How To Start A Cash Swap Business In Nigeria That Makes Millions

With Nigeria’s recent cash crunch, people are beginning to realize that cash is truly king.

But in all these debacles, there is a huge opportunity to make money by setting up a cash swap business to fill the cash needs of many POS businesses.

As you may already know, the CBN of Nigeria has limited cash withdrawal over the counter to a maximum of 500k for individuals and 5 million for corporate account holders.

What this means is that many POS owners operating individual bank accounts will become limited in terms of how much cash they have access to.

Hence, creating a market for cash swap businesses to fill the cash needs around them.

In this article, we’ll look at how to set up a profitable cash swap business in Nigeria that can potentially make millions.

You might just be the next cash swap king if you try.

Table of Contents

    Corporate Cash Withdrawals

    The first step to setting up a cash swap business in Nigeria is to position above the existing cash limitations.

    You need access to as much cash as you can get your hands on a weekly basis.

    So, you need to have a corporate bank account to enjoy the weekly 5 million Naira maximum cash withdrawal.

    Establish POS Network

    Next, you need to establish a network of POS businesses that are in need of your services.

    POS Operators in Suburbs 

    You want to target those in the suburbs or rural areas that are far away from the banks.

    The farther a POS operator is from the bank, the higher the chances that they would engage in cash swap.

    Small Holding POS Operators 

    You also want to target small holding POS operators who have a low balance and do not have the luxury of frequenting the banks.

    These guys just need about 50k Naira at different intervals in a day, and they mostly need it urgently.

    High-volume POS Operators 

    You also want to target high volume POS operators who operate individual bank accounts and may not have access to enough cash.

    These guys would need about 500k to 1 million on a daily basis, and sometimes may even need more.

    Establish Cash Delivery Agents

    Once you have a few POS operators on your list, you can then hire a few cash delivery agents.

    These could be trusted dispatch riders who know the local area very well.

    Their job would be to deliver cash to POS operators in the network and receive credit via POS or bank transfer.

    Each cash delivery agent could be assigned with a POS machine and an invoice for recording every cash swap transaction.

    Offer Competitive Charges

    The idea of establishing a cash swap business is not to become a shark and squeeze every profit out of POS operators.

    Instead, it is a chance to solve a unique problem and fill a unique need, while making some good money.

    Hence, you should offer reasonable charges that are competitive enough to keep POS operators patronizing you while you keep making money.

    The standard way to do this is to calculate the cost of transportation that the average POS operator needs to get to the bank, then you add a little charge on top of that.

    For example, if it takes a POS operator 500 Naira to get to the bank, you can charge an extra 200 Naira for the convenience, making it a total of 700 Naira.

    Most POS operators would be glad to pay that instead of locking up their businesses to visit the bank.

    Allied Financial Services

    The peculiarity of this industry provides opportunities for making money in more ways than cash swaps.

    You could offer quick cash loans to POS operators with reasonable interests, introduce Fintech products, and help finance business ideas.

    There’s a huge opportunity to make good money with B2B allied services, if you’re able to accumulate a good number of POS operators as customers.

    All it takes is one POS at a time.




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