Emma Okonji
Onafriq, a fee answer service supplier, has introduced its choice to wind down its agent banking enterprise in Nigeria, operated as Baxi by Onafriq Nigeria Payments Limited.
The choice to close down the enterprise, in accordance with the corporate, just isn’t unconnected to Nigeria’s enterprise atmosphere, which has to do with the nation’s working panorama, together with inflation and forex depreciation, which have affected buying and selling volumes, working prices, and the sustainability of the offline agent banking mannequin.
Onafriq entered the Nigerian agent banking market in 2021 by buying the Baxi enterprise (often known as Capricorn Digital Limited) and invested closely by way of 2023 to strengthen and scale the agent community, an funding that mirrored the group’s perception in agent banking’s position in increasing monetary entry and digitizing cash-based transactions.
The firm nevertheless mentioned buying and selling circumstances modified considerably from 2024, citing the depreciation of the Naira and broader macroeconomic pressures that dramatically modified the economics of the technique.
The firm, in a press release, additionally mentioned the speedy development of immediate account-to-account funds concurrently modified the combination of transactions at brokers’ Point of Sales (PoS), including that elevated competitors on this phase with related margin compression added additional stress on the enterprise.
“Following a review of its long-term strategy and the sustainability of the business, the group concluded that winding down the agent banking operation is the right course of action,” the assertion mentioned.
Founder and Chief Executive Officer of Onafriq, Dare Okoudjou, mentioned: “We entered Nigeria with conviction and dedication, however didn’t obtain the end result we set out for. Closing this enterprise was a tough choice to reach at, one which impacts colleagues, brokers, and enterprise companions throughout Nigeria who poured their hearts and soul into constructing out the Baxi community. We are dedicated to honesty, equity, and a well-managed transition for everybody impacted. Nigeria stays central to our mission, and we are going to proceed to serve the market as a Payment Solution Service Provider by way of the Onafriq funds community and our card issuing companies.
“The closure will have an effect on staff with roles linked to the agent banking enterprise. Every affected worker might be consulted, handled pretty, and supported by way of the transition.
“Agents onboarded via the Baxi payments platform have been transitioned to another principal bank and we have asked our agents to transfer their funds to their preferred principal bank within 30 days. Onafriq’s teams are available to provide support and guidance throughout the process. The company will continue to honour its commitments to affected stakeholders and communicate openly during the transition,” the assertion mentioned.
“The decision is confined to the agent banking business in Nigeria and does not represent an exit from the Nigerian market. Onafriq Group remains strong, with continued growth across its cross-border payments network and card issuing services. Onafriq remains committed to Nigeria and will focus on embedding these services in the Nigerian ecosystem,” the assertion added.
