With cash scarcity persisting at ATMs, Nigerians turned to PoS transactions, pushing figures to an all-time high of N18 trillion in 2024. But what’s driving this shift?
Nigerians are depending increasingly on point-of-sale (PoS) terminals for transactions, with the total value reaching a historic N18 trillion in 2024. The surge, attributed to persistent cash shortages at ATMs, marks a significant 69% rise from the N10.7 trillion recorded in 2023, according to data from the Nigeria Inter-Bank Settlement System (NIBSS).
The country has witnessed a rapid expansion in PoS terminals, largely driven by fintech companies such as Opay, Kuda, and Moniepoint. In 2024 alone, the amount of registered PoS devices grew by an impressive 129%, climbing from 2.4 million in December 2023 to 5.5 million by the end of 2024. Additionally, approximately 4.3 million new PoS machines were registered within the year, bringing the total number of machines to 7.8 million, surpassing the 3.5 million recorded the previous year.
Despite the sharp rise in registrations, a gap remains between registered and deployed terminals, with over 2 million devices yet to be put into operation.
Beyond the transaction value, PoS usage has also increased in volume. The number of transactions carried out via PoS terminals reached 1.5 billion in 2024, reflecting an 8% year-on-year rise from 1.4 billion in 2023.
Experts attribute the growing reliance on PoS payments to ongoing challenges in cash accessibility. Long queues at ATMs, coupled with frequent shortages, have made digital transactions more appealing to businesses and individuals alike.
As Nigeria continues its shift towards cashless transactions, fintech firms are expected to play an even bigger role in shaping the country’s financial landscape.
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