Onafriq 2024 Revenue Fell 7% After Naira Devaluation

In Short

• Onafriq’s 2024 revenue fell 7% year on year to $79 million.
• The company linked the drop mainly to naira depreciation in Nigeria, its biggest market.
• Total processed volume fell 28% to $8 billion, down from $11.2 billion in 2023.

What Happened

In recent filings, Onafriq reported that 2024 revenue declined to $79 million from $85.6 million in 2023. The fintech attributed the decline to naira devaluation in Nigeria.

The currency impact also showed up in group total processed volume, or TPV. TPV is the total value of transactions routed through a payments network, similar to the “throughput” of a toll road. Onafriq’s TPV fell from $11.2 billion in 2023 to $8 billion in 2024.

Gross profit fell 3% to $42 million, while cost of sales fell 11% to $38 million. Operating losses widened to $29 million from $23 million. The loss after tax improved to $36.2 million, compared to $40 million in 2023.

Onafriq reduced total borrowings to $23 million from $39 million. It also received $47 million from a Series C Extension III round agreed in the prior financial year. Cash and cash equivalents fell to $48.2 million from $71.9 million.

Why It Matters

Onafriq’s numbers highlight a common issue for African payments companies reporting in dollars while doing large volumes in local currencies. When a currency weakens, reported revenue and dollar-denominated transaction volumes can drop even if local activity is stable.

The filings also show mixed signals on resilience. Debt fell and costs reduced, but cash declined and losses from operations increased. Grant Thornton flagged a material uncertainty on going concern, meaning the auditor sees risk that future liquidity and performance could come under pressure.

At the same time, the network is still scaling. Onafriq said connected wallets grew from 500 million in 2023 to over one billion by 2025, even as country coverage only moved from 37 to 38 markets in the year under review.