The total value of transactions conducted via Point of Sale (PoS) terminals in Nigeria rises to N18 trillion in 2024, marking the highest annual record to date.
Data from the Nigeria Inter-Bank Settlement System (NIBSS) confirms that this figure represents a 69% increase from the N10.7 trillion recorded in 2023. The growth is driven by persistent cash shortages at ATMs and the aggressive expansion of PoS terminals by financial technology companies.
Similarly, the volume of transactions climbs by 8% year-on-year, reaching 1.5 billion in 2024, compared to 1.4 billion in the previous year.
Fintechs Drive Rapid PoS Terminal Deployment
The expansion of PoS infrastructure accelerates significantly in 2024, with NIBSS data revealing that the number of deployed PoS terminals more than doubles to 5.5 million from 2.4 million at the end of 2023—a 129% surge.
Additionally, registered PoS terminals increase from 3.5 million in December 2023 to 7.8 million in December 2024, indicating that over 4.3 million new terminals enter the market within the year. However, a gap remains, as over 2 million registered devices are yet to be deployed.
Factors Driving PoS Growth
Analysts attribute the rising adoption of PoS payments to various factors, with limited cash availability at bank ATMs playing a significant role. Long queues, frequent cash shortages, and ATM downtimes push more Nigerians toward PoS transactions for payments and cash withdrawals.
“The increasing use of PoS terminals is filling a critical gap for many Nigerians who face difficulties accessing cash through traditional banking channels,” says Lagos-based financial analyst Adewale Adeoye. “Beyond payments, PoS terminals also extend financial services to underserved rural areas where bank branches are scarce.”
PoS Agents Provide Alternatives Amid Cash Scarcity
Initially, PoS services gain traction due to the shortage of ATMs in certain locations. However, the growing issue of cash unavailability in ATMs further positions PoS agents as an alternative for bank customers.
It is now common to find PoS agents operating near bank ATMs, offering withdrawal services when ATMs fail to dispense cash.
For fintech companies such as PalmPay, expanding PoS networks aligns with broader financial inclusion goals. “Our focus remains on deploying more PoS terminals across Nigeria’s 774 local government areas,” says PalmPay’s Head of Marketing and Communications, Femi Hanson. The company reports onboarding over 700,000 agents and continues to invest in expanding its PoS network nationwide.
Similarly, Moniepoint announces the deployment of over 800,000 PoS terminals and plans to introduce an all-in-one device integrating payment processing, inventory management, and transaction reconciliation. Meanwhile, OPay data shows that it has over 500,000 PoS agents operating across the country.
Economic and Social Impact of PoS Transactions
Industry experts highlight the broader economic impact of PoS transactions, noting that increased usage contributes to government revenue through the Electronic Money Transfer Levy (EMTL), applicable to transactions above N10,000.
“Many individuals and families now rely on PoS business as a source of income, benefiting from transaction fees,” Hanson explains. “Beyond financial inclusion, PoS operators provide convenience, particularly during cash shortages.”
Concerns Over Rising PoS Transaction Charges
Despite the benefits, rising PoS transaction fees remain a concern for many Nigerians, particularly in areas where cash availability remains limited.
In Lagos, for instance, withdrawal charges surge to as much as N500 per N5,000 transaction—significantly higher than the previous N100 to N200 range. Higher withdrawal amounts attract even steeper charges.
PoS operators, however, attribute the increased fees to the rising cost of sourcing cash, stating that they often purchase cash from alternative sources, including fuel stations, due to banks’ inability to meet withdrawal demands.
Electronic Transactions Hit N1.07 Quadrillion in 2024
In a related development, electronic payment transactions in Nigeria reach N1.07 quadrillion in 2024, setting an all-time record and surpassing the quadrillion mark for the first time.
According to NIBSS, this represents a 79.6% increase from the N600 trillion recorded in 2023. The NIBSS Instant Payment (NIP) platform continues to dominate electronic transactions, providing real-time interbank transfers across digital banking channels such as mobile apps, USSD, internet banking, PoS, and ATMs.