The use of Point of Sale terminals across Nigeria has experienced a significant increase, with transactions reaching a total value of N223.27 trillion in 2024.
This marks more than a twofold rise from the N110.35 trillion recorded in 2023, according to the latest quarterly statistical bulletin from the Central Bank of Nigeria.
This growth signals a notable shift away from traditional Automated Teller Machine withdrawals, as POS transaction volumes jumped from 9.85 billion in 2023 to 13.08 billion in 2024—a 32.7 per cent increase.
In contrast, ATM transactions showed minimal growth, with usage inching up from 1.012 billion to 1.022 billion.
The total value of ATM withdrawals also saw a modest increase, rising from N28.21 trillion in 2023 to N29.12 trillion in 2024.
The CBN report points to a growing reliance on POS agents, who now operate extensively across urban and rural areas through the agency banking model.
“The figures show a shift in how Nigerians are choosing to transact. Convenience and access to nearby POS agents seem to be driving this trend,” said financial analyst, Ibrahim Yusuf. “But the surge also brings along concerns around fraud and increasing service charges.”
POS usage maintained a consistent upward trajectory throughout the year. In January 2024 alone, the value of POS transactions soared to N11.50 trillion, more than double the N5.28 trillion recorded in January the previous year. Meanwhile, ATM withdrawals declined sharply to N2.15 trillion from N3.24 trillion.
The pattern persisted through the year, peaking in December with POS transactions valued at N31.84 trillion. During the same month, ATM usage also rose to N3.91 trillion—its highest point in the year—but still fell significantly short of POS figures.
However, the rapid rise in POS usage came with drawbacks. During the festive season in December, customers faced increased transaction charges, with some agents demanding up to N200 to withdraw N5,000. Simultaneously, widespread ATM outages due to cash shortages left many without alternatives.
“It was frustrating,” said Lagos resident Ifeoma Chukwu. “The banks didn’t have cash, ATMs weren’t dispensing, and the only option was POS agents, who were charging exorbitantly.”
In response, the CBN sanctioned nine commercial banks—including First Bank, Zenith, UBA, and Sterling Bank—with a total fine of N1.35 billion for failing to ensure ATM cash availability during the holiday period.
Security also became a growing concern. The Fraud and Forgeries Report by the Financial Institutions Training Centre (FITC) revealed that POS-related fraud increased by over 31 percent in Q1 2024. A total of 3,518 cases were reported, up from 2,683 in Q4 2023. These cases made up nearly a third of the 11,472 total fraud incidents recorded that quarter.
To address fraud and reinforce its cashless policy, the CBN has tightened regulations governing POS operations. A new directive now caps daily withdrawals through POS agents at N100,000 per individual and limits total daily transactions per agent to N1.2 million.
Furthermore, all POS agents are mandated to process transactions through designated float accounts and must report daily transaction records to the Nigerian Inter-Bank Settlement System (NIBSS). Financial institutions overseeing these agents will bear responsibility for any regulatory breaches.
“Regulation is necessary to maintain trust in the system,” noted fintech expert Amaka Nwachukwu. “The CBN’s move to tighten compliance is timely, especially with the explosion in agency banking and POS reliance.”
Despite challenges, experts anticipate the dominance of POS platforms will persist, driven by fintech players like OPay, Moniepoint, and Kuda, who collectively command about 70 percent of Nigeria’s POS market.
