If you’ve ever been stranded because the ATM wasn’t dispensing cash or the queue was too long, then you already know to start a POS business is in demand. POS agents charge ₦100–₦200 per withdrawal; with 20–50 withdrawals a day, you can realistically make about ₦1,000–₦10,000 daily (roughly ₦30,000–₦300,000 monthly) that’s real cash you can start getting every day if you set things up right.
So, if you’re thinking of start a POS business, you’re on the right track. The business is simple, profitable, and you don’t need millions to get started. But you must set it up the right way. This post breaks down everything you actually need, step by step, so you don’t waste money or time.
How to Start A POS Business In Nigeria
1.Understand the POS Business First
Before you jump in, take time to know how it works. Too many people rush in and then get stuck when customers complain about charges or when they realize there are too many competitors.
Here are some things to consider:
- Decide your services: Will you focus only on cash withdrawals and deposits, or also add airtime/data sales and bill payments?
- Learn the transaction flow: When customers give you their card or request a transfer, how does the money move? How are disputes resolved?
- Shadow an agent for a day: If possible, sit with a friend or relative already in the business. Seeing real-life operations will save you from rookie mistakes.
2. Raise Your Start-up Capital
You don’t need millions, but you’ll need some money to get going. Here’s a simple breakdown:
- POS machine: Price depends on your provider and the type of terminal.
- Float: This is the money you’ll use to pay customers withdrawing cash.
- Setup costs: Rent for a kiosk, umbrella, table, chair, or even a small shop if you want to look more established.
👉 To be safe, budget ₦100,000 – ₦300,000 to cover the machine, float, and basic setup.
3. Choose a Location That Brings Customers
Your location is a major factor in the success of your business. Even if you have the best machine, a poor location can ruin your business. That’s why when scouting, keep this in mind:
- Pick a place with constant foot traffic like markets, motor parks, or busy junctions.
- Go where banks and ATMs are scarce or unreliable. That’s where customers will run to you.
- Think safety and visibility. Customers won’t trust a dark corner.
Spend one or two days observing the area before committing. If you see people constantly queueing at another POS agent’s stand, that’s proof the area is hot.
Read: 8 Locations To Start or Relocate Your POS Business
4. Get a Reliable POS Machine
Your POS machine is your money-maker. Don’t just go with the first one you see. Do some research and look out for:
- Stable connection (fast approval, fewer “transaction failed” issues).
- Affordable charges (so you still make a profit).
- Good customer support (because issues will happen).
Some providers lease their machines, while others sell outright. Whichever you choose, make sure you understand the terms before signing up.
5. Keep Enough Float to Serve Customers
Float is your business lifeline. Imagine a customer comes to withdraw ₦20,000 but you only have ₦5,000 left — chances are they won’t come back the next time they need cash.
Here’s how to stay prepared:
- Start with at least ₦50,000 – ₦100,000 if you can.
- Keep some funds in your POS wallet and some in your bank. This way, you can top up quickly when one runs low.
- As your customer base grows, increase your float so you can serve bigger transactions without turning people away.
6. Get a Smartphone and Reliable Internet
Even though POS terminals have their own screens, you’ll still need a smartphone to:
- Track your wallet balance.
- Receive transaction alerts.
- Reach customer care quickly when disputes happen.
Pair that with stable internet. In Nigeria, no network is 100% reliable, so it’s wise to have at least two SIM cards handy.
7. Register Your Business(Optional but Smart)
At the beginning, you can start without registering. But if you’re thinking long-term, registering your business name with CAC is a smart move.
Why?
- It makes your business look more credible.
- You can open a business bank account.
- It protects your brand name.
Registration costs between ₦10,000 – ₦15,000 if you do it online.
8. Treat Customers Like Gold
This is the cheapest way to grow your business. People trust you with their money, so give them a reason to keep coming back.
- Greet and smile, even when you’re tired.
- Be quick and professional, especially during busy hours.
- Always print or write receipts — customers want proof.
Word-of-mouth spreads fast in Nigeria. A single happy customer can bring ten more.
9. Prepare for Power and Network Wahala
Let’s face it, power and network are not always reliable in Nigeria. If you’re not ready, you’ll lose money and customers.
- Get a small generator or power bank for backup.
- Have multiple SIM cards to switch when one network misbehaves.
If you want to start your POS business, here’s why many agents choose NowNow POS over others:
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Reliability: Transactions are processed quickly with fewer failures, so you don’t lose customers to “network wahala.”
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Security: Built with strong fraud protection and safe payment processing, giving both you and your customers peace of mind.
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Speed: Approvals happen fast, which means shorter queues and happier customers.
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Portability: The device is compact, easy to move around, and doesn’t tie you down to one location.
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With NowNow, you get more than just a machine. You get a trusted partner that helps you grow steadily. If you’re serious about building a POS business that lasts, this is the kind of provider you want behind you.
Conclusion
Being prepared keeps your business running smoothly when others shut down. Focus on the basics — know how it works, secure your float, choose a good location, and treat your customers right. Do these consistently, and you’ll build a business that pays you daily and grows steadily over time.