-
Cost of PoS terminals jumps 30%–100% in two years
-
Rising inflation and naira depreciation blamed for surge
-
Fintechs adjust models as entry barriers grow for young agents
The cost of PoS terminals in Nigeria has skyrocketed over the past two years, climbing by as much as 100% for advanced machines and 30% for entry-level devices, reshaping the country’s booming agency banking sector.
Between 2023 and 2025, entry-level PoS machines that once sold for ₦15,000–₦20,000 now cost around ₦21,500, while advanced Android-based smart terminals have surged from ₦30,000–₦40,000 to between ₦62,000 and ₦85,000.
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
According to the Nigeria Inter-Bank Settlement Systems (NIBSS), the number of registered PoS terminals still grew to 8.3 million as of March 2025, underlining sustained demand despite cost spikes.
An official of a leading fintech, who requested anonymity, linked the rise to dollar volatility and logistics expenses.
“Currently, there is no locally produced PoS; all are imported, and the price has to reflect the exchange rates,” the official said.
Mr. Michael Adewale, a major dealer for fintech distribution, confirmed that companies have adjusted their pricing structures to remain sustainable.
READ ALSO: DSS Arraigns Omoyele Sowore Over Alleged Anti-Tinubu Posts
“Before now, some used to give out Android PoS at ₦20,000 caution, but that is no longer realistic. Now most merchants either pay outright or deposit a higher caution fee,” he said.
Some fintechs are now introducing leasing models, where agents use devices under stricter transaction requirements while companies retain ownership.
Macroeconomic Squeeze
Nigeria’s macroeconomic troubles fuel the surge. Inflation jumped from 21.34% in December 2022 to 34.60% in November 2024 before easing to 20.12% in August 2025, while the naira collapsed from ₦500/$ in early 2023 to around ₦1,500/$ in 2025.
With no local manufacturing capacity, fintechs remain hostage to foreign exchange swings and global supply chain costs.
For aspiring PoS agents, the higher costs are creating entry barriers into one of Nigeria’s fastest-growing small business opportunities. Operators with multiple outlets now struggle to expand, while young entrepreneurs face tougher start-up hurdles.
Despite the challenges, analysts insist demand will endure because PoS machines remain the closest access point to formal financial services in underserved areas.
