Point-of-sale (POS) terminals have overtaken automated teller machines (ATMs) as Nigerians’ preferred channel for accessing cash, with transactions surging to record levels as consumers increasingly rely on neighbourhood agents rather than bank branches or ATMs.
Data from the Nigeria Inter-Bank Settlement System showed that Nigerians carried out ₦10.51 trillion ($6.92 billion) worth of POS transactions in the first quarter of 2025, a 302% increase from ₦2.62 trillion ($1.72 billion) recorded during the same period a year earlier. The figures translate to an average of ₦116.79 billion ($76.9 million) processed daily, or about ₦4.87 billion ($3.2 million) every hour.
The surge reflects a dramatic shift in how Nigerians access cash. Since their introduction more than a decade ago, POS terminals have evolved from a supplementary banking service into the country’s dominant cash access channel, driven by their convenience, widespread availability and the declining reliability of ATMs.
By March 2025, Nigeria had 8.36 million registered POS terminals, of which 5.9 million were actively deployed. That represented a 119% increase from 2.69 million active terminals a year earlier. In contrast, the number of active ATMs declined to 16,714 in the first half of 2024 from 17,377 in the preceding six months, while the value of ATM transactions dropped 10% to ₦12.21 trillion ($8.03 billion).
The International Monetary Fund (IMF) estimates Nigeria has about 1,600 POS operators per square kilometre in some urban areas, making the service one of the country’s most accessible financial channels. With a population of roughly 216 million, there is approximately one POS terminal for every 26 Nigerians, compared with just 14 ATMs for every 100,000 adults.
Fintech companies have been the primary drivers of the expansion. Moniepoint says it operates more than one million active terminals and processes over ₦10 trillion ($6.58 billion) in transactions each month. PalmPay has onboarded more than 1.1 million businesses, while OPay says over one million merchants rely on its payment network. Their rapid rollout has helped extend financial services to underserved communities where traditional banking infrastructure remains limited.
The rapid growth has also presented new challenges. Authorities say the increasing volume of cash circulating outside the banking system could complicate monetary policy and liquidity management. POS agents have also reported growing cases of harassment and arrests after transactions conducted through their terminals were later linked to fraud, kidnappings or ransom payments, despite the agents not know the underlying crimes.
Even so, regulators remain cautious about imposing tougher restrictions, arguing that preserving financial inclusion remains a priority. With millions of Nigerians now depending on POS agents for everyday banking services, the sector has become a critical part of the country’s financial ecosystem, reshaping cash access and accelerating the transition away from traditional ATM-based banking.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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