Writer and Social entrepreneur.

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After three solid years since POS was introduced into this country, it is sad to know that according to a report, Nigeria stills ranks on a far 7th on POS transactions in Africa with country like Ghana and South Africa far above. According to a report by Indexmundi only 21 percent of total transactions in the country are done through the PoS device.

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According to Central Bank of Nigeria (CBN), the PoS density per 100,000 people in Nigeria is 13, while India’s is 67; Uganda, 453; Namibia, 338. It might also feel good to know that Nigeria has a target, and that is to meet Brazil’s PoS deployment rate of 2,247 per 100,000 people by 2020. The only headache here is that proper moves are not being made to meet the stipulated target.

On what may be the reason behind this number, Kevin Chung of Avante International Technology, at the just concluded CashlessAfrica Expo, said that while the communication network and bandwidth are adequate, the data centres in the financial communities in Nigeria needs to upgrade from Tier 1-2 to Tier 3-4 to enable the cash-less economy.

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But if you ask me for a reason, I’d tell you that it is the fear of Nigerians to trust a new payment system. We are already fully engrossed in the cash payment system that it took some time to even accept the online payment fully. And may I note that it has not been fully accepted in the country YET.

“There is high percentage of unbanked in the country and uneven access to money, these hobbles cashless initiative in the country.” These were the words of Tunde Ogungbade, managing director, Global Accelerex Limited, who said that cash places a huge toll on GDP and that in Nigeria cost of cash management is projected by CBN to be N250billion by 2020.

He also added that a cashless future must serve society at large, and that it cannot be about corporate interest, governmental control or surveillance and monitoring. “It must be about providing endless consumer choice for payment”.

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Well, to me, I think a lot of awareness should be done on how safe payment with a PoS could be, because as an average Nigerian, I fear to part with my money without getting any value in return.


  1. I totally agree with your sentiments in this post. Just like you stated, speakers at the cashless africa expo were on point about what needs to be done to make the cashless initiatives in Nigeria go mainstream.

    Also at the event, one of the speakers shared insights about how their company – http://www.VoguePay.com – helped over 40,000 local and international SMEs leveraged their platform to accept payment online and connect with a broader audience.

    At the end of the day, it is not only government that reaps the benefit of the cashless society, businesses can benefit a lot from it by reaching new audiences beyond their physical location with their products.

    1. You’ve said it well sir. But maybe a lack of awareness has limited most of Nigerians who could actually enjoy the benefit you have stated above.

  2. I believe it’s the awareness of this machine that has reduced its usage after all these years. Most Nigerians prefer going with cash rather than ATM cards.

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