Fintech corporate, Onafriq, has introduced plans to wind down its Baxi agent banking industry in Nigeria, bringing up naira depreciation, emerging working prices and shrinking margins amid intensifying festival within the fee services and products marketplace.
The verdict impacts the agent banking operation run through Baxi underneath Onafriq Nigeria Bills Restricted, however does no longer quantity to an go out from Nigeria, as the corporate will proceed working its cross-border bills community and card issuing services and products within the nation.
In a observation shared with Nairametrics on Friday, October 16, 2026, the bills corporate stated adjustments within the working atmosphere since 2024 had considerably altered the economics of its offline agent banking industry, making the operation unsustainable underneath its present style.
The improvement marks a strategic retreat from a phase of Nigeria’s monetary services and products marketplace that has helped prolong get entry to to monetary transactions past conventional financial institution branches.
Why Onafriq is winding down Baxi
Onafriq attributed the verdict to a mixture of macroeconomic pressures and structural adjustments in Nigeria’s bills marketplace.
The corporate stated naira depreciation and inflation had affected transaction volumes, working bills and the sustainability of its offline agent banking style.
It additionally known the fast enlargement of fast account to account transfers as an element converting the combo of transactions processed through brokers, whilst expanding festival within the phase had compressed margins.
Dare Okoudjou, founder and leader govt officer of Onafriq, stated the corporate entered Nigeria with sturdy conviction however had no longer completed the result it supposed.
- “We entered Nigeria with conviction and dedication, however didn’t reach the result we set out for.
- “Remaining this industry was once a troublesome choice to reach at, one that is affecting colleagues, brokers, and industry companions throughout Nigeria who poured their hearts and soul into development out the Baxi community,” Okoudjou stated.
Okoudjou stated Nigeria remained central to the gang’s venture, including that Onafriq would proceed serving the marketplace thru its bills community and card issuing services and products.
Onafriq’s marketplace access
Onafriq entered Nigeria’s agent banking marketplace in 2021 in the course of the acquisition of Baxi, sometimes called Capricorn Virtual Restricted. The corporate stated it persevered making an investment within the industry thru 2023 to amplify and fortify its agent community.
- Alternatively, following a assessment of its long-term technique and the industry’s sustainability, the gang concluded that winding down the operation was once the fitting choice.
- Onafriq stated brokers onboarded in the course of the Baxi platform were transitioned to any other essential financial institution.
- It has additionally requested brokers to switch their budget to their most well-liked essential financial institution inside 30 days, with its groups to be had to supply give a boost to all over the transition.
The corporate added that workers whose roles are hooked up to the agent banking industry can be consulted and supported, with a dedication to treating affected employees rather.
Company pullbacks from Nigeria
Even though Onafriq isn’t leaving Nigeria, its choice to discontinue Baxi’s agent banking operations comes in opposition to the backdrop of a number of global and home companies that experience scaled again or exited portions of the Nigerian marketplace in recent times.
Uber stated it left Nigeria to center of attention its investments on markets the place it believes it may create probably the most price for drivers through offering incomes alternatives at scale and enabling riders to go back and forth seamlessly.
In recent years, global shopper items and era corporations have reassessed their Nigerian operations amid foreign money volatility, inflation and difficulties repatriating profits. Such choices have integrated complete exits, asset gross sales, adjustments in distribution preparations and the discontinuation of explicit product traces.