Onafriq Shuts Nigerian Agent Banking Operations

Onafriq Nigeria Payments Limited will cease Baxi agent banking services in Nigeria following five years of operation, ending the business due to naira depreciation, rising costs, and heightened competition. The company stated these factors have made the model unsustainable.

The decision follows changes in Nigeria’s economic environment since 2024, which Onafriq claims have disrupted the economics of its offline agent banking business. This shift reflects the company’s strategic pivot after initially targeting expanded financial access through agent networks.

Onafriq attributed the shutdown to macroeconomic pressures and structural shifts in Nigeria’s payments industry, noting that inflation and currency depreciation have reduced transaction volumes and increased operational expenses, undermining the business’s viability.