The cost of Point-of-Sale (PoS) terminals in Nigeria has risen sharply between 2023 and 2025, with increases ranging from 30 per cent for entry-level devices to as much as 100 per cent for high-end smart terminals. The surge, driven by inflation, foreign exchange pressures, and rising logistics costs, is reshaping the country’s rapidly growing agency banking sector.
Entry-level PoS machines that once cost N15,000–N20,000 now go for around N21,500, while advanced Android and smart devices have doubled from N30,000–N40,000 to between N62,000 and N85,000. Despite the increase, demand remains strong, especially in underserved areas where PoS machines serve as the primary gateway to financial services.
According to the Nigeria Inter-Bank Settlement Systems (NIBSS), the number of registered PoS terminals reached 8.3 million as of March 2025. While commercial banks supply some devices, fintech companies dominate the market, onboarding more agents and expanding services.
“The dollar rate is a major factor in all these. Currently, there is no locally produced PoS; all are imported, and the price has to reflect exchange rates,” said an official from a leading fintech company who requested anonymity. “Even today’s prices don’t fully reflect costs because we prioritize financial inclusion, sometimes absorbing extra expenses to keep PoS terminals accessible.”
Mr. Michael Adewale, a PoS dealer, added that fintechs have adjusted pricing models to balance affordability with sustainability. “Before, Android PoS could be supplied at N20,000 caution, but that’s no longer realistic. Now, merchants either pay outright or deposit higher caution fees,” he said.
The price increases present challenges for aspiring PoS agents and operators with multiple outlets, making business expansion more difficult. Some companies are adopting leasing models, retaining ownership of devices but requiring higher transaction volumes from agents.
Macroeconomic pressures are central to the surge. Inflation rose from 21.34 per cent in December 2022 to 34.60 per cent in November 2024, before moderating to 20.12 per cent in August 2025. Meanwhile, the naira has depreciated sharply to around N1,500/$ in 2025, compared to N500/$ in early 2023.
Despite rising costs, analysts say demand will remain robust, as PoS devices are essential for financial access in Nigeria’s cash-light economy. For millions of Nigerians in underserved areas, these terminals remain their closest link to formal banking services.
