Fintech company Onafriq Nigeria Payments Limited has said it will shut down its agent banking business in Nigeria, known as Baxi. The firm plans to focus on payments across Africa instead.
In a statement on Friday, the company pointed to economic challenges like inflation and falling currency value. These issues have affected trading volumes and operating costs, making it hard for their offline agent banking model to survive.
Onafriq, based in South Africa, has a presence in countries like Morocco, Mali, Kenya, and Tanzania. The company entered Nigeria's agent banking market in 2021 when it bought Baxi, also known as Capricorn Digital Limited, and invested heavily to expand its agent network through 2023.
Since 2024, the company has faced tough operating conditions. The naira's sharp drop and wider economic issues have greatly impacted its business.
At the same time, instant account-to-account payments have changed how transactions happen at agents’ points of sale.
Onafriq stated that more competition in this area and squeezing profit margins have made the business even tougher.
After looking at its long-term plans and the sustainability of the business, the company decided it was best to close down the agent banking operations.
“We came to Nigeria with strong beliefs and commitment, but did not get the results we wanted. Deciding to close this business was not easy. It affects our colleagues, agents, and partners across Nigeria who worked hard to build the Baxi network,” said Dare Okoudjou, founder and CEO of Onafriq.
“We want to be honest and fair, and we will manage this transition carefully for everyone involved. Nigeria is still important to us, and we will keep serving the market as a Payment Solution Service Provider through the Onafriq payments network and our card issuing services,” he added.
The shutdown will only impact workers directly connected to the agent banking business. The company promises that all affected employees will be consulted and treated fairly during this transition.
Onafriq mentioned that agents who joined through the Baxi payments platform have been moved to another main bank. The company has asked them to transfer their funds to their chosen bank within 30 days.
“Onafriq’s teams are here to help and guide everyone during this process. We will keep our promises to those affected and will communicate openly as we make this transition,” the company stated.
They also clarified that this decision only affects their agent banking business in Nigeria and does not mean they are leaving the Nigerian market.
“Onafriq Group is still strong, with ongoing growth in our cross-border payments network and card issuing services,” they added.
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