CHART: Nigeria’s PoS transactions surged to a record ₦18 trillion in 2024

For many Nigerians, withdrawing cash from an ATM has become a gamble—long queues, empty machines, and daily withdrawal limits have made cash access harder than ever. But while banks struggled, Point-of-Sale (PoS) agents thrived.

In 2024, Nigerians spent a record ₦18 trillion through PoS terminals, a staggering 69% jump from the ₦10.7 trillion recorded in 2023, according to NIBSS data. Transaction volume also climbed to 1.5 billion, an 8% year-on-year increase.

At the center of this surge was the fintech industry. The number of deployed PoS terminals more than doubled to 5.5 million in 2024, up from 2.4 million in 2023. Meanwhile, the number of registered PoS machines rose to 7.8 million in 2024, up from 3.5 million the previous year—an increase of 4.3 million new machines. Startups also aggressively expanded their agent networks to bridge the cash access gap left by traditional banks, with OPay (500,000 agents) and PalmPay (700,000 PoS agents), leading the charge.

But while the PoS boom brought convenience, it also came at a price—literally. Across major cities, like Lagos, cash withdrawals via PoS agents saw skyrocketing fees, with some transactions attracting charges of up to ₦500 per ₦5,000 withdrawal. With ATMs often empty, consumers had little choice but to pay up.

For the Nigerian government, however, the surge in PoS transactions meant more revenue. The Electronic Money Transfer Levy (EMTL), a ₦50 tax on transfers above ₦10,000, hit ₦31.2 billion in December 2024 alone, marking a 107% increase from November. With PoS now handling billions in daily transactions, the federal government is projecting ₦230 billion in EMTL revenue for 2025.

Regulators, too, have taken notice. The Corporate Affairs Commission (CAC) says it launched a registration drive, formalizing 100,000 PoS operators—though still far below the 250,000 target. Authorities hope this move will curb fraud and financial crimes, as PoS services have increasingly been linked to ransom payments and illicit financial flows.

As fintechs continue expanding their networks and banks struggle with cash shortages, PoS remains Nigeria’s most reliable ATM substitute. But it brings up a bigger question: Is this truly financial inclusion, or just another workaround for a broken system?