The Rising Cost of PoS Terminals in Nigeria: A Challenge for Financial Inclusion

The cost of Point-of-Sale (PoS) terminals in Nigeria has witnessed a significant surge, with prices increasing by 30% to 100% within the last two years. This sharp increase is attributed to various macroeconomic factors, including inflation, foreign exchange volatility, and rising logistics costs.

Previously priced between N15,000 and N20,000, these machines now sell for around N21,500.
The cost of these terminals has doubled, from N30,000 to N40,000 to a new range of N62,000 to N85,000.

The depreciation of the naira against the dollar has significantly contributed to the price increase, as all PoS terminals are imported.
Nigeria’s inflation rate, which reached a record high of 34.60% in November 2024, has driven up logistics and operational expenses for fintech companies.
Higher costs associated with shipping, distribution, and warehousing have also contributed to the final retail price of PoS terminals .

Despite the price surge, demand for PoS services remains resilient, especially in underserved areas where these devices serve as the primary access point to financial services. The number of registered PoS terminals in Nigeria has reached 8.3 million as of March 2025, according to the Nigeria Inter-Bank Settlement Systems (NIBSS) .Fintech companies are modifying their business models to accommodate the rising costs. Some are:
Requiring higher transaction volumes from agents while retaining ownership of devices.
Some companies are absorbing part of the expense to promote financial inclusion and maintain terminal affordability .