Onafriq to Exit Nigeria’s Agent Banking Business

Onafriq has decided to discontinue its agent banking operations in Nigeria, which are managed by Onafriq Nigeria Payments Limited under the Baxi brand. The decision follows challenges such as inflation, Naira depreciation, and heightened competition in the market.

The company cited increased operating costs and reduced transaction volumes as key factors influencing its decision. Additionally, the shift towards instant account-to-account payments has altered the transaction mix processed by point-of-sale agents.

Onafriq entered Nigeria’s agent banking sector in 2021 by acquiring Baxi, also known as Capricorn Digital Limited. The firm invested in the business through 2023 to expand its agent network and enhance financial inclusion.