The cost of Point-of-Sale (PoS) terminals in Nigeria has skyrocketed, increasing by 30% to 100% within the last two years.

September 30, 2025

The cost of Point-of-Sale (PoS) terminals in Nigeria has dramatically surged by 30% to 100% between 2023 and 2025. This significant price jump is directly tied to adverse macroeconomic conditions and is reshaping the operational models of the country’s booming agency banking sector.

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Key Drivers of the Price Surge

The increase in PoS terminal costs, which has seen advanced devices nearly double in price from N30,000–N40,000 to N62,000–N85,000, is attributed to a combination of factors:

Naira Depreciation (FX Pressure): This is cited as the major factor. Since all PoS terminals are imported (no local production), their cost is directly exposed to foreign exchange fluctuations. The Naira’s sharp depreciation from approximately N500/$ in early 2023 to around **N1,500/$ in 2025** dramatically increased the local currency cost of importation.

High Inflation: General inflation in Nigeria, which reached a record high of 34.60% in November 2024 before moderating, drove up logistics and operational expenses for fintech companies.

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Increased Logistics Costs: Higher costs associated with shipping, distribution, and warehousing contributed to the final retail price of the devices.

Impact on Agency Banking and Financial Inclusion

Despite the surging costs, the demand for PoS services remains resilient, with the number of registered terminals reaching 8.3 million by March 2025. However, the price increase has had several effects:

Segment	Impact
Aspiring Agents	The cost of entry into the PoS business has become significantly higher, creating a major barrier for small entrepreneurs and limiting opportunities.
Existing Operators	Operators with multiple outlets are struggling to expand aggressively due to the higher capital required for new machines.
Fintech Companies	Fintechs are adjusting their pricing models to balance affordability with sustainability. This includes:<ul><li>Raising the required caution deposit fee, as giving out Android PoS for an initial N20,000 caution is “no longer realistic.”</li><li>Shifting to leasing models, where fintechs retain ownership of the device but demand higher transaction volumes from agents.</li></ul>
Financial Inclusion	While the business is now more expensive to start, PoS terminals remain the closest access point to formal financial services for millions of Nigerians, especially in underserved areas, meaning demand is expected to continue regardless of the cost.

The consensus from the fintech sector is that while they are absorbing some of the costs to push for financial inclusion, the lack of local hardware manufacturing leaves them with limited ability to prevent price hikes driven by currency volatility.

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