Onafriq Shuts Down Nigerian Agent Banking Business
Onafriq is winding down its Baxi agent‑banking arm in Nigeria after five years of operation.
In Brief
- •Onafriq is winding down its Baxi agent‑banking arm in Nigeria after five years of operation.
- •The decision follows a review of long‑term strategy amid inflation, naira depreciation, rising costs and a shift to instant account‑to‑account payments.
- •Baxi had over 90,000 agents and processed more than $1.6 billion in 2021, but the business is now deemed unsustainable.
- •Affected employees and agents will be consulted and supported, with a 30‑day transition period for agents to move funds to a new principal bank.
- •Onafriq will continue to operate in Nigeria as a payment‑solution provider, focusing on its network and card‑issuing services.
Why It Matters
The shutdown signals a broader retreat of fintechs from Nigeria’s offline payments market, as high inflation and currency depreciation erode margins for physical agent networks. It underscores the rapid adoption of instant digital transfers, which have overtaken point‑of‑sale transactions, reshaping the competitive landscape for cash‑centric financial services in Africa.
Key Details
- Baxi agents
- >90,000
- 2021 transaction volume
- $1.6 billion
- Naira depreciation 2024
- 129% (₦1,479 per $1)
- Inflation December 2024
- 34.8%
- Transition period for agents
- 30 days
- Shutdown announcement date
- 2026‑10‑16
Context & Background
Agent banking was introduced by Onafriq through the acquisition of Capricorn Digital in 2021 to extend financial services to cash‑dependent customers via a large physical network. The model has struggled as instant transfers and fintech competition have grown.
Original Reporting & Sources
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