Onafriq shuts down Baxi PoS agent banking in Nigeria

Onafriq has announced the closure of its agent banking business, Baxi, in Nigeria, citing rising operating costs, persistent inflation, naira depreciation and growing competition. The business is operated by Onafriq Nigeria Payments Limited.

The company gave agents 30 days to transfer their funds to their preferred principal bank. It said affected employees will receive support during the transition. Onafriq will remain in Nigeria and continue its wider payment services and card-issuing operations.

From 2021 expansion to 2024 pressure

Onafriq entered the Nigerian agent banking market in 2021 after acquiring Capricorn Digital Limited, the operators of Baxi. It invested heavily in expanding its agent network through 2023.

The business landscape changed considerably in 2024. Naira depreciation, inflationary pressures and rising operational expenses eroded profitability. The rapid adoption of instant bank-to-bank transfers also changed transaction patterns at PoS outlets, intensified competition and squeezed profit margins. Onafriq said these developments made the traditional offline agent banking model increasingly difficult to sustain.

After a comprehensive strategic review, the company concluded that winding down the operation was its most sustainable option. The closure marks a setback for its investment in a segment that has helped expand financial services to underserved communities.

Okoudjou calls closure painful

Onafriq founder and Chief Executive Officer Dare Okoudjou described the closure as painful, acknowledging its implications for employees, agents and business partners.

“We entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for,” Okoudjou said.

He said the company remained committed to treating affected stakeholders fairly and ensuring an orderly transition. Okoudjou also reaffirmed Onafriq’s confidence in Nigeria’s financial services market despite the disappointing outcome of its agent banking investment.

Agents moved to another principal bank

Onafriq said agents operating through the Baxi payments platform had been transitioned to another principal bank. Affected agents have been instructed to transfer their funds to their preferred principal bank within 30 days. Support teams will guide the process.

Employees whose responsibilities are directly connected to the discontinued business will also be affected. Onafriq pledged to consult affected workers, provide appropriate support and honour its commitments during the transition.

Despite the closure, the company stressed that it is not withdrawing entirely from Nigeria. It will continue providing payment services through its broader African payments network and card-issuing operations. Onafriq maintained that Nigeria remains strategically important to its long-term growth plans.

The development highlights the pressures facing financial technology operators as economic instability, changing consumer preferences and intensifying competition reshape Nigeria’s digital payments industry.

Separately, Moove is leaving Nigeria six years after starting with 76 cars in Lagos. For eligible drivers, the departure comes with outright ownership of the vehicles they have been paying to acquire.