PoS growth slows as Nigeria’s payments market enters new phase

Nigeria’s point-of-sale (PoS) market is showing signs of transition after several years of rapid expansion, suggesting a shift from coverage-driven growth to a more economically complex phase for companies operating across the payments value chain.

From about 156,000 terminals in 2017, deployed PoS devices increased to an estimated 8.4 million by early 2025, reflecting a profound change in how retail payments are conducted across the economy.

Data from the Nigeria Inter-Bank Settlement System (NIBSS) reveals that PoS terminals led to a record transaction value of over N10.5 trillion in the first quarter of 2025 alone. However, the pace of terminal deployment has begun to moderate. “By March 2025, there were 8.36 million registered PoS terminals, with 5.9 million active or deployed,” noted Fasasi Sharafadeen, national president of the Association of Mobile Money and Bank Agents of Nigeria (AMMBAN). While this represents a 119 percent rise from the previous year, analysts note that the “triple-digit” hyper-expansion seen in 2024 is tapering as urban centers reach saturation

This shift has significant implications for the economics of the payments ecosystem. As terminal density increases, competition among agents and service providers is intensifying, placing pressure on transaction pricing and commissions. Chika Nwosu, Managing Director at PalmPay, recently highlighted the shift in focus toward system reliability rather than just footprint. “Mobile money wasn’t always perceived as viable, but we identified a core problem: system reliability… we invested in technology that’s efficient and reliable,” Nwosu stated during a 2025 industry briefing, noting that his firm now processes 15 million daily transactions with a 99.5 percent success rate.

The trend presents a nuanced earnings outlook for traditional banks. While higher PoS usage supports transaction volumes, the financial benefits are becoming less direct as banks bear the brunt of rising operational costs. According to a 2025 report by Agusto & Co., Nigerian financial institutions lost N52.3 billion to fraud in 2024, emphasizing the “need for robust cybersecurity measures and real-time monitoring” that eat into thin margins.

Furthermore, the scale of the PoS network has invited unprecedented regulatory oversight. The Central Bank of Nigeria (CBN) recently introduced a N1.2 million daily withdrawal limit for PoS operators and a mandate for all terminals to be geotagged to their registered business addresses. “The move will strengthen the integrity of the agent banking system and promote financial inclusion,” the CBN stated in its 2025 circular, though some operators warn these measures could force a consolidation of the market.

The data suggests Nigeria’s PoS market is entering a more mature stage. Growth remains substantial in absolute terms, but the conditions that underpinned the earlier expansion, primarily rapid network build-out, are evolving into a battle for efficiency and regulatory compliance.