Nigeria’s PoS Terminals Reach 3.04 Million In July 2024, Says NIBSS

The number of Point of Sale (PoS) terminals across Nigeria increases to 3.04 million as of July 2024, according to the Nigeria Inter-Bank Settlement System (NIBSS). This marks a 32% rise from 2.3 million in the same period last year.

The latest data reveals that 744,533 new PoS terminals are deployed between August 2023 and July 2024. However, this figure remains below the total number of registered terminals. As of July 2024, NIBSS reports a total of 4.06 million registered PoS machines, indicating that about 1.02 million terminals are either not yet deployed or inactive.

The value of PoS transactions in Nigeria reaches N1.01 trillion, reflecting a significant shift towards cashless payments. This figure shows a marked increase from N930.76 billion in June 2024 and N923.37 billion in July 2023, driven by the expanding network of PoS terminals.

In March 2023, transaction values peaked at N1.15 trillion, largely due to a cash shortage that led many Nigerians to opt for electronic payments. The ongoing growth in transactions is fueled by rapid merchant adoption and the convenience of using agents for withdrawals, especially amid limited Automated Teller Machines (ATMs).

To strengthen the monitoring of electronic transactions, the Central Bank of Nigeria (CBN) recently issues new guidelines for Payment Service Providers (PSPs), requiring compliance with enhanced routing procedures for PoS transactions. This directive, announced on September 11, 2024, is part of CBN’s initiative to diversify the Payment Terminal Service Aggregator (PTSA) model.

The Corporate Affairs Commission (CAC) is also addressing the registration of operators, having recently surpassed its compliance deadline. The CAC plans to take strict measures, including shutting down unregistered PoS businesses, amid concerns over potential illegal activities among unregistered operators.