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 cost providers market.
The choice 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 an announcement shared with Nairametrics on Friday, October 16, 2026, the funds firm stated modifications in the working surroundings 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 mixture of macroeconomic pressures and structural modifications 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 progress of prompt account to account transfers as an element altering the combo of transactions processed by brokers, whereas rising competitors in the section had compressed margins.
Dare Okoudjou, founder and chief govt officer of Onafriq, stated the corporate entered Nigeria with sturdy conviction however had not achieved the result it meant.
- “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 by its funds community and card issuing providers.
Onafriq’s market entry
Onafriq entered Nigeria’s agent banking market in 2021 by the acquisition of Baxi, also called Capricorn Digital Limited. The firm stated it continued investing in the business by 2023 to develop and strengthen its agent community.
- However, following a evaluation of its long-term technique and the business’s sustainability, the group concluded that winding down the operation was the suitable choice.
- Onafriq stated brokers onboarded by 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 obtainable to offer assist throughout the transition.
The firm added that staff whose roles are linked to the agent banking business could be consulted and supported, with a dedication to treating affected staff pretty.
Corporate pullbacks from Nigeria
Although Onafriq isn’t leaving Nigeria, its choice to discontinue Baxi’s agent banking operations comes in opposition to the backdrop of a number of worldwide and home companies which have scaled again or exited components of the Nigerian market in current years.
Uber stated it left Nigeria to focus its investments on markets the place it believes it might create probably the most worth for drivers by offering incomes alternatives at scale and enabling riders to journey seamlessly.
In current occasions, worldwide shopper items and expertise firms have reassessed their Nigerian operations amid foreign money volatility, inflation and difficulties repatriating earnings. Such choices have included full exits, asset gross sales, modifications in distribution preparations and the discontinuation of particular product traces.
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