Agent Banking Exit: Onafriq Winds Down Baxi in Nigeria as Naira Weakness Squeezes MarginsAgent Banking Exit: Onafriq Winds Down Baxi in Nigeria as Naira Weakness Squeezes Margins
Key Highlights
- Pan-African payments firm Onafriq is shutting Baxi, the Nigerian agent banking business it bought in 2021, citing currency weakness, inflation, instant transfers and thinner margins.
- Onafriq will keep its cross-border payments network and card issuing services in Nigeria, and Baxi agents have 30 days to move their funds to a principal bank.
- Chief executive Dare Okoudjou called the closure a difficult decision, saying the company did not achieve the outcome it set out for in Nigeria.
Pan-African payments company Onafriq is winding down Baxi, the Nigerian agent banking business it acquired in 2021, citing a weaker currency, rising operating costs, thinner margins and stiffer competition.
The decision, shared with Nairametrics on 16 October, matters for East Africa because mobile money and agent networks in Kenya face some of the same pressures: cheap instant transfers reduce the cash handled by agents. Onafriq is not leaving Nigeria entirely.
What Onafriq is closing and what it keeps
The closure covers the operation run under Onafriq Nigeria Payments Limited. Onafriq will keep its cross-border payments network and card issuing services in Nigeria, according to the company's statement. It entered the market in 2021 by buying Baxi, also known as Capricorn Digital Limited, and kept investing in the agent network through 2023.
The company said conditions have changed since 2024, making the offline agent model unsustainable. It pointed to currency weakness and inflation, which hurt transaction volumes and raised costs, and to fast growth in instant account-to-account transfers, which shifted the mix of transactions handled by agents. Heavier competition compressed margins further.
What happens to agents and staff
Agents onboarded through Baxi have been moved to another principal bank, and they have 30 days to transfer their funds to the principal bank of their choice, with Onafriq teams offering support. Staff tied to the business will be consulted and supported, the company said.
Founder and chief executive Dare Okoudjou said: "We entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for." He called the closure "a difficult decision to arrive at" that affects colleagues, agents and partners.
Part of a wider pattern of exits
The move follows other departures from Nigeria. Mobility company Moove announced on 8 October that it will end Nigerian operations after six years, and Uber closed its Nigerian operations about a month earlier, according to Nairametrics.
For Kenya, As Mwenendo earlier reported, Airtel Money slipped below its offer price in London, and Mwenendo earlier reported on how MNT-Halan's Egypt listing drew strong demand. Investors are still backing African fintech where margins hold. The Baxi exit shows where they do not, and Onafriq has not said whether similar reviews are under way elsewhere.
In Summary
- Who is closing the business?
- Onafriq, led by founder and chief executive Dare Okoudjou.
- What is closing?
- Baxi, the agent banking business Onafriq bought in 2021; cross-border payments and card issuing continue.
- When was it announced?
- On 16 October 2026; agents have 30 days to move funds.
- Where does it operate?
- Nigeria, under Onafriq Nigeria Payments Limited.
- Why is it closing?
- Currency weakness, inflation, instant transfers and heavier competition squeezed margins.
- How are agents affected?
- They have moved to another principal bank and have 30 days to transfer their funds.