| By: Francis Onyemachi
Divine Chukwu, a 34-year-old agent banking operator based in Idimu, Alimosho, Lagos, is considering leasing out his Point-of-Sale outlets after watching his daily earnings fall well below expectations, making it difficult to cover his daily expenses.
Chukwu, who owns and manages three PoS outlets, said operators who endured the difficult process of becoming agent bankers are no longer enjoying the rewards they once did because the market has become overcrowded.
“Today individuals, business owners and almost every industry have their own PoS terminals for cash transactions, while agents are left with very little profit because of market saturation.
“My friend introduced me to the PoS business after I lost my job and it became successful with little operators and low competition to the point that I started expanding and opening new branches. I employed workers. Our services have mastered almost everyone to the point that they now prefer paying charges at locations within their areas than paying transport to banks/ATMs only to end up in a long queue. Forward to today, you can’t make a single move without passing a POS machine,” Chukwu said.
What began as a profitable business for many Nigerians has gradually become a crowded market.
Beyond the major agency banking operators, thousands of small and medium-sized businesses now offer PoS services, further strengthening the role of agent banking as one of the country’s most accessible channels for cash withdrawals, transfers and bill payments.
According to data from the Nigeria Inter-Bank Settlement System (NIBSS), the number of PoS terminals deployed across the country rose by 127.07% to a record 5.56 million by the end of 2024, up from 2.45 million a year earlier.
NIBSS also reported that the value of PoS transactions reached about N18 trillion in 2024 before rising to N18.78 trillion in the first quarter of 2026, reflecting Nigerians’ increasing reliance on agent banking services.
Chukwu believes the Central Bank of Nigeria’s cashless policy introduced in 2023 accelerated the surge in PoS terminals.
“Many people thought the policy would create more opportunities for PoS agents because cash became scarce and commissions increased. But the opposite happened. The policy encouraged many businesses to acquire their own PoS machines, leaving independent agents with fewer customers. Banks and fintech companies also flooded the market with terminals,” he said.
In his words, what once required a rigorous registration process has now become commonplace. Customers who previously depended on PoS operators now pay directly with their bank cards at shops, reducing the number of people visiting agent banking outlets.
He compared the situation to the once-thriving recharge card business, where dealers made profits before digital banking and fintech platforms took over.
From the operators’ perspective, the quick expansion of agent banking, which helped strengthen financial inclusion, has also created an oversupply problem.
Across Lagos, it is now common to find several PoS kiosks operating within a short distance of one another. While transaction volumes continue to grow, individual operators say their earnings are steadily declining.
For Kingsley Odom, a Lagos-based PoS operator, the business has evolved from being a major source of income to becoming just one of several services he offers.
Faced with shrinking profits, he converted part of his shop into a cooking gas refill outlet.
“My shop was originally meant for my PoS business, but I had to diversify because I could no longer depend on it alone. The business was rewarding when I started, but the profit is no longer what it used to be. I worked as a sales assistant at a PoS outlet in Idimu in 2019 before starting mine. Today, PoS is still part of what I do, but it is no longer my main business,” Odom said.
How Fintech Expansion Changed the PoS Business
The rapid growth of Nigeria’s fintech sector has also contributed to the crowded market.
While many operators see this as a challenge, fintech expansion has strengthened Nigeria’s digital payment ecosystem and improved access to financial services.
Companies including Moniepoint, OPay, PalmPay and Paga have expanded their agency networks over the years, bringing banking services closer to underserved communities.
The expansion has helped bridge the shortage of bank branches nationwide while advancing financial inclusion.
NIBSS reported that the value of PoS transactions climbed by 79.03% to N18.78 trillion in the first quarter of 2026.
Data obtained from Financial Derivatives Company Limited (FDC), sourced from NIBSS, showed that PoS transaction values stood at N6.08 trillion in January 2026, increased to N6.58 trillion in February and reached N6.12 trillion in March, highlighting sustained demand for agent banking services despite growing competition.
Another operator, Nelson Anas, recalled when the business was highly profitable and provided stable income for many operators.
He said the decline began when businesses and regular customers started buying PoS terminals for their own use, reducing the need for independent agents.
“I have been in this business since 2018 because it was very profitable. At one point, I had about seven workers across different outlets. It was my main source of income and I comfortably took care of my family. But things have changed. Business owners who used to direct customers to us now have their own machines,” he said.
Anas said he was forced to shut down several of his outlets last year because he could no longer afford to pay workers.
“Now I operate just one outlet by myself while looking into other businesses. PoS terminals have become almost like household items. It is difficult to find a family involved in business or trade that does not own one,” he added.
Despite the challenges facing operators, PoS agents have become a vital part of Nigeria’s financial system, especially in areas with limited access to bank branches. Millions of Nigerians are highly reliant on them to provide quick access to cash withdrawals, transfers and bill payment services.
