Onafriq Closes Baxi, Its Nigerian Agent Banking Business

Onafriq announced the closure of Baxi, its Nigerian agent banking business, on October 16, marking the end of a five-year expansion effort that began with the acquisition of a significant independent agent banking network in Nigeria. Months before the closure, Onafriq had been negotiating a sale of Baxi, which encompassed the entire agency banking operation in Nigeria.

As of July, negotiations remained unresolved, with Onafriq's audited financial statements indicating that the company could not reliably estimate the sale's structure, timing, or financial impact. The closure was attributed to inflation, naira depreciation, rising operating costs, shrinking margins, and the growth of alternative payment methods, which rendered the offline agent network unsustainable.

In 2024, Onafriq's agency services revenue fell 56% to $13.4 million from $30.4 million the previous year, and the company wrote off $4.56 million in goodwill related to its Nigerian payments business.