Fintech firm, Onafriq, has introduced plans to wind down its Baxi agent banking business in Nigeria, citing naira depreciation, rising working prices and shrinking margins amid intensifying competitors in the fee providers market.
The resolution impacts the agent banking operation run by Baxi below Onafriq Nigeria Payments Limited, however doesn’t quantity to an exit from Nigeria, as the corporate will proceed working its cross-border funds community and card issuing providers in the nation.
In a press release shared with Nairametrics on Friday, October 16, 2026, the funds firm stated adjustments in the working setting since 2024 had considerably altered the economics of its offline agent banking business, making the operation unsustainable below its present mannequin.
The improvement marks a strategic retreat from a section of Nigeria’s monetary providers market that has helped prolong entry to monetary transactions past conventional financial institution branches.
Why Onafriq is winding down Baxi
Onafriq attributed the choice to a mix of macroeconomic pressures and structural adjustments in Nigeria’s funds market.
The firm stated naira depreciation and inflation had affected transaction volumes, working bills and the sustainability of its offline agent banking mannequin.
It additionally recognized the fast development of prompt account to account transfers as an element altering the combination of transactions processed by brokers, whereas growing competitors in the section had compressed margins.
Dare Okoudjou, founder and chief government officer of Onafriq, stated the corporate entered Nigeria with robust conviction however had not achieved the result it supposed.
- “We entered Nigeria with conviction and dedication, however didn’t obtain the result we set out for.
- “Closing this business was a difficult decision to arrive at, one that affects colleagues, agents, and business partners across Nigeria who poured their hearts and soul into building out the Baxi network,” Okoudjou stated.
Okoudjou stated Nigeria remained central to the group’s mission, including that Onafriq would proceed serving the market via its funds community and card issuing providers.
Onafriq’s market entry
Onafriq entered Nigeria’s agent banking market in 2021 via the acquisition of Baxi, also referred to as Capricorn Digital Limited. The firm stated it continued investing in the business via 2023 to increase and strengthen its agent community.
- However, following a assessment of its long-term technique and the business’s sustainability, the group concluded that winding down the operation was the suitable resolution.
- Onafriq stated brokers onboarded via the Baxi platform had been transitioned to a different principal financial institution.
- It has additionally requested brokers to switch their funds to their most well-liked principal financial institution inside 30 days, with its groups out there to offer assist in the course of the transition.
The firm added that workers whose roles are related to the agent banking business could be consulted and supported, with a dedication to treating affected staff pretty.
Corporate pullbacks from Nigeria
Although Onafriq is just not leaving Nigeria, its resolution to discontinue Baxi’s agent banking operations comes towards the backdrop of a number of worldwide and home companies which have scaled again or exited elements of the Nigerian market in current years.
Uber stated it left Nigeria to focus its investments on markets the place it believes it could actually create essentially the most worth for drivers by offering incomes alternatives at scale and enabling riders to journey seamlessly.
In current instances, worldwide shopper items and expertise firms have reassessed their Nigerian operations amid foreign money volatility, inflation and difficulties repatriating earnings. Such selections have included full exits, asset gross sales, adjustments in distribution preparations and the discontinuation of particular product traces.
