If you feel you’re working hard for slim margins as a POS agent in Nigeria, it’s time to review your cash flow management. As a POS agent in Nigeria, you earn between ₦200-₦400 (depending on your location) on a ₦10,000 withdrawal: that’s a 2-4% commission. If you add ₦10,000 to ₦15,000 in cash sourcing costs, plus transport, data, and rent, you’ll realise that your profit is fast decreasing.

The difference between struggling and thriving POS agents is smart cash flow management. Here are seven proven strategies to help you maximise your profits.

Strategy #1: Optimise Your Cash Sourcing Costs

Cash sourcing may cost ₦10,000 to ₦15,000 for every ₦500,000 withdrawn. So, you need to; 

• Build strong relationships with 2-3 banks for better negotiating power. 
• Join POS agent cooperatives for bulk cash access at reduced fees.
• Reduce bank runs by collaborating with other agents to share transport costs. 
• Track sourcing costs weekly to identify the best bank deals.

Strategy #2: Maintain Your Optimal Cash Float

• Track your transaction patterns for one week to understand rush hours and busy days. 
• Apply the 70-30 rule: 70% in active float, 30% in reserve for unexpected withdrawals.
• Ensure adequate cash during peak hours (typically 4-7 PM) and keep a small emergency reserve for failed transactions or other issues.

Strategy #3: Diversify Your Revenue Streams

• Add bill payments (DSTV, electricity) that require no cash transaction. 
• Sell airtime and data with higher margins than withdrawals. 
• Offer money transfer services and consider placing merchant POS terminals in nearby shops to earn transaction percentages without cash management.

Strategy #4: Navigate CBN Transaction Limits Strategically

The ₦1.2 million daily limit applies per bank. So, you can;

• Operate accounts with 2-3 banks to protect against system downtime.
• Prioritise high-volume transactions when approaching limits. 
• Schedule large withdrawals early in the day.

Strategy #5: Protect Cash Flow from Common Pitfalls

• Keep devices charged and verify the network before large transactions. 
• Set aside 5-10% of the daily float for dispute resolution.
• Split your float between locations to minimise the risk of robbery. 
• Document all transactions with receipts and screenshots.

Strategy #6: Cut Unnecessary Operational Expenses

• Does your location justifies its rent? Locations without foot traffic often generate enough transactions. 
• Subscribe to data plans that match the amount you consume to cut costs.
• Use energy-efficient charging solutions and buy supplies in bulk with other agents for better pricing.

Strategy #7: Track Your Real Profitability

• Calculate weekly profit by adding commissions minus all expenses to see your actual profit. 
• Identify which transaction sizes are most profitable. 
• Set realistic weekly targets and use a simple notebook or spreadsheet to track daily activity.
• Review weekly and adjust strategies based on data.

Our Take

As a POS agent in Nigeria, understand that small improvements in money management can lead to noticeable increases in monthly profits. The strategies above can help you address your biggest cash flow challenges. If cash sourcing is most affected, focus on Strategies #1 and #6. For cash management issues, prioritise Strategy #2. For income growth, implement Strategy #3.

If you’re just venturing into the POS business, start by getting a Kashzoo POS terminal and then follow the strategies too.