Fintech company, Onafriq, has announced plans to wind down its Baxi agent banking business in Nigeria, citing naira depreciation, rising operating costs and shrinking margins amid intensifying competition in the payment services market.
The decision affects the agent banking operation run by Baxi under Onafriq Nigeria Payments Limited, but does not amount to an exit from Nigeria, as the company will continue operating its cross-border payments network and card issuing services in the country.
In a statement shared with Nairametrics on Friday, October 16, 2026, the payments company said changes in the operating environment since 2024 had significantly altered the economics of its offline agent banking business, making the operation unsustainable under its existing model.
The development marks a strategic retreat from a segment of Nigeria’s financial services market that has helped extend access to financial transactions beyond traditional bank branches.
Why Onafriq is winding down Baxi
Onafriq attributed the decision to a combination of macroeconomic pressures and structural changes in Nigeria’s payments market.
The company said naira depreciation and inflation had affected transaction volumes, operating expenses and the sustainability of its offline agent banking model.
It also identified the rapid growth of instant account to account transfers as a factor changing the mix of transactions processed by agents, while increasing competition in the segment had compressed margins.
Dare Okoudjou, founder and chief executive officer of Onafriq, said the company entered Nigeria with strong conviction but had not achieved the outcome it intended.
- “We entered Nigeria with conviction and commitment, but did not achieve the outcome 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 said.
Okoudjou said Nigeria remained central to the group’s mission, adding that Onafriq would continue serving the market through its payments network and card issuing services.
Onafriq’s market entry
Onafriq entered Nigeria’s agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited. The company said it continued investing in the business through 2023 to expand and strengthen its agent network.
- However, following a review of its long-term strategy and the business’s sustainability, the group concluded that winding down the operation was the appropriate decision.
- Onafriq said agents onboarded through the Baxi platform had been transitioned to another principal bank.
- It has also asked agents to transfer their funds to their preferred principal bank within 30 days, with its teams available to provide support during the transition.
The company added that employees whose roles are connected to the agent banking business would be consulted and supported, with a commitment to treating affected workers fairly.
Corporate pullbacks from Nigeria
Although Onafriq is not leaving Nigeria, its decision to discontinue Baxi’s agent banking operations comes against the backdrop of several international and domestic businesses that have scaled back or exited parts of the Nigerian market in recent years.
- Just last week, Moove, the global mobility company founded in Lagos, announced plans to conclude its operations in Nigeria six years after launching in the country.
- As part of its exit, the company said it would transfer full ownership of eligible vehicles worth approximately N35 billion to existing customers at no cost.
- Moove’s exit announcement came barely a month after e-hailing company Uber shut down its operations in Nigeria.
Uber said it left Nigeria to focus its investments on markets where it believes it can create the most value for drivers by providing earning opportunities at scale and enabling riders to travel seamlessly.
In recent times, international consumer goods and technology companies have reassessed their Nigerian operations amid currency volatility, inflation and difficulties repatriating earnings. Such decisions have included full exits, asset sales, changes in distribution arrangements and the discontinuation of specific product lines.