Pan‑African fintech group [Onafriq](https://www.onafriq.com) has confirmed it will cease its Baxi‑branded agent‑banking activities in Nigeria, citing soaring inflation, the falling naira and heightened competition, with the shutdown slated to begin later this year, affecting employees, agents and partners linked to the network.
The firm explained that macro‑economic pressures have pushed up operating expenses while simultaneously depressing transaction volumes. In addition, the rapid uptake of instant account‑to‑account transfers has shifted the transaction mix away from traditional point‑of‑sale (PoS) agent services.
Narrower profit margins and the surge of rivals have further eroded the viability of the agent‑banking model, prompting the company to reassess its long‑term outlook.
[Onafriq](https://www.onafriq.com) entered the Nigerian agent‑banking space in 2021 after acquiring [Baxi](https://www.baxi.com.ng), also known as Capricorn Digital Limited. The group continued to pour capital into the venture through 2023, aiming to broaden its network of PoS agents.
"This investment reflected the Group’s belief in agent banking’s role in expanding financial access and digitising cash‑based transactions," the company said in a statement.
However, the business environment shifted markedly from 2024, leading executives to review the sustainability of the operation and adjust their strategic priorities.
Founder and Chief Executive Officer Dare Okoudjou remarked, "We entered the Nigerian market with conviction and commitment, but the results fell short of our expectations. Closing this business was a difficult decision that impacts colleagues, agents and partners across the country who devoted themselves to building the Baxi network."
Okoudjou added that the firm remains dedicated to "honesty, fairness and a well‑managed transition" for everyone affected by the closure.
The wind‑down will primarily impact staff whose duties are tied to the agent‑banking unit. [Onafriq](https://www.onafriq.com) said it will meet individually with each affected employee and provide assistance throughout the handover period.
**What will happen to Baxi agents?**
The company disclosed that agents using the Baxi payments platform have already been moved to another principal bank. Those agents are required to transfer any remaining funds to a bank of their choosing within 30 days.
**Will Onafriq leave Nigeria entirely?**
Okoudjou clarified that the decision only concerns the agent‑banking segment and does not signal a full exit from the country. "Nigeria remains central to our mission, and we will continue to serve the market as a Payment Solution Service Provider through the Onafriq payments network and our card‑issuing services," he said.
Going forward, the firm will concentrate on integrating its payments infrastructure and card‑issuing capabilities into Nigeria’s broader financial ecosystem, aiming to support digital transactions beyond the agent‑banking channel.
[Agent banking](https://en.wikipedia.org/wiki/Agent_banking) has been a key pillar of financial inclusion in Nigeria, but shifting market dynamics and macro‑economic headwinds have forced players like Onafriq to recalibrate their strategies.