Onafriq to Close Baxi Agent Banking in Nigeria Amid Challenges

Onafriq announced the closure of its Baxi agent banking business in Nigeria, attributing the decision to rising operating costs, currency depreciation, and intensified competition that have adversely affected the economics of its offline payments operations. This closure specifically impacts the agent banking segment and does not signify an exit from the Nigerian market.

The company noted that changes in Nigeria’s economic landscape and the swift adoption of instant account-to-account transfers have made sustaining the business increasingly challenging. Since entering Nigeria’s agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited, Onafriq had invested in expanding its network and promoting digital alternatives to cash transactions.

However, the depreciation of the naira and macroeconomic pressures have significantly altered the business's viability. Founder and CEO Dare Okoudjou stated that the decision to close the business was difficult and would affect many stakeholders involved in building the Baxi network.