By: Amadi Vincent Uzoma
The total number of Point of Sale (PoS) machines put into use by businesses and individuals in Nigeria increased to 2.7 million in March of this year.
This information was revealed by the Nigeria Inter-Bank Settlement System (NIBSS) in their most recent release of electronic payment data.
This signifies a 50% growth compared to the same period last year, with 1.8 million terminals in operation.
As of March 2024, a total of 864,753 new PoS terminals have been deployed within the last year.
Nevertheless, the number of PoS machines in use is still below the total number of registered terminals.
Based on data from NIBSS, a total of 3.730 million PoS machines were registered nationwide by March 2024, indicating that 1.04 million terminals are yet to be deployed or have become inactive.
The value of transactions completed via PoS terminals in Nigeria has been steadily increasing over the years. However, the data from March 2024 indicates a decrease compared to the previous year.
According to NIBSS data, the value of PoS transactions in March was N961.8 billion, showing a 16.5% decline from the N1.15 trillion recorded in March 2023.
The peak in PoS transactions in March of the previous year was due to a unique cash shortage that prompted many Nigerians to adopt electronic transactions.
Besides the cash scarcity in 2023, the rise in PoS transactions in Nigeria can be attributed to several factors, including the rapid acceptance by businesses for receiving payments.
PoS machines are also helping to fill the gap left by the limited number of ATMs provided by banks, as many Nigerians now use PoS agents for withdrawals.
Moreover, the over 1.9 million PoS operators in the country are currently facing a new requirement to register their businesses with the Corporate Affairs Commission (CAC) by July 7. Numerous operators, mainly small businesses, are concerned that this registration is adding unnecessary pressure to their operations.
Elegbede Oluwasegun, the National General Secretary of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), stated that PoS operators plan to legally challenge the validity of this directive.
Contrarily, Hussaini Magaji, the Registrar-General of the CAC, emphasized that the registration complies with legal obligations and the directives of the Central Bank of Nigeria (CBN).
He clarified that the registration is backed by Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020, as well as the 2013 CBN guidelines on agent banking. Magaji noted that the registration aims to protect the businesses of fintechs and customers, while also strengthening the economy.
