As Nigeria’s point-of-sale (POS) ecosystem continues its rapid growth, Casava Microinsurance Limited and Kuda Microfinance Bank have introduced a new insurance product aimed at protecting merchants who form the backbone of the country’s financial services network.
The newly launched Merchant and Device Protection scheme is designed specifically for POS operators, offering coverage against theft, robbery, fire incidents, accidental damage, and business interruptions. The product is already available to Kuda merchants nationwide.
The launch comes at a time when POS terminals have become one of Nigeria’s most critical payment channels. Industry data shows that nearly six million active terminals processed approximately ₦18.78 trillion in transactions during the first quarter of 2026 alone, underscoring the growing dependence of Nigerians on agent banking and POS services.
Despite handling a significant share of the nation’s payment transactions, many merchants remain financially vulnerable. Experts note that most small businesses and informal operators across the country lack insurance coverage, leaving them exposed to losses resulting from criminal attacks, market fires, and equipment damage.
According to industry estimates, POS transaction volumes have surged dramatically in recent years, with annualized transaction values now exceeding ₦75 trillion. The sector supports an estimated 1.9 million operators and provides livelihoods for millions of Nigerians, particularly in underserved communities where access to traditional banking infrastructure remains limited.
Security concerns have, however, become increasingly prominent. POS operators have frequently been targets of robbery attacks due to the cash they handle daily. In addition, recurring market fires across several states have caused billions of naira in losses, destroying businesses and leaving affected traders without financial support for recovery.
The rising cost of POS hardware has further intensified the challenge. Replacement costs for terminals have increased significantly due to currency pressures and import dependence, making it difficult for many merchants to quickly resume operations after a loss.
Under the new insurance package, merchants will receive protection for their POS devices against theft, armed robbery, fire outbreaks, and accidental damage. The plan also includes coverage for business premises and support designed to help merchants resume operations following covered incidents.
Casava stated that policy registration, activation, and claims processing will be handled digitally, allowing affected merchants to access support with minimal delays.
Speaking on the initiative, Casava Executive Director for Corporate Services, Solabomi Oreagba, described POS merchants as a vital component of Nigeria’s financial infrastructure, noting that they provide critical access to banking and payment services across urban and rural communities.
He emphasized that the loss of a POS terminal often extends beyond the device itself, affecting merchants’ incomes, business continuity, and the communities that rely on them for financial transactions.
Kuda’s Senior Vice President for Business Banking, Nosa Oyegun, said the partnership aligns with the bank’s commitment to expanding access to financial services. He noted that POS merchants play a central role in driving financial inclusion and ensuring seamless digital payments across the country.
Industry observers believe the initiative could help bridge a longstanding protection gap within Nigeria’s agent banking sector, providing merchants with a safety net while strengthening confidence in the country’s rapidly expanding payment infrastructure.
Casava, regulated by the National Insurance Commission (NAICOM), is Nigeria’s first fully licensed digital microinsurance company and focuses on delivering insurance solutions through fintech and enterprise partnerships.
