Nigeria’s first digital micro insurer, Casava Microinsurance Limited, has partnered with Kuda Microfinance Bank to launch Merchant and Device Protection. This new product is the first insurance offering built specifically for POS merchants across Nigeria, and it is already live, providing protection to Kuda merchants.
The partnership addresses a critical gap in the financial infrastructure, as POS terminals have become indispensable for Nigerians. In Q1 2026 alone, these terminals processed ₦18.78 trillion in transactions, a figure that exceeds the entire POS industry’s processing volume for the whole of 2024. The annualized run-rate for POS transactions in 2026 is projected to surpass ₦75 trillion.
Addressing Nigeria's POS Protection Gap
With nearly six million active POS terminals, there is roughly one terminal for every 26 Nigerians, and over 95% of Nigerian adults rely on POS merchants for at least one financial service. Despite their crucial role, these merchants have largely operated without protection.
The POS network has scaled rapidly, with transaction values growing from ₦10.7 trillion in 2023 to the current annualized run-rate. The number of deployed terminals more than doubled in 2024, and an estimated 1.9 million POS operators support the livelihoods of 8 to 10 million Nigerians.
However, this infrastructure faces significant risks. An Intelpoint survey revealed that 96.4% of Nigerian businesses carry no insurance of any kind. POS merchants are particularly vulnerable to theft and robbery, which accounted for over 26% of all fraud incidents reported to the Nigeria Inter-Bank Settlement System (NIBSS) in 2023.
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. Documented armed attacks on POS operators occurred across Lagos, Ibadan, Aba, Abeokuta, Edo, Adamawa, and Kano in 2025 and early 2026, targeting cash and devices.
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, with entry-level devices costing approximately ₦21,500 and Android terminals ranging from ₦62,000 to ₦85,000. For an agent earning ₦3,000 to ₦12,000 per day, replacing a device can wipe out a month's income, compounded by downtime.
Understanding Merchant and Device Protection
Casava’s Merchant and Device Protection bundles three types of coverage. Device Protection covers POS terminals against theft, armed robbery, accidental damage, and fire, including replacement costs. Merchant Fire Protection covers the merchant’s shop, kiosk, stall, or operating premises against fire and related perils. Business Continuity Support helps minimize downtime and facilitates a swift return to operation after a covered incident.
Onboarding, policy activation, and claims processing are all handled digitally. Casava has a track record of responding to fire-related losses, having paid claims to policyholders affected by the Great Nigeria Insurance House fire at Balogun Market on Christmas Eve 2025.
Industry Leaders Speak on Partnership
Solabomi Oreagba, Executive Director (Corporate Services) at Casava, emphasized the importance of POS merchants as Nigeria's most vital 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, highlighted Kuda's mission to make financial services accessible. He added, “Our merchants are at the front line of that mission. They are the people who make digital payments work in practice, in every market, every neighbourhood, every day.” Oyegun praised Casava's professionalism, prompt responses, and commitment, noting that their reliable coverage and competitive pricing deliver real value.
Casava, Nigeria’s first fully licensed digital microinsurance company, is regulated by the National Insurance Commission (NAICOM) and specializes in building insurance products for everyday Nigerians through fintech and enterprise partnerships.
