Nigeria’s PoS Transactions Surge to Record N18 Trillion in 2024

The value of Point of Sales (PoS) transactions in Nigeria reached a record high of N18 trillion in 2024, according to data from the Nigeria Inter-Bank Settlement System (NIBSS).

This represents a significant 69% increase compared to the N10.7 trillion recorded in 2023. The volume of transactions also saw an 8% year-on-year rise to 1.5 billion.

This surge in PoS usage is attributed to several factors, including persistent cash shortages at ATMs and the aggressive expansion of PoS terminal deployments by fintech companies.

PoS Terminal Deployment More Than Doubles

The number of PoS terminals deployed across Nigeria more than doubled in 2024, jumping by 129% from 2.4 million at the end of 2023 to 5.5 million. Registered PoS terminals also increased substantially, from 3.5 million in December 2023 to 7.8 million in December 2024, indicating 4.3 million new registrations. However, a gap of over 2 million registered but undeployed terminals suggests potential for further growth.

Drivers of PoS Growth

Several factors are driving the increasing adoption of PoS transactions. The persistent difficulty in accessing cash through traditional banking channels, such as ATMs, has been a major catalyst. Long queues, frequent ATM downtime, and cash unavailability have frustrated Nigerians, making PoS payments an attractive alternative.

The rise of PoS transactions has also addressed the need for cash withdrawals, effectively filling a gap left by malfunctioning ATMs. Furthermore, PoS agents have extended banking services to rural areas with limited bank accessibility, according to financial analyst Adewale Adeoye.

Fintechs Bridging the Cash Gap

Initially driven by a lack of bank ATMs in certain areas, the PoS business model has evolved to address the broader issue of cash unavailability, even when ATMs are present. It’s now common to see PoS agents operating near ATMs, providing an alternative when the machines are out of cash. Fintech companies like PalmPay have strategically deployed PoS agents to drive financial inclusion across Nigeria.

Source: Nairametrics