Onafriq Closes Baxi Agent Banking Operations in Nigeria

Onafriq, a pan-African payments company, has decided to shut down its Baxi agent banking operations in Nigeria, citing several economic pressures that have made sustainability difficult. The company, which acquired Capricorn Digital Limited, the operator of Baxi, in 2021, pointed to persistent inflation, naira depreciation, rising operating costs, and increasing competition as key factors in this decision.

Baxi had established a network of over 460,000 agents by 2025, providing essential services such as cash withdrawals and bill payments. However, the financial viability of the business was compromised despite its extensive network.

Onafriq noted that rising operational expenses and competition had made it increasingly challenging to maintain profitability. Additionally, the shift towards instant account-to-account transfers has altered customer payment habits, further impacting the demand for offline agent banking services.

The closure of Baxi's operations underscores the difficulties faced by payment providers in adapting to changing market conditions.