Onafriq, a payment solution service provider, announced it is winding down its agent banking business in Nigeria, which operated under the Baxi brand. The company said the decision stems from Nigeria's operating environment, including inflation and currency depreciation, which have reduced trading volumes, increased operating costs and made the agent banking model unsustainable.
Onafriq acquired the Baxi business in 2021 and invested heavily through 2023 to expand the agent network. However, conditions shifted significantly from 2024 onwards, the company said. The depreciation of the Naira combined with broader macroeconomic pressures dramatically altered the business strategy's financial viability. Competition in instant account-to-account payments also changed the types of transactions agents handled, compressing margins further.
Founder and Chief Executive Dare Okoudjou said the company entered Nigeria with commitment but did not achieve its intended outcome. He stated that affected employees would be consulted and supported through the transition, and that agents have been transitioned to another principal bank with 30 days to transfer their funds.
The company emphasized that the closure is limited to agent banking and does not represent a complete exit from Nigeria. Onafriq said it will continue serving the market through its cross-border payments network and card issuing services, describing the group as remaining strong with continued growth across these operations.