As of July 2024, the number of Point of Sale (PoS) terminals deployed across Nigeria surged to 3.04 million, marking a 32% increase compared to the previous year, according to the latest data from the Nigeria Inter-Bank Settlement System (NIBSS). This growth reflects the country’s growing reliance on cashless transactions, with 744,533 new PoS terminals deployed between August 2023 and July 2024.
While the total number of registered PoS machines stands at 4.06 million, 1.02 million terminals remain either un-deployed or inactive. The value of PoS transactions also skyrocketed to N1.01 trillion in July 2024, up from N930.76 billion in June, signaling a steady shift towards electronic payments.
The surge in PoS transactions is linked to various factors, including the adoption of PoS by merchants for payments and the growing gap in Automated Teller Machines (ATMs), as PoS terminals have become a crucial withdrawal point for many Nigerians. Additionally, a notable surge in PoS usage was observed during the 2023 cash scarcity, which led to a sharp rise in electronic payments.
In response to this rapid growth, the Central Bank of Nigeria (CBN) issued new guidelines to Payment Service Providers (PSPs) in September 2024, aimed at improving the monitoring of PoS transactions. The Corporate Affairs Commission (CAC) has also begun cracking down on PoS operators failing to register their businesses, emphasizing the need for regulatory compliance.
The rapid expansion of PoS terminals and the growing transaction volumes highlight the increasing shift towards digital payments across Nigeria.
