At the entrance of the bustling Wunti Market in the heart of Bauchi metropolis, Ada, a 44-year-old hairdresser, sits by her small shop with her Point of Sale (PoS) machine clearly visible on the counter.
What was once a cash-only business for Ada has now embraced digital transformation, thanks to the rise of PoS technology in Nigeria, driven by the Central Bank of Nigeria’s (CBN) deregulation of the financial sector to promote a digital and cashless economy.
When asked about her experience, Ada shared, “Since I started using this PoS, it has helped me avoid carrying cash,” as she glanced at the queue of customers waiting for hairdressing services.
Ada quickly recognised that the value of PoS technology in her business lies not only in facilitating digital and cashless transactions but also in enhancing the safety and security of her hard-earned investment. Operating a cash-based business had previously exposed her to the risks of theft and harassment.
“And you know how Nigeria is now in terms of security. It has really helped me secure my money,” Ada told LEADERSHIP Weekend, her eyes focused on the PoS screen as she processed a customer’s payment.
For Ada, adopting PoS payments was not just a convenience—it became a necessity. Customers often left when she couldn’t offer cashless transactions. However, with the PoS terminal, she not only processes payments but also provides withdrawal and transfer services, creating an additional income stream for her business.
“It’s very important for women traders,” Ada stressed, encouraging other businesswomen to invest in PoS technology, even if it meant borrowing money to buy one. “It’s worth it,” she affirmed.
Another respondent, Juliet Obuh, a 21-year-old salon operator in the same market, shared Ada’s view on the PoS terminal. “Many customers come and complain that they don’t have cash,” she said, as she curled a client’s hair.
PoS allows us to do business with customers without interruption. It keeps our money safe in the bank,” Juliet explained.
Her shift to cashless payments began during the 2022 cash scarcity, triggered by the CBN’s naira redesign and cashless policy. “I prefer keeping my money in the bank because it’s safer,” she added.
In Jigawa State’s Hadeja Market, 28-year-old grocery shop owner Aisha Idris faces a similar situation. “Most of my customers prefer cashless transactions,” she said.
Aisha remarked, “There is no business without the PoS machine.” However, she recognizes that many small-scale women traders struggle to afford a PoS device.
“A loan could help us achieve digital financial inclusion,” she suggested, emphasizing the need for financial support to enable more women in business to adopt PoS technology.
For 18-year-old foodstuff dealer , Fatima Haruna, digital payments are not just about convenience; they are about security.
LEADERSHIP Weekend reports that carrying cash can be risky in northern Nigeria due to security concerns. PoS machines offer peace of mind and promote financial inclusion, enabling women traders to focus on their businesses without the constant worry of potential losses.
Challenges On The Digital Frontier
Although PoS technology has transformed businesses for women traders in northern Nigeria, significant challenges remain. For Ada and many others, network issues continue to be a persistent obstacle.
“Sometimes, banks face their own network issues,” Ada explained, recalling occasions when transactions were delayed or failed completely.
Aisha shared a particularly frustrating experience. After transferring N10,000 to a customer’s account, the transaction failed to process, putting her in a difficult position.
“He notified me three days later,” she recounted, stressing how such glitches can undermine trust between traders and their clients.
Despite these challenges, the consensus among the women is unmistakable—PoS machines are essential. They not only facilitate transactions but also ensure the continued viability of their businesses in an increasingly cashless economy.
From hairdressers in Bauchi to grocery shop owners in Jigawa, women traders across Northern Nigeria are embracing the digital age, overcoming obstacles, and benefiting from cashless payments. Their stories highlight the resilience and resourcefulness of women entrepreneurs and the transformative power of technology in their lives.
Women Leader Calls For Support From Fintechs
The leader of women traders at Wunti Market, Hauawa Sani, expressed her enthusiasm about the increasing adoption of Point of Sale (PoS) systems among women traders in Bauchi, highlighting its importance in driving financial inclusion.
She noted that PoS devices have simplified transactions, reduced the need to carry large amounts of cash, and greatly improved the sense of security for women traders.
With PoS technology, many of our members are now able to serve a broader customer base that prefers cashless payments, leading to increased sales and greater financial inclusion. Women traders are also gaining confidence in managing digital transactions, which is empowering them economically,” she explained.
Hauawa pointed out that limited awareness of how to effectively use PoS machines makes some women traders hesitant to adopt the technology. She also highlighted that the high service charges imposed by banks and PoS agents reduce profit margins, making the technology less attractive for small-scale traders.
To address these challenges, Hauawa urged financial institutions and the government to offer training on digital payment systems specifically designed for market women.
“Lowering service charges and providing subsidies for PoS device purchases would motivate more traders to embrace this technology. By implementing these measures, we can maximize the benefits of PoS and foster economic growth in northern markets,” she emphasized.
PoS In Nigeria
In 2013, the Central Bank of Nigeria (CBN) introduced Point of Sale (PoS) services to streamline strategies essential for implementing the cashless policy and enhancing financial inclusion. According to data from the Nigeria Inter-Bank Settlement System (NIBSS), by 2024, that is eleven years after, Nigeria had approximately 26.54 million registered PoS terminals. However, the data also reveals that about 1.02 million of these terminals are either inactive or underutilised.
A LEADERSHIP Weekend analysis of NIBSS data revealed a 22.59 percent growth in PoS terminals in 2024, rising from 21.65 million in July 2023. This increase highlights the growing adoption of digital payment platforms in the country, driven by policies focused on reducing cash transaction reliance. In January 2024 alone, 3.44 million new PoS terminals were registered, marking a 48.5 percent rise from 2.32 million in January 2023.
A 2023 survey revealed that 30 per cent of adult women in Nigeria were excluded from both formal and informal financial services, compared to 21per cents of men.
The NIBSS data further showed that Nigerians spent N89.50 trillion through electronic channels in July 2024, marking the highest monthly transaction value ever recorded on the NIBSS Instant Payment platform. This amount reflects an 89 percent year-on-year increase from N47.39 trillion in the same period in 2023.
According to NIBSS, the record set in July 2024 has brought the total value of electronic transactions in Nigeria between January and July 2024 to N566.3 trillion, approaching the N600 trillion recorded in 2023.
In December 2024, the CBN implemented transaction limits for both PoS agents and customers. Specifically, agents were given a daily cash-out limit of N1.2 million, while customers had daily cash-out limits of N100,000 and N500,000, depending on the type of PoS terminal used.
Ways To Encourage More Northern Women Entrepreneurs To Use PoS
Mohammed Uwais, a lecturer in the Department of Banking and Finance at Federal Polytechnic Bauchi, explained that promoting the adoption of Point of Sale (PoS) terminals among women traders in Northern Nigeria requires a culturally sensitive, practical, and financially inclusive approach.
“Many women traders in the region operate in informal markets, so it is essential to understand their unique needs and address any potential barriers,” he noted.
Uwais emphasised that financial literacy and trust-building campaigns are crucial, as many women may not fully grasp the benefits or workings of PoS terminals. He suggested organising workshops or one-on-one sessions in local languages, tailored to demonstrate how PoS terminals can boost sales, reduce cash handling risks, and simplify record-keeping.
He further stated, “Collaborating with local women’s associations and market leaders will help make the message more relatable and credible.”
Uwais also highlighted the importance of simplifying the process and reducing costs. Many traders may view PoS terminals as expensive or complicated to use. Financial institutions should offer affordable, user-friendly terminals, waive setup fees, or provide installment payment options. Offering low or zero transaction fees for an introductory period would also encourage adoption. Additionally, banks and fintech companies could bundle PoS services with mobile money solutions that traders are already familiar with.
He emphasised that leveraging trust networks and offering incentives could drive adoption, with satisfied users sharing their success stories within their communities to create a ripple effect. He suggested that institutions provide referral bonuses to traders who onboard others or offer rewards such as free airtime or discounts on terminal upgrades.
“By focusing on education, affordability, and community-driven adoption, financial institutions can empower more women traders in Northern Nigeria to embrace PoS technology, boosting their businesses and contributing to the region’s financial inclusion objectives,” Uwais concluded.
This report is produced as part of the DPI Africa Journalism Fellowship Programme, a collaboration between the Media Foundation for West Africa and Co-develop.
