Pan-African fintech group Onafriq has confirmed the shutdown of Baxi, its agency banking division in Nigeria, bringing an end to its retail point-of-sale network in the country. The firm attributed the shutdown to unsustainable overhead expenses, the steep depreciation of the naira, and mounting market rivalry.
Run under Onafriq Nigeria Payments Limited, Baxi has served as an agency banking lifeline across the nation. Through dedicated field merchants equipped with POS hardware, it enabled local residents to complete fundamental financial tasks—including cash withdrawals, money transfers, and utility payments—without stepping into a traditional branch.
Onafriq gained a foothold in Nigeria’s retail agency banking landscape in 2021 when it took over Capricorn Digital Limited, the company behind Baxi. Over the past several years, the group poured substantial capital into scaling its merchant footprint to digitize cash-dependent communities. However, macro headwinds have prompted the company to step away from physical agent banking and redirect its resources toward card issuance and international cross-border payment infrastructure.
The business climate grew increasingly hostile in 2024. Onafriq noted that accelerating inflation and the falling value of the local currency inflated day-to-day operational expenditures while denting transaction throughput. Concurrently, the nationwide explosion of instant bank transfers altered how consumers move money, chipping away at retail POS reliance and compressing profit margins.
A review of long-term priorities convinced leadership to sunset the retail network. Dare Okoudjou, Onafriq’s founder and chief executive, acknowledged that despite their early enthusiasm and hefty investments, the venture failed to hit targeted outcomes. He described the decision as painful, noting the significant dedication shown by Baxi’s staff, partner agents, and collaborators.
Regarding personnel and merchants, Onafriq stated that impacted team members are receiving transition support. Meanwhile, Baxi agents have been reassigned to a different principal bank and given a one-month window to migrate their funds, with company representatives assisting throughout the changeover.
The departure from agency banking does not signal a total retreat from the Nigerian market. Onafriq will maintain its operations locally under its Payment Solution Service Provider (PSSP) license, centering its Nigerian presence on card-issuing capabilities and pan-African payment rail integration for businesses and financial institutions.
