Pan-African fintech giant Onafriq has announced the shutdown of its Nigerian agent banking division, operating under the well-known Baxi brand.
The strategic retreat marks a significant shift for the company, as macro pressures, shifting consumer habits, and a severe margin squeeze force a hard pivot back to its core cross-border payments engine.
The decision brings a dramatic end to an expansion effort that began in 2021, when Onafriq (then MFS Africa) acquired Capricorn Digital Limited, the operators behind Baxi. Over the next two years, the group poured heavy capital into expanding its footprint, banking on offline agent networks to drive financial inclusion across Africa’s largest economy.
However, Nigeria’s shifting economic landscape quickly undercut those ambitions.
Read also: MFS Africa expands into Nigeria: set to acquire leading super-agent network Baxi
From 2024 onward, the dramatic plunge of the naira alongside surging inflation squeezed operating costs and eroded transaction volumes. At the same time, the rapid rise of instant account-to-account bank transfers transformed how Nigerians transact, reducing reliance on cash-in/cash-out POS agents. A fiercely crowded agent banking market only worsened the situation, driving margins down to unsustainable levels.
A thorough strategic review forced the group to accept that the offline agency model no longer lined up with long-term commercial realities.
Addressing the exit, Dare Okoudjou, Founder and Chief Executive Officer of Onafriq, acknowledged the setback:
“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.
“We are committed to honesty, fairness, and a well-managed transition for everyone impacted. Nigeria remains central to our mission, and we will continue to serve the market as a Payment Solution Service Provider through the Onafriq payments network and our card issuing services.”
Okoudjou stressed that Onafriq remains committed to managing a fair transition. Agents on the Baxi platform are being transferred to alternative principal banks, and customers have been advised to migrate their funds within a 30-day window. Affected employees tied directly to the agent banking business are undergoing consultation and will receive transition support.
Crucially, leadership emphasised that this move is strictly isolated to the Baxi agency business and does not mark a full exit from Nigeria.
Onafriq will maintain its presence in the country through its Payment Solution Service Provider (PSSP) licence and its card-issuing infrastructure. By shutting down the capital-intensive POS operations, the fintech aims to streamline its focus on its primary high-growth driver, which is connecting domestic payment systems to its broader cross-border network across Africa and beyond.