Onafriq, the pan-African financial technology company, is winding down its Nigerian agent banking business, Baxi, after five years, citing rising operating costs, naira depreciation and intensifying competition in the country’s payments market.
Announced on October 16, 2026, the decision marks a strategic shift for the company, which entered Nigeria’s agent banking sector in 2021 through the acquisition of Baxi, operated by Capricorn Digital Limited. The move will end its direct involvement in this segment but will not affect its wider Nigerian operations.
According to Onafriq, changes in Nigeria’s business environment since 2024 have made its offline agent banking model increasingly difficult to sustain.
The depreciation of the naira and broader inflationary pressures affected operating expenses and transaction economics. At the same time, growing competition among payment service providers reduced profit margins in a market where agents depend on transaction fees to generate income.
The rapid adoption of instant account-to-account transfers has also changed consumer payment habits, affecting the volume and mix of transactions processed through agents’ point-of-sale (POS) terminals.
These pressures forced the company to review the long-term viability of Baxi’s operations. Onafriq founder and chief executive officer Dare Okoudjou acknowledged that the company had not achieved the results it expected from the business, describing the closure as a difficult decision affecting employees, agents and business partners.
Baxi built a network that enabled Nigerians to access financial services outside traditional bank branches. Its agents provided services such as cash withdrawals, money transfers, bill payments and other everyday transactions.
The network helped connect customers and small businesses to digital financial services, particularly in areas where access to conventional banking infrastructure could be limited.
As part of the wind-down, Onafriq said agents operating through the Baxi platform had been transitioned to another principal bank. The company has also instructed agents to transfer their funds to their preferred principal bank within 30 days, while its teams provide assistance throughout the process.
Employees whose roles are directly connected to the agent banking business will be consulted and supported during the transition. The company has not publicly disclosed the total number of workers or agents affected by the decision.
Despite the shutdown, Onafriq has emphasised that Nigeria remains an important market for its broader payments business. The company plans to continue operating through its payment services network and card-issuing services, rather than maintaining a physical agent banking operation.
Onafriq, formerly known as MFS Africa, has built a wider payments infrastructure connecting financial institutions, mobile money operators and businesses across African markets. Its network supports cross-border transactions and digital payment services, providing an alternative growth path as the company reassesses its local business priorities. .
The decision highlights the challenges facing financial technology companies operating physical agent networks in Nigeria. Although POS agents remain important for cash access and basic financial services, operators must balance transaction revenue against agent commissions, technology costs, infrastructure expenses and changing customer preferences.
For Onafriq, closing Baxi represents a retreat from one business segment rather than a complete departure from Nigeria. Its next phase will focus on payments infrastructure and card services, as the company seeks a more sustainable operating model in a competitive market.
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