The cost of Point-of-Sale (PoS) terminals in Nigeria has more than doubled between 2023 and 2025, leaving thousands of operators struggling to keep their businesses afloat.
Entry-level PoS machines that previously sold for ₦15,000 – ₦20,000 now go for around ₦21,500, while advanced Android and smart terminals, once priced at ₦30,000 – ₦40,000, now sell for between ₦62,000 and ₦85,000.
Industry experts blame the sharp hike on foreign exchange volatility, inflation, and rising logistics costs, all of which have reshaped Nigeria’s booming agency banking sector.
Banks and Fintechs Raise Prices
Fintech giants such as Moniepoint, OPay, PalmPay, and Nomba—who dominate Nigeria’s PoS market—have all increased device prices, citing higher import costs.
A senior fintech executive explained:
“There is no locally produced PoS device; all are imported. With the naira falling from ₦500 per dollar in early 2023 to about ₦1,500 in 2025, prices had to reflect current exchange rates.”
Some fintechs have now adopted leasing models, keeping ownership of the devices while demanding higher transaction volumes from agents. Dealers are also demanding bigger caution fees, unlike in the past when devices were issued with deposits as low as ₦20,000.
Small Businesses Feel the Pressure
The rising costs are creating barriers for small entrepreneurs and young Nigerians, many of whom depend on agency banking as one of the country’s most lucrative small-scale ventures.
Existing operators looking to expand face tougher conditions, as acquiring new terminals has become far more expensive.
Although fintechs still provide flexible options like refundable deposits and outright purchases, the business is no longer as affordable as it was just two years ago.
Inflation and FX Take the Blame
According to MSME Africa, Nigeria’s inflation rose from 21.34% in December 2022 to a record 34.60% in November 2024, before easing slightly to 20.12% by August 2025.
Meanwhile, the naira’s crash from ₦500/$1 in 2023 to ₦1,500/$1 in 2025 has worsened the situation, since every PoS terminal in the country is imported.
Still Critical for Financial Inclusion
Despite the rising costs, demand for PoS services remains strong, especially in rural and underserved communities where they serve as the only access point to banking services.
Analysts believe this explains why many operators have also hiked their service charges in order to stay profitable.
GTBank Offers Relief
In a rare move to ease costs, Guaranty Trust Bank (GTBank) recently announced that it has removed processing fees on all its PoS terminals.
The bank said the initiative, which took effect on February 11, 2025, will eliminate Merchant Service Charges (MSC), giving businesses some relief amid rising operational costs.
Bottom line: PoS terminals remain vital for Nigeria’s financial inclusion drive, but rising costs driven by FX and inflation may continue to squeeze small operators unless local production or stronger regulatory interventions emerge.
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