The Point-of-Sale (PoS) industry in Nigeria has evolved into one of the most dynamic sectors in the country’s financial services ecosystem. Driven by the rapid adoption of digital payments, the surge of fintech players, and regulatory reforms by the Central Bank of Nigeria (CBN), PoS services have become a backbone for cash withdrawals, retail transactions, and financial inclusion. As of 2024, the industry processed approximately ₦18 trillion in transaction value, supported by over 5.5 million deployed terminals and nearly 8 million registered devices. This trajectory suggests an even larger role for PoS systems in Nigeria’s payment landscape by 2026. This report explores the current market size, identifies key players, examines the drivers of growth, and provides a forward-looking forecast of Nigeria’s PoS business through 2026.
Market Overview
Transaction Volume and Device Deployment
In 2024, PoS transaction value grew by nearly 70% compared to 2023, reaching about ₦18 trillion. This remarkable growth reflects both demand for convenient payment alternatives and aggressive terminal deployment by fintechs. From 2023 to 2024, the number of deployed terminals doubled from 2.4 million to 5.5 million, while registered terminals increased from 3.5 million to 7.8 million. Active usage also expanded, with more than 3 million devices transacting monthly by mid-2024. This growth was fueled partly by cash scarcity episodes in early 2023, which forced millions of Nigerians to adopt electronic payments, and partly by the strategic expansions of major fintech firms.
Key Market Actors
Fintech Leaders
- OPay: The market leader, with over 560,000 registered PoS agents by the end of 2022. Its agent network continues to grow, supported by its broad ecosystem that combines wallet services, bill payments, and merchant solutions.
- Moniepoint: With more than 300,000 agents in 2022 and reportedly 800,000+ by 2025, Moniepoint has emerged as a formidable competitor, leveraging its strong infrastructure and business banking solutions.
- PalmPay: Supported by global investors, PalmPay has rapidly scaled to half a million agents and more than 35 million users by 2025, positioning itself as a strong player in agent banking and SME support.
Bank-Backed Networks
- FirstMonie (First Bank): With over 160,000 agents, First Bank’s PoS network is one of the largest among traditional banks.
- Other banks such as Access Bank, Ecobank, FCMB, and Union Bank also maintain notable agent footprints, though fintechs have overtaken them in scale and reach.
Infrastructure and PTSPs
The backend of Nigeria’s PoS ecosystem is supported by Payment Terminal Service Providers (PTSPs) and aggregators licensed by the CBN. These include:
- Interswitch (over 200,000 deployed terminals and the Quickteller agent network),
- eTranzact (65,000+ active terminals),
- Global Accelerex (35,000+ terminals),
- Unified Payments and others.
These players ensure connectivity, switching, and compliance with evolving regulatory standards.
Market Trends Shaping the Industry
Regulatory Realignments
The CBN has issued several directives that are reshaping the PoS market:
- Mandatory routing of transactions through licensed Payment Terminal Service Aggregators (PTSAs).
- Daily cash-out limits for agents (₦100,000 per customer, ₦1.2 million cumulative per agent).
- Geo-tagging and geofencing requirements to curb fraud and ensure terminals are used within a 10-metre radius of their registered location.
These measures aim to improve transparency, enhance consumer protection, and align Nigeria with global financial compliance standards.
Financial Inclusion
PoS agents have become Nigeria’s most visible face of financial inclusion. They provide services in semi-urban and rural areas where bank branches are sparse. As of 2024, millions of Nigerians rely on PoS outlets for withdrawals, deposits, bill payments, and remittances.
Fintech Competition
The race between fintech giants like OPay, Moniepoint, and PalmPay is intensifying. Each player is investing in agent onboarding, app integrations, and loyalty programs to dominate market share. This competition has lowered transaction costs and improved service delivery for consumers.
Consumer Behaviour
PoS is increasingly viewed not just as a cash-out channel but as a complete payment solution. Retail stores, supermarkets, and SMEs are embedding PoS services into their daily operations, further boosting usage volumes.
Forecast for 2026
Based on current growth rates and regulatory alignment, Nigeria’s PoS market is poised for continued expansion:
- Transaction Volume: Expected to surpass ₦30 trillion annually by 2026, reflecting both organic demand and the digitization of payments across sectors.
- Deployed Terminals: Could exceed 10 million devices, with 6–7 million active monthly.
- Agent Network: Fintechs may collectively manage over 1.5 million active agents, while banks and microfinance institutions continue to support niche and regional markets.
- Technology Evolution: Adoption of ISO 20022 messaging, GPS-enabled devices, and real-time analytics will make Nigeria’s PoS ecosystem more transparent and efficient.
- Challenges: Compliance costs for small agents, potential pushback against strict geofencing rules, and persistent power and connectivity issues in rural areas may slow progress.
Nonetheless, the structural shift toward electronic transactions is irreversible, and PoS will remain central to Nigeria’s cash-lite economy vision.
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