For many Nigerians, withdrawing money no longer starts with searching for the nearest bank or ATM. Increasingly, the first option is the POS operator around the corner.
From busy markets and motor parks to residential streets and small shops, POS agents have become a major part of Nigeria’s everyday financial life. Their growing popularity is changing the way Nigerians withdraw cash, transfer money and pay for services.
The shift is supported by transaction data. According to the Central Bank of Nigeria (CBN), POS transactions reached ₦85.91 trillion in value during the first half of 2024, compared with ₦12.21 trillion recorded through ATMs during the same period. POS transaction volume also stood at about 6.4 billion, far above the roughly 496 million ATM transactions recorded.
The numbers show how strongly POS services have entered the daily lives of Nigerians.
One major attraction is convenience. A customer may not need to travel to a bank branch or stand in a long queue at an ATM. A nearby POS agent can often complete a withdrawal or transfer within minutes.
For many people, location matters.
“I prefer POS because there is usually one close to my house,” said a Lagos resident interviewed for this story. “If I go to an ATM and it is not dispensing cash, I have to look for another one. With POS, I can simply move to another agent.”
POS agents have also brought banking services closer to communities where bank branches and ATMs may be limited.
The CBN has described agent banking as a way of providing financial services through third parties on behalf of licensed financial institutions. The regulator has also introduced measures to strengthen oversight of the rapidly expanding agent-banking sector.
For POS operators, the business has become an important source of income.
“I started with a small shop, but POS brought more customers,” said a representative POS agent. “People come for withdrawals, transfers, airtime and other services, so it has become part of the business.”
The growth is not happening only because Nigerians dislike ATMs. POS services offer something ATMs often cannot: personal assistance.
A customer experiencing a failed transfer, for example, can immediately speak to the agent and try another transaction. That human interaction has helped POS operators build relationships with regular customers.
However, the POS boom comes with challenges. Customers continue to complain about transaction charges, failed transfers and occasional fraud. Agents also face risks from robbery, network failures and cash shortages.
ATMs, meanwhile, are far from disappearing. CBN data show ATM transactions also increased significantly in 2025, meaning Nigerians still rely heavily on the machines.
Still, the rapid expansion of POS services shows that Nigerians increasingly value accessibility, speed and convenience.
The ATM may remain an important part of banking, but the POS operator on the street has become a powerful competitor.
For millions of Nigerians, the question is no longer simply where their bank is located. It is increasingly about where the nearest reliable POS agent is.
