Point of Sale transactions in Nigeria surged to N223.27 trillion in 2024, marking a 102.3 percent increase from N110.35 trillion in 2023, according to the Central Bank of Nigeria’s latest quarterly statistical bulletin.
The data reflects a growing preference among Nigerians for POS platforms over traditional Automated Teller Machine withdrawals.
The number of POS transactions also rose significantly, climbing from 9.85 billion in 2023 to 13.08 billion in 2024—a 32.7 percent jump. In contrast, ATM transactions showed minimal growth, increasing only slightly from 1.012 billion to 1.022 billion during the same period. The total value of ATM withdrawals grew modestly to N29.12 trillion from N28.21 trillion.
Financial experts attribute this shift to the convenience and accessibility offered by POS agents, especially under Nigeria’s expanding agency banking framework. “The figures show a clear behavioural change,” said Ibrahim Yusuf, a financial analyst. “Nigerians now favour quick, nearby POS services over queuing at ATMs, especially in rural and suburban areas.”
The year saw consistent growth in monthly POS usage. In January 2024 alone, Nigerians carried out POS transactions worth N11.50 trillion—more than double the N5.28 trillion recorded in January 2023. December recorded the highest POS value of the year at N31.84 trillion, while ATM usage peaked at N3.91 trillion—still significantly behind POS volumes.
However, the POS boom has not come without growing pains. During the December festive period, widespread ATM cash shortages forced many consumers to rely on POS agents, some of whom charged as much as N200 to withdraw N5,000.
“It was frustrating,” said Lagos resident Ifeoma Chukwu. “Banks had no cash, ATMs weren’t working, and POS agents were our only option—at a high cost.”
In response, the CBN imposed fines totaling N1.35 billion on nine commercial banks, including First Bank, Zenith, UBA, and Sterling Bank, for failing to ensure ATM availability during the holiday period.
The surge in POS usage has also raised concerns over rising fraud. The Financial Institutions Training Centre reported a 31 percent rise in POS-related fraud in Q1 2024, with 3,518 incidents—up from 2,683 in the previous quarter. POS fraud accounted for nearly a third of all 11,472 fraud cases reported during that period.
To address these issues, the CBN introduced stricter regulations to reinforce its cashless policy. Daily cash withdrawals through POS agents are now capped at N100,000 per individual, while each agent’s total daily transactions are limited to N1.2 million. Additionally, agents are mandated to use designated float accounts and report daily activity to the Nigerian Inter-Bank Settlement System, with principal financial institutions held accountable for violations.
“Regulation is necessary to maintain trust in the system,” said fintech analyst Amaka Nwachukwu. “The CBN’s efforts are timely, especially given the rapid expansion of agency banking.”
Despite the challenges, industry players say the POS trend is here to stay. Fintech companies such as OPay, Moniepoint, and Kuda—who collectively control about 70 percent of Nigeria’s POS market—are expected to play an even bigger role as the country deepens financial inclusion and transitions further into digital banking.
