The business of Point of Sale (PoS) in Nigeria has never been more critical to financial inclusion. For millions of Nigerians, especially in underserved communities, PoS agents have become the closest link to the banking system. Yet, for aspiring agents, the cost of entering this fast-growing sector has risen sharply, creating new barriers and reshaping business models.
Between 2023 and 2025, the cost of PoS terminals surged by 30 percent at the lower end and up to 100 percent for high-end devices. Entry-level machines that once cost N15,000 to N20,000 now retail for around N21,500. More advanced Android and smart terminals, previously priced between N30,000 and N40,000, now sell for N62,000 to as high as N85,000.
The Rising Costs Behind the Boom
The sharp increase in costs is tied directly to Nigeria’s macroeconomic climate. Inflation climbed from 21.34 percent in December 2022 to a record 34.60 percent in late 2024 before moderating to 20.12 percent by August 2025. At the same time, the naira depreciated dramatically, now hovering around N1,500 to the dollar compared to N500 to the dollar in early 2023.
With all PoS machines imported, the pressures of foreign exchange and global logistics have left fintechs with limited room to absorb costs. The absence of local hardware manufacturing means Nigeria remains exposed to currency swings and rising international shipping fees.
What Fintechs Are Saying
While commercial banks also distribute PoS devices, the market is largely dominated by fintech companies such as OPay, PalmPay, Moniepoint, and Nomba. These firms are aggressively pushing devices into the market while adjusting pricing models to balance affordability with sustainability.
A senior official at a leading fintech, who asked not to be named, explained that the price increases are unavoidable:
“The dollar rate is a major factor. There is no locally made PoS. All are imported, and the costs must reflect the exchange rate. In fact, today’s prices are still below real costs because we try to keep them affordable for financial inclusion.”
Dealers also confirm that fintechs have shifted away from older models of subsidized distribution. “Before now, some Android PoS terminals were given out at just N20,000 caution deposits. That is no longer sustainable. Most agents now either pay outright or provide higher deposits,” said Michael Adewale, a PoS dealer.
Impact on Agents and Small Businesses
The rising cost of devices has created significant barriers for young Nigerians eager to enter one of the country’s fastest-growing small business sectors. Existing operators who want to expand their networks also face challenges as higher device prices slow aggressive rollouts.
Some fintechs are experimenting with leasing models, where the company retains ownership of the terminal but requires agents to commit to higher transaction volumes. While this eases upfront costs, it also places performance pressure on operators.
Demand Still Strong Despite Rising Costs
Despite the challenges, the demand for PoS services continues to climb. Data from the Nigeria Inter-Bank Settlement System (NIBSS) shows that the number of registered PoS terminals reached 8.3 million by March 2025. This growth reflects the central role of PoS in Nigeria’s evolving cash-light economy.
For millions of Nigerians in rural and peri-urban areas, PoS terminals remain the most accessible gateway to financial services. Analysts believe that while higher costs may slow new entrants, the overall demand for PoS transactions will remain resilient.
What This Means for the Future
The price surge signals a new phase in Nigeria’s agency banking industry. Starting a PoS business is no longer as cheap or frictionless as it was two years ago. However, the long-term outlook remains strong. As financial inclusion deepens, and if local production of terminals becomes possible, Nigeria may see costs stabilize.
For now, the sector will continue to expand, but with higher entry thresholds. The winners will be fintechs that can innovate around pricing, agents who can adapt quickly, and entrepreneurs who recognize that despite the rising costs, PoS remains one of the most relevant small business opportunities in Nigeria’s digital economy.
