Onafriq Shuts Down Baxi Agent Banking in Nigeria

In Short

• Onafriq is shutting down its Nigerian agent banking unit, Baxi.
• The company says naira devaluation, inflation, and competition made the offline POS model less viable.
• Agents will be moved to other “principal” banks, and customers have 30 days to withdraw or migrate funds.

What Happened

Onafriq, the pan-African payments company, is closing its Baxi agent banking business in Nigeria. Agent banking is when a network of local merchants uses POS terminals to help customers deposit cash, withdraw cash, or pay bills.

The exit follows an internal strategic review. Onafriq said Nigeria’s macroeconomic conditions have squeezed margins, meaning the business earns less per transaction while costs keep rising.

The company entered the space in 2021 when it acquired Capricorn Digital Limited, the operator behind Baxi. It then invested heavily to grow an offline agent network aimed at driving financial inclusion.

From 2024, the naira’s sharp devaluation and high inflation increased operating costs and reduced purchasing power for many users. Onafriq also pointed to a shift in consumer behaviour, with more Nigerians using instant account-to-account transfers, which reduce the need for cash-in and cash-out at agent locations.

In a statement, CEO Dare Okoudjou said agents on Baxi are being transferred to alternative principal banks. Customers have been advised to move funds within a 30-day window. Staff tied directly to the agent banking unit are going through consultation, with transition support planned.

Why It Matters

Baxi’s shutdown is a reminder that agent networks can be capital intensive. POS rollout, agent support, cash logistics, and dispute handling all get harder when currency weakness and inflation hit.

It also highlights how fast Nigeria’s payments mix is changing. As real-time bank transfers become more common, offline agency banking players face lower volumes and tougher price competition.

Onafriq says this is not a full exit from Nigeria. The firm plans to continue serving the market through its PSSP licence, meaning it can provide payment services for businesses, and through its card issuing operations. The company will now lean more on its core cross-border payments network, rather than running a large on-the-ground POS business.