Nigeria’s first digital micro insurer, Casava Microinsurance Limited, has partnered with Kuda Microfinance Bank to introduce Merchant and Device Protection. This new offering is the first insurance product specifically designed for POS merchants across Nigeria.
The product is now live and already providing protection to Kuda merchants. Kuda Microfinance Bank was upgraded by the Central Bank of Nigeria to a national microfinance bank in December 2025.
Nigeria's Expanding POS Network
Nigeria's POS network has experienced rapid growth. In Q1 2026 alone, POS terminals processed ₦18.78 trillion in transactions, exceeding the total processed by the entire POS industry in 2024.
There are nearly six million active POS terminals in the country, serving as the primary means for Nigerians to access cash and make payments. Roughly one POS terminal exists for every 26 Nigerians, with over 95% of Nigerian adults relying on these merchants for financial services.
Transaction values surged from ₦10.7 trillion in 2023 to an annualized run-rate of over ₦75 trillion in 2026. The number of deployed terminals more than doubled in 2024 alone, with an estimated 1.9 million POS operators supporting the livelihoods of 8 to 10 million Nigerians.
Addressing the Protection Gap
Despite the critical role of POS merchants, the underlying infrastructure has lacked adequate protection. An Intelpoint survey highlighted that 96.4% of Nigerian businesses carry no insurance of any kind.
POS merchants face significant risks, including theft and robbery. In 2023, POS terminals accounted for over 26% of all fraud incidents reported to the Nigeria Inter-Bank Settlement System (NIBSS). The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) reports that more than 10 agents lose their lives annually due to robbery-related incidents, a figure widely considered an undercount.
Armed attacks on POS operators were documented across Lagos, Ibadan, Aba, Abeokuta, Edo, Adamawa, and Kano in 2025 and early 2026. Merchants are targeted for both the cash they carry and the devices they operate.
Market fires also pose a devastating threat. Nigeria recorded at least 25 major market fires in the first five months of 2025, with cumulative losses exceeding ₦30 billion across 42 incidents between January 2023 and April 2025. Notable incidents include the Balogun Market fire on Christmas Eve 2025, which killed at least 12 people and destroyed billions of naira in goods, and the Singer Market fire in Kano, which destroyed approximately 1,000 businesses and ₦5 billion in goods.
The cost of replacing a lost POS terminal has nearly doubled in two years. Entry-level devices now cost approximately ₦21,500, while Android terminals range from ₦62,000 to ₦85,000. For an agent earning ₦3,000 to ₦12,000 per day, replacing a stolen device can wipe out a month's income, compounded by downtime.
Comprehensive Coverage for Merchants
Casava’s Merchant and Device Protection bundles three types of coverage into a single product. Device Protection covers POS terminals against theft, armed robbery, accidental damage, and fire, including replacement costs.
Merchant Fire Protection safeguards the merchant’s shop, kiosk, stall, or operating premises against fire and related perils. Additionally, Business Continuity Support helps merchants minimize downtime and resume operations after a covered incident.
Onboarding, policy activation, and claims processing are all handled digitally. Casava has a history of responding to fire-related losses, having paid claims to affected policyholders after the Great Nigeria Insurance House fire devastated Balogun Market on Christmas Eve 2025.
Solabomi Oreagba, Executive Director (Corporate Services) at Casava, emphasized the importance of POS merchants as Nigeria's most crucial financial infrastructure. She stated, “When a merchant is robbed or a market fire destroys their kiosk, they don’t just lose a device. They lose their income, their float, their livelihood, and the community they serve loses its closest access point to financial services.”
Nosa Oyegun, SVP- Business Banking at Kuda, added, “Kuda exists to make financial services more accessible for every Nigerian. Our merchants are at the front line of that mission. That’s why the partners we work with matter. We partnered with Casava for POS devices and credit insurance, and it’s been a genuinely positive experience.”
