Onafriq is winding down its Baxi agent banking business in Nigeria after five years, citing rising operating costs, naira depreciation and growing competition in the payments market.
The decision will end the company’s physical agent banking operations in the country. However, Onafriq is not leaving Nigeria. The pan-African payments company will continue providing cross-border payment services and card-issuing services in the market.
In a statement issued on October 16, 2026, Onafriq said changes in Nigeria’s economic environment had made its offline agent banking model difficult to sustain. The company also pointed to changing customer payment habits and shrinking transaction margins.
The development marks a shift in Onafriq’s Nigerian strategy, away from operating a physical agent network and towards its wider payments infrastructure.
Why Onafriq Is Shutting Down Baxi Agent Banking
Onafriq attributed the decision to several economic and market pressures that have affected its operations since 2024.
The depreciation of the naira and rising inflation increased operating costs and affected transaction volumes. These pressures made it more difficult for the company to sustain its agent banking network profitably.
Competition also intensified as more Nigerians adopted instant account-to-account transfers. These transfers allow customers to send money directly between bank accounts, reducing the need to visit physical agents for some transactions.
At the same time, competition among payment service providers put additional pressure on transaction margins.
According to Onafriq, a review of its long-term strategy showed that continuing the business was no longer sustainable under the existing operating model.
The company had invested in strengthening and expanding Baxi’s agent network through 2023. However, the changing economic environment and customer payment behaviour weakened the business case for maintaining the network.
What Happens to Baxi Agents and Their Funds?
The shutdown affects agents, employees and business partners connected to Baxi’s agent banking operations.
Onafriq said agents onboarded through the Baxi platform had been transitioned to another principal bank. It has also asked these agents to transfer their funds to their preferred principal bank within 30 days.
The company said its teams would provide guidance and support throughout the transition.
Employees whose roles are directly connected to the agent banking business will also be consulted. Onafriq said it would treat affected employees fairly and support them during the process.
The transition is an important part of the shutdown because agents provide financial services to customers who rely on physical payment points for cash withdrawals, transfers and other transactions.
Onafriq has not publicly identified the replacement principal bank in the announcement. Agents should therefore follow the company’s official communication for specific instructions about their accounts and funds.
Onafriq Will Continue Operating in Nigeria
Although the company is ending Baxi’s agent banking operations, its wider Nigerian business will remain active.
Onafriq plans to continue operating as a Payment Solution Service Provider, focusing on its payments network and card-issuing services.
These services connect businesses and financial institutions to payment infrastructure across African markets and beyond. They form part of the company’s broader strategy to facilitate digital and cross-border transactions.
Dare Okoudjou, founder and chief executive officer of Onafriq, acknowledged that the company’s Nigerian agent banking business had not achieved the results it expected.
He described the closure as a difficult decision, particularly for the employees, agents and business partners who helped build the Baxi network. He also reiterated the company’s commitment to Nigeria through its remaining payment services.
The announcement makes clear that the decision applies specifically to agent banking, rather than the company’s entire Nigerian operation.
Baxi’s Five-Year Run in Nigeria
Onafriq entered Nigeria’s agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited.
The investment gave the company access to an established agent network and an opportunity to expand its presence in Nigeria’s payments sector. Onafriq continued investing in the business through 2023 to strengthen and scale its operations.
Baxi’s network supported everyday financial transactions through physical agent locations, helping customers access services outside traditional bank branches.
However, the business faced a more difficult operating environment as economic pressures increased and payment habits changed.
The growth of instant bank transfers created an alternative to some transactions previously handled by agents. Meanwhile, inflation, currency depreciation and intense competition affected the economics of maintaining a large offline network.
The decision to wind down the operation reflects Onafriq’s reassessment of how it can serve Nigeria’s payments market sustainably.
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Editorial Takeaway
Onafriq’s decision highlights the commercial challenges facing operators of physical agent banking networks in Nigeria.
Agent banking remains an important channel for customers who need cash withdrawals, deposits, transfers and other financial services outside conventional bank branches. However, providers must balance transaction volumes against agent commissions, technology costs, liquidity needs and other operating expenses.
As digital transfers become more widely used, providers may also need to adapt to changes in the types of transactions customers conduct through physical agents.
For Baxi agents, the immediate priority is completing the transition to another principal bank and moving their funds within the stated 30-day period.
For Onafriq, the next phase will focus on its wider payment infrastructure and card-issuing services.
The shutdown therefore marks the end of one part of the company’s Nigerian strategy, but not its presence in the country.
