Onafriq exits its offline agent banking network in Nigeria, citing currency depreciation and market shifts.
Pan-African financial technology company Onafriq announced the shutdown of its Baxi agent banking business in Nigeria. The decision comes after facing severe macroeconomic headwinds, including soaring operating costs and currency depreciation.
The strategic exit impacts solely the company's offline point-of-sale operations across Nigeria. Founder and CEO Dare Okoudjou confirmed that the digital payments firm will maintain its broader presence in the country.
Operational challenges intensified from 2024 onward, driven by shifting market dynamics and intense industry competition, according to information published by punchng.
Economic pressures behind the Baxi shutdown
The decision to wind down operations followed a comprehensive review of long-term strategy and sustainability. Onafriq noted that the rapid depreciation of the Nigerian naira severely altered the business model economics.
Furthermore, the explosive growth of instant account-to-account bank transfers fundamentally changed transaction volumes at physical point-of-sale terminals. Intensified market competition further squeezed profit margins for agents and operators alike.
Impact on employees and the agent network
The restructuring initiative directly affects internal staff members linked to the offline banking network. Management assured that all impacted personnel will receive fair treatment, proper consultation, and comprehensive transition support.
Agents previously onboarded through the Baxi platform are currently being transitioned to alternative principal banks. Affected partners were instructed to transfer remaining funds to preferred financial institutions within a strict thirty-day window.
Onafriq maintains commitment to the Nigerian market
Despite closing the offline network, Onafriq emphasized that Nigeria remains vital for its core corporate mission. The organization originally acquired Capricorn Digital Limited back in 2021 to expand its regional footprint.
Moving forward, the enterprise will continue operating locally as a licensed Payment Solution Service Provider. Nigerian clients will still access core infrastructure through the broader Onafriq payments network and specialized card issuing services.
Frequently Asked Questions
Why did Onafriq shut down Baxi in Nigeria?
Onafriq closed its Baxi agent banking business due to rising operating costs, severe naira depreciation, and intense competition that weakened offline payment economics.
Does this mean Onafriq is leaving Nigeria entirely?
No, Onafriq is only exiting its agent banking network while maintaining operations as a Payment Solution Service Provider and card issuing service.
What happened to Baxi agents and their funds?
Agents have been transitioned to new principal banks and instructed to transfer their funds within a thirty-day window with full support from the company.
Who founded and leads Onafriq?
Dare Okoudjou serves as the founder and Chief Executive Officer of Onafriq, which acquired Capricorn Digital Limited in 2021.
