ECONOMY
By PETER AWUA
Agent banking is quietly reshaping Nigeria’s financial landscape. In major cities and even in remote villages, a gradual revolution is unfolding as Point of Sale (POS) operators—seen in kiosks, under umbrellas and in shops—become significant contributors to the nation’s financial system. These micro-entrepreneurs are not merely enabling financial transactions; they are boosting commerce, supporting small businesses and creating jobs for the ever-growing population of unemployed Nigerians.
Job creation, rising financial inclusion
The unemployment gap that these bank agents are bridging has led to a rapid increase in POS outlets nationwide. According to statistics from the Central Bank of Nigeria (CBN), the number of registered POS agents as of March 2025 has grown to over 8.3 million, thereby creating jobs for thousands of people who are not opportune to be gainfully employed in government agencies or other private companies across the country.
More so, the ease of starting a POS business is another contributing factor that has facilitated the growth of the sector. With minimal capital to purchase the machine and maintain a small cash float for transactions, the barrier to entry is low enough to give room for many to become entrepreneurs.
According to Jude Ejikeme, a POS operator in Farin-Gada, “With ₦50,000, one can start a POS business but the more money you have, the easier for one to succeed.”
Similarly, Miss Janet Yakubu, a POS operator at Sabon Layi, affirms that, “It depends on your business location and the capital at hand, but with ₦50,000, one can start a POS business.”
As regards income volume, Mr Abdulfatai Lukman, a POS operator along New Road, Farin-Gada, says it depends on the business location and the capital at hand. “If you are in a market area, your transaction volume will be different from someone who is in a residential area, but approximately, the income volume is above the minimum wage.”
A close examination of the sector’s impact on financial inclusion reveals that over 40% of Nigerians remain unbanked, according to a report by the World Bank. But POS agents are bringing financial services to underserved areas, especially rural communities. They are enabling rural dwellers to open accounts, save money and access credit loans.
“The availability of POS agents has enabled me to have a bank account,” says John, a POS user at Assak village. “Personally, I never dreamt of opening an account since the banks are far from our reach. The nearest bank around here will require one to spend no less than ₦2,000 to get things done at the bank, but as it is now I have an account, and I hardly go to the banks. POS are doing everything for us.”
Also speaking, Patience, another POS user at Hwollaza, explains that POS saves time and money. “In less than 5 minutes you can access your cash, but if you are to go to the bank from where I am now, you will spend ₦500 for transportation aside from the time you will spend there.”
Challenges facing POS operators
However, despite the immense benefits attributed to POS operations, there are also a lot of challenges attached. For somebody that is not learned, balancing an account will be an issue, says Lukman, a POS operator. “Imagine a situation whereby you miscount money and overpay a customer; it will be a great loss on your part.”
Other challenges, according to him, include network failure, fraudulent activities by some customers, embargoes on cash withdrawals from banks, as well as taxes by the government.
Lamenting on the challenges, Mr Lukman says getting cash is a major problem. “If you are using savings or current account, the banks allow you to withdraw ₦500,000 only in a whole week, which may limit your services. But if you are using a corporate account, you can withdraw up to ₦5,000,000 depending on your capital, and the charges that come with corporate accounts is another issue as the banks charge ₦2,000 for every ₦1,000,000.”
POS, like any other business, has numerous challenges, yet these challenges cannot undermine the merits of this sector to the economy. From easing access to financial services, to creating jobs and supporting small businesses, POS operations have grown into a powerful force driving Nigeria’s economic transformation.
Awua is a University of Jos student on IT with THE NIGERIA STANDARD