Pan-African digital payments giant Onafriq has announced plans to wind down its Nigerian agent banking operations, operated under the Baxi brand by Onafriq Nigeria Payments Limited.
​The strategic retreat, announced in a corporate press statement released in Lagos on Friday, October 16, 2026, marks a significant pivot for the fintech firm in Africa’s largest economy.
​Onafriq cited persistent inflationary pressures, severe naira depreciation, and aggressive market competition as the primary drivers behind the decision. Escalating operational expenses, compounded by the rising cost of terminal deployment, logistics, and maintenance, have severely squeezed operating margins.
​Furthermore, shifting consumer behaviors, notably the rapid adoption of instant account-to-account electronic transfers, have significantly reduced overall transaction volumes processed through physical Point of Sale (PoS) terminals.
​Addressing stakeholders in the official announcement, Dare Okoudjou, Founder and Chief Executive Officer of Onafriq, emphasized that the decision followed an extensive strategic review of trading conditions that began deteriorating in 2024.
​”Trading conditions changed significantly from 2024, prompting a thorough review of the long-term sustainability and viability of our physical agent banking operation,” stated Dare Okoudjou, Founder and CEO of Onafriq.
“While agent banking played a crucial role in deepening financial access across Nigeria, rising operational overheads, currency devaluations, and margin compression mean the offline distribution model no longer aligns with our long-term commercial goals.”
​Onafriq (formerly MFS Africa) entered Nigeria’s agent banking sector in October 2021 following its acquisition of Capricorn Digital Limited, the operators of Baxi. Between 2021 and 2023, the group made substantial capital investments to expand Baxi’s agent footprint to drive financial inclusion.
​To ensure a seamless transition and safeguard agent capital, Onafriq confirmed that existing Baxi agents have already been successfully moved to an alternative principal banking partner.
Agents have been given a 30-day grace period (effective through mid-November 2026) to transfer their operational funds to their preferred principal banks, supported directly by Onafriq’s field operations team.
​Onafriq clarified that the wind-down is strictly isolated to its physical agent banking business and does not represent an exit from the Nigerian market.
The company will retain its presence in Nigeria under its Payment Solution Service Provider (PSSP) license, redirecting resources toward core B2B infrastructure, including cross-border remittances and card-issuing services.
