Onafriq to Cease Baxi Agent Banking Operations in Nigeria

Onafriq has decided to wind down its Baxi agent banking business in Nigeria, citing factors such as naira depreciation, rising operating costs, and shrinking margins due to increased competition in the payment services market. This decision affects the agent banking operations run by Baxi under Onafriq Nigeria Payments Limited but does not indicate an exit from Nigeria, as Onafriq will maintain its cross-border payments network and card issuing services.

The company stated that changes in the operating environment since 2024 have made the offline agent banking model unsustainable. Dare Okoudjou, founder and CEO of Onafriq, acknowledged that the company had not achieved its intended outcomes in Nigeria despite entering the market with strong conviction.

Onafriq entered Nigeria's agent banking market in 2021 through the acquisition of Baxi and continued to invest in the business until 2023. Employees affected by the decision will be consulted and supported fairly.