Fintech firm Onafriq is winding down its Baxi agent banking business in Nigeria, citing naira depreciation, rising operating costs and intensifying competition that have made the operation unsustainable.
The decision ends the company’s involvement in the agent banking segment but does not amount to a full exit from Nigeria, where it will retain its cross-border payments network and card-issuing services.
In a statement on Friday, the company said changes in the operating environment since 2024 had weakened the economics of its offline agent banking business.
It attributed the decision to inflation, currency depreciation, changing transaction patterns and shrinking margins in an increasingly competitive payments market.
The rapid adoption of instant account-to-account transfers has also altered the mix of transactions handled by agents, adding to the pressure on the business.
Onafriq’s Chief Executive Officer, Dare Okoudjou, said the company had entered the Nigerian market with high expectations but failed to achieve its objectives.
“Closing this business was a difficult decision,” he said, noting that it would affect employees, agents and business partners who had helped build the Baxi network.
Onafriq entered Nigeria’s agent banking market in 2021 through the acquisition of Capricorn Digital Limited, which operates under the Baxi brand. It continued investing in the business through 2023 to expand its agent network.
However, a review of its long-term strategy and the sustainability of the operation led the company to decide to discontinue the business.
As part of the transition, agents registered through Baxi are being moved to another principal bank. The company has also advised agents to transfer their funds to their preferred principal bank within 30 days, while promising support throughout the process.
Employees whose roles are linked to the business will be consulted and supported, the company said, adding that it would treat affected workers fairly.
Despite the closure, Okoudjou said Nigeria remained central to the group’s mission and confirmed that it would continue providing payment services through its wider network and card-issuing operations.
The decision comes amid wider pressure on businesses operating in Nigeria, where currency volatility, inflation and rising costs have prompted some companies to scale back or discontinue parts of their operations.
Mobility company Moove recently announced plans to end its Nigerian operations, while ride-hailing firm Uber has also withdrawn from the market.
For Onafriq, the Baxi wind-down marks a shift away from offline agent banking towards its broader payments business, which connects payment systems across Africa and international markets.
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