In Nigeria, the cost of Point-of-Sale (PoS) terminals has skyrocketed between 2023 and 2025, with price hikes ranging from 30% to 100%, driven by economic challenges such as inflation, foreign exchange fluctuations, and rising logistics expenses. This surge is significantly impacting the country’s booming agency banking sector, a critical component of financial inclusion in underserved regions.
Escalating Prices Across the Board
Basic PoS terminals, previously priced between N15,000 and N20,000, now cost around N21,500. More sophisticated Android and smart terminals have seen even steeper increases, jumping from N30,000–N40,000 to N62,000–N85,000. The rising costs are creating barriers for new entrants into the PoS business, a popular avenue for young entrepreneurs in Nigeria.
Demand Remains Strong Despite Challenges
Despite the price increases, demand for PoS terminals continues to grow, fueled by their role as a primary access point to financial services in areas with limited banking infrastructure. According to the Nigeria Inter-Bank Settlement Systems (NIBSS), the number of registered PoS terminals reached 8.3 million by March 2025, reflecting the sector’s critical importance in Nigeria’s increasingly cash-light economy.
Fintechs Grapple with Economic Pressures
Nigeria’s PoS market is largely driven by fintech companies such as OPay, PalmPay, Moniepoint, and Nomba, which are expanding their agent networks to meet demand. However, these firms face challenges in keeping terminals affordable. A senior official from a leading fintech, speaking anonymously, highlighted the impact of currency volatility, noting that all PoS devices are imported, making them subject to exchange rate fluctuations.
“We’re focused on financial inclusion, so we absorb some of the costs to keep terminals accessible,” the official said. “But the dollar rate and logistics expenses make it tough.”
To adapt, some fintechs have shifted to new pricing models. Michael Adewale, a distributor for multiple fintechs, explained that the days of offering Android PoS devices for a N20,000 caution fee are over. Many merchants now face higher upfront costs or increased caution deposits, while some companies are introducing leasing models that require agents to meet higher transaction volumes.
Macroeconomic Drivers
The price surge is rooted in Nigeria’s economic challenges. Inflation climbed from 21.34% in December 2022 to a peak of 34.60% in November 2024, before easing to 20.12% in August 2025. Meanwhile, the naira’s value has plummeted, moving from N500/$ in early 2023 to around N1,500/$ in 2025. With PoS terminals being imported and no local manufacturing in place, fintechs are heavily exposed to global supply chain costs and currency depreciation.
Implications for Entrepreneurs and the Market
The rising cost of PoS terminals is making it harder for small-scale entrepreneurs to enter the agency banking sector, which has been a vital source of income for many Nigerians. Operators managing multiple outlets are also feeling the pinch, as expansion becomes more expensive. Despite these challenges, analysts predict that demand for PoS services will remain robust, given their essential role in facilitating financial transactions in underserved communities.
Fintechs are exploring innovative solutions, such as flexible payment models and refundable deposits, to maintain accessibility. However, the era of low-cost PoS businesses may be fading, signaling a shift in the economics of Nigeria’s agency banking sector.
