Onafriq, a pan-African payments company, is shutting down its Baxi agent banking operation in Nigeria after macroeconomic deterioration and changing market conditions made the business unsustainable. The company said in a statement that the operating environment shifted significantly from 2024, with naira depreciation and broader economic pressures reducing transaction volumes and increasing operating costs. Competition in the sector has also intensified, compressing margins, while the rapid growth of instant account-to-account payments has altered the types of transactions conducted through agents' point-of-sale terminals.
Onafriq acquired Baxi, also known as Capricorn Digital Limited, in 2021 and invested heavily in expanding its agent network through 2023, believing the model could widen financial access and digitise cash-based transactions. The company said it entered Nigeria with conviction but did not achieve the expected outcomes from the operation. Founder and chief executive Dare Okoudjou described the closure as a difficult decision affecting employees, agents and business partners who built the Baxi network.
The wind-down will impact staff whose roles are tied to agent banking. Onafriq said it would consult affected employees and provide transition support. Agents have been moved to another principal bank, and the company has asked them to transfer funds to their preferred principal bank within 30 days.
Despite the exit from agent banking, Onafriq said it is not leaving Nigeria entirely. The company plans to continue operating as a Payment Solution Service Provider through its payments network and card-issuing services. The company did not disclose the number of employees or agents affected, Baxi's financial performance or a completion timeline for the wind-down.