Onafriq to Close Baxi Agent Banking in Nigeria Amid Challenges

Onafriq, a payment solution service provider, has announced the winding down of its agent banking business in Nigeria, which was operated under the name Baxi by Onafriq Nigeria Payments Limited. This decision is attributed to the challenging business environment in Nigeria, characterized by inflation and currency depreciation, which have negatively impacted trading volumes and operating costs.

Onafriq entered the Nigerian market in 2021 by acquiring Baxi (also known as Capricorn Digital Limited) and invested significantly through 2023 to enhance its agent network. However, from 2024, the economic landscape changed dramatically, leading to a reassessment of the business's sustainability.

Dare Okoudjou, Founder and Chief Executive Officer of Onafriq, stated that the decision to close the business was difficult but necessary. Affected employees will be consulted and supported during the transition, and agents will be transitioned to another principal bank.

Onafriq remains committed to the Nigerian market and will continue to operate through its payment services.