Onafriq is winding down its Baxi agent-banking business in Nigeria as rising operating costs, shrinking transaction margins and growing use of instant bank transfers undermine the economics of running a physical payments network.
The company disclosed the decision in a statement shared with Techpoint Africa on Friday, October 16, 2026, saying changes in Nigeria’s operating environment had made the business difficult to sustain.
Onafriq attributed the decision to naira depreciation, inflation, changing consumer behaviour and intensifying competition in the agent-banking market.
The growth of instant account-to-account transfers has reduced reliance on some services offered by point-of-sale (POS) agents, while rising operating expenses and competition have put pressure on transaction volumes and margins.
Onafriq said it had invested in strengthening and expanding Baxi’s network through 2023, but the economic environment changed significantly in 2024.
The company’s founder and chief executive, Dare Okoudjou, described the shutdown as a difficult decision, acknowledging its impact on employees, agents and business partners, according to Techpoint Africa’s report.
The financial pressures are reflected in Onafriq’s 2024 results. The Condia reported on September 4, 2026, that the company’s revenue fell 7% to $79 million from $85.6 million in 2023, while total processed payment value dropped 28% to $8 billion from $11.2 billion.
The report attributed much of the decline in payment value to naira devaluation, which reduced the dollar value of transactions processed through Nigeria, one of Onafriq’s major markets. The company also recorded an operating loss of $29 million in 2024, up from $23 million in 2023.
The figures provide context for the wind-down, although they do not establish that the financial performance alone triggered the decision.
Onafriq acquired Baxi, operated by Capricorn Digital Limited, in 2021 to expand its presence in Nigeria’s offline payments market. Baxi agents provide services including cash withdrawals, bill payments, airtime purchases and money transfers.
As part of the wind-down, Onafriq said Baxi agents had been transitioned to another principal bank and were asked to transfer their funds to their preferred principal bank within 30 days. The company said its teams would assist agents through the process, while employees affected by the decision would be consulted and supported.
The closure comes amid regulatory changes in the sector. The Central Bank of Nigeria’s revised agent-banking guidelines, issued on October 6, 2025, made agent exclusivity effective from April 1, 2026, requiring agents to work with a single principal financial institution. The rules form part of broader efforts to strengthen oversight and improve service quality.
However, the regulation should not be treated as the direct cause of Baxi’s shutdown, as Onafriq cited economic pressures, consumer shifts and competition.
Onafriq is not leaving Nigeria entirely. The company plans to continue operating as a Payment Solution Service Provider, focusing on its payments network, cross-border transactions and card-issuing services.
The decision follows Moove’s announcement on October 8, 2026, that it would end its Nigerian operations and transfer eligible vehicles worth about ₦35 billion to customers. Although the two companies operate in different sectors, their decisions highlight the challenges businesses face in sustaining operations in Nigeria’s changing economic environment.
For Baxi agents, the immediate priority will be completing the transition and maintaining uninterrupted services for customers who depend on POS operators for access to cash and basic financial transactions.
