The number of Point of Sales (POS) machines used by merchants and individuals across Nigeria increased to 2.7 million in March this year, according to the latest data from the Nigeria Inter-Bank Settlement System (NIBSS).
This marks a 50% rise compared to the same time last year, when there were 1.8 million terminals. This means 864,753 new POS machines were added over the past year. However, there are still fewer active POS machines than the total registered, which stands at 3.73 million. This indicates that about 1.04 million machines are either not yet in use or inactive.
POS transactions in Nigeria have been growing steadily over the years. However, in March 2024, the value of these transactions was N961.8 billion, a 16.5% decrease from N1.15 trillion in March 2023. The high figure in March last year was due to a cash shortage that pushed many Nigerians to use electronic payments more frequently.
The increase in POS transactions is driven by more merchants adopting these machines for payments and the shortage of ATMs, which has led many Nigerians to withdraw cash through POS agents.
On another note, over 1.9 million POS operators are now facing a new requirement to register their businesses with the Corporate Affairs Commission (CAC) by July 7 this year. Many small business operators are concerned that this requirement is adding undue pressure on them.
Elegbede Oluwasegun, the National General Secretary of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), stated that POS operators plan to take legal action against this directive. However, Hussaini Magaji, the Registrar-General of the CAC, defended the registration requirement, saying it aligns with legal standards and the directives of the Central Bank of Nigeria (CBN). He explained that the registration aims to protect fintech businesses and customers, and to strengthen the economy.
