Onafriq shutters Baxi agent‑banking arm in Nigeria amid cost pressures

Decision to Exit Agent Banking Onafriq announced that it will close its Baxi agent‑banking business in Nigeria. The shutdown will affect the network of point‑of‑sale agents that operated under Onafriq Nigeria Payments Limited, but the company will remain active in the country through its cross‑border payments and card‑issuing services.

Reasons for the Withdrawal The fintech company said that a combination of macroeconomic pressures and structural changes in the payments market made the offline model unsustainable. Key factors included: - The depreciation of the naira, which increased operating expenses and reduced transaction volumes. - Rising costs of running the agent network. - Intensifying competition that compressed transaction margins. - A rapid shift toward instant account‑to‑account transfers, which altered the mix of transactions processed through POS terminals.

Background of the Baxi Network Onafriq entered the Nigerian market in 2021 by acquiring Baxi, also known as Capricorn Digital Limited. The acquisition was intended to expand the company’s presence in the country’s payments industry through a growing network of agents. Investments were made through 2023 to broaden the network and promote digital alternatives to cash‑based transactions.

Impact on Stakeholders The decision will affect employees, agents and business partners who had built the Baxi network. While the company described the move as difficult, it emphasized that it remains committed to the Nigerian market and will continue to offer other payment services.

Future Operations Despite the exit from agent banking, Onafriq will keep operating its cross‑border payments network and card‑issuing services in Nigeria. The company’s leadership indicated that the strategy allows it to focus on segments that remain profitable and aligned with its long‑term objectives.

Industry Context The withdrawal reflects broader trends in Nigeria’s payments sector, where instant transfers have grown rapidly and competition among fintech firms has intensified. Many companies are reassessing the viability of offline agent models in light of changing consumer preferences and economic conditions.