigeria (2025 Guide)

In today’s Nigeria, where cash scarcity, unreliable bank networks, and long ATM queues are common frustrations, the POS business (Point of Sale) — also known as mobile money agent business — has emerged as a simple yet highly profitable venture.

This business solves a real problem: giving people access to basic financial services in places where traditional banks are far away or inefficient.

Whether you're looking to escape unemployment, earn side income, or invest in a growing business, starting a POS business in Nigeria could be your smartest move in 2025.

Let’s break down how to start, how much you need, and how to succeed — step-by-step.

What Is a POS / Mobile Money Business?

A POS agent helps people perform basic banking services like:

• Cash withdrawals
• Cash deposits
• Fund transfers
• Airtime/data recharge
• Bill payments (DSTV, PHCN, etc.)
• BVN enrolment (for some operators)

In return, the agent earns a commission on each transaction. You don’t need a degree. You don’t need a shop (at first). You just need a working POS machine, an umbrella or kiosk, and hustle.

Why Start a POS Business in Nigeria?

Here’s why it's one of the hottest small businesses right now:

• Low startup capital (₦50,000 to ₦250,000)
• No special qualifications required
• High demand for cash and financial services
• Quick daily cash flow (you earn every day)
• Can be started in rural or urban areas
• Expandable into other services like mini-marts or phone accessories

What You Need to Start a POS Business in Nigeria

Here are the essentials:

1. Startup Capital

• You’ll need about ₦100,000 to ₦250,000 depending on:
• Cost of the POS machine
• Initial working cash (float)
• Location setup (table, umbrella, kiosk, signage)

2. A Reliable POS Machine

• You can get this by applying to:
• Opay
• Moniepoint
• Palmpay
• Baxi Box
• Kuda
• MTN MoMo
• Most providers give out the POS device either free or at subsidised rates after meeting certain conditions (e.g. transaction targets).
• Some providers lease POS machines for as low as ₦20,000–₦30,000.

3. A Secure, High-Traffic Location

• Bus stops, markets, streets near banks, school gates, or community centres.
• Look for places with high foot traffic and poor banking infrastructure.

4. Valid Identification

• BVN, NIN, or a government-issued ID.
• You’ll also need utility bills and passport photographs.

5. Startup Float

• This is the cash you use for transactions.
• You’ll need at least ₦50,000–₦100,000 to keep the business running daily.

Step-by-Step Guide to Starting Your POS Business

Step 1: Choose a POS Provider

Top options in Nigeria include:

• Moniepoint – Known for reliable transactions and excellent customer support.
• Opay – Very popular, especially among new agents.
• Palmpay – Offers digital wallets and agency banking tools.
• MTN MoMo – Backed by MTN, good for rural outreach.
• Baxi – Provides full agency tools including utility payment solutions.

Compare their charges, speed, reliability, and customer service before choosing.

Step 2: Register and Apply

Visit the official website or an office of your chosen provider and submit:

• Valid ID
• Utility bill
• Passport photo
• BVN
• Business location

Wait for approval. This typically takes 3–7 working days.

Step 3: Fund Your Wallet (Float)

Before transactions, you must load your account with funds. This float allows you to pay or withdraw for customers and is critical to avoid downtime.

Step 4: Get Set Up and Start Marketing

• Set up your table, chair, or kiosk.
• Print clear signage with “POS/Cash Available” and your charges.
• Let neighbours, shop owners, and passersby know what services you offer.

Step 5: Start Transacting

Use the POS to:

• Withdraw money for customers (₦100–₦500 per transaction)
• Help them send money (₦50–₦300 charge)
• Sell airtime (₦5–₦10 commission per ₦1000 sold)
• Pay utility bills

How Much Can You Earn Monthly?

Here’s an estimate for daily transactions:

Transaction Type	Daily Volume	Commission per Unit	Daily Profit
Cash Withdrawals	40 x ₦5000	₦100 per ₦5000	₦4,000
Transfers	20	₦50–₦100	₦1,000
Airtime/Data	₦10,000	4–6% commission	₦400–₦600
Bills	5	₦100–₦200	₦500–₦1000

Monthly profit range: ₦80,000 to ₦200,000+ (depending on your location, consistency, and customer base).

Tips to Succeed and Avoid Losses

• Avoid fraud: Always confirm the customer’s ID, validate account names, and double-check before clicking “send.”
• Track your float: Monitor your cash and digital balances carefully.
• Be friendly: Customers love polite agents. Greet everyone.
• Stay open during bank downtimes: You’ll get more customers when ATMs are not working.
• Get backup power: Even a small power bank helps your POS stay on during outages.

⚠️ Common Challenges and How to Handle Them

• Fraudulent notes: Use a money detector pen or UV light.
• POS network failures: Work with multiple providers if you can.
• Security risks: Stay in secure, well-lit areas or rent a small shop.
• Regulatory issues: Stay updated on CBN or agent banking rules.

Final Thoughts

The POS/mobile money agent business in Nigeria is one of the most accessible, low-risk ventures you can start today. With just a small investment, you can begin earning daily income while offering a much-needed service to your community.

Whether you're in the city or a remote village, this is one of those “na now we dey” opportunities — but you must take action to see results.

Disclaimer:

This article is for informational purposes only and does not constitute business or financial advice. Please verify all information with your POS provider and conduct due diligence before starting.