Nigeria | 21 October 2026 | Fintech, Payments & Financial Infrastructure
Pan-African payments company Onafriq has announced plans to wind down its Baxi agent banking operations in Nigeria, citing rising operating costs, naira depreciation, intense competition and changing consumer payment habits.
The decision, announced on 16 October 2026, marks a significant strategic shift for a company that entered Nigeria’s agent banking sector through the acquisition of Baxi in 2021.
However, Onafriq has emphasized that the move does not represent an exit from Nigeria. The company will continue providing payment infrastructure, cross-border payment services and card-issuing solutions in the country.
Why Is Onafriq Closing Baxi’s Agent Banking Business?
According to the company, Nigeria’s operating environment has changed considerably since 2024.
Inflation and currency depreciation have increased business expenses, while competition among point-of-sale (POS) providers has placed pressure on transaction margins.
At the same time, the increasing adoption of instant account-to-account transfers has changed how Nigerians make everyday payments.
These developments have affected the economics of operating a large physical agent banking network.
Following a review of its business strategy, Onafriq concluded that continuing the Baxi agent banking operation under its existing model was no longer sustainable.
Five Years After Acquiring Baxi
Onafriq, formerly known as MFS Africa, acquired Baxi, also known as Capricorn Digital Limited, in 2021.
The acquisition was intended to strengthen the company’s presence in Nigeria’s domestic payments market.
Baxi’s agent network provided financial services including cash withdrawals, transfers, bill payments and airtime purchases.
Onafriq continued investing in the network through 2023, seeking to expand access to financial services and support the digitization of cash-based transactions.
However, the subsequent changes in market conditions prompted the company to reassess its approach.
What Happens to Baxi Agents?
Onafriq says agents operating through the Baxi platform have been transitioned to another principal bank.
Affected agents have also been asked to transfer their funds to a principal bank of their choice within 30 days of the company’s announcement.
A notice on Baxi’s official website further states that its Super-Agent and Payment Terminal Service Provider activities under agent banking will terminate effective 30 November 2026.
Agents wishing to continue operating after that date are directed to establish an agency relationship with an eligible principal bank or another approved super-agent.
The company says its teams will provide guidance during the transition.
Employees whose positions are connected to the affected business will also be consulted and supported.
Onafriq Remains Committed to Nigeria
Despite withdrawing from agent banking, Onafriq has made clear that Nigeria remains an important part of its African payments strategy.
Founder and Chief Executive Officer Dare Okoudjou acknowledged the difficulty of the decision and its implications for employees, agents and business partners.
The company plans to continue operating in Nigeria as a Payment Solution Service Provider, concentrating on its broader payments network and card-issuing services.
Its strategy also places greater emphasis on connecting payment systems and facilitating transactions across African markets.
This distinction is important: Onafriq is discontinuing a specific business segment rather than abandoning Nigeria’s financial services industry.
What Does This Mean for Africa’s Payments Industry?
The development highlights the challenges facing agent banking providers as digital payment behaviour evolves.
Physical POS networks remain important for financial inclusion, particularly in communities where access to conventional banking services is limited.
However, maintaining those networks involves operational expenses, agent management, liquidity requirements and increasingly competitive transaction pricing.
For payment companies, the decision illustrates the importance of regularly reviewing whether individual business models remain commercially sustainable.
It also reflects the growing strategic importance of payment infrastructure and cross-border connectivity.
Implications for iGaming and High-Risk Payment Providers
Although Onafriq’s decision is not specifically related to gambling, the development offers relevant lessons for payment providers serving Africa’s iGaming and other high-risk industries.
Operators and payment aggregators depend on reliable local collection methods, transaction processing and settlement infrastructure.
Changes in the financial services ecosystem can affect how providers structure their partnerships, manage operational costs and select payment channels.
For businesses operating across multiple African markets, the ability to combine local payment expertise with scalable cross-border infrastructure remains an important consideration.
However, Onafriq’s continued presence in Nigeria should not be interpreted as confirmation that every merchant category or gaming-related payment service is supported.
Such arrangements remain subject to the company’s commercial policies and applicable regulatory requirements.
A Changing Nigerian Payments Landscape
Nigeria’s financial services sector continues to experience rapid changes driven by digital adoption, competition, currency volatility and evolving regulation.
The Central Bank of Nigeria has also introduced revised agent banking guidelines, including requirements governing relationships between agents and principal financial institutions.
Although these regulatory changes form part of the wider operating environment, Onafriq has not identified the guidelines as the direct cause of its decision.
Instead, the company has primarily attributed the closure to economic pressures and changing transaction patterns.
What Comes Next?
Onafriq’s immediate priority will be managing the Baxi agent transition and winding down the affected operations.
Its longer-term focus will remain on payments infrastructure, card issuing and cross-border transactions.
For the wider African fintech industry, the development demonstrates how even established payment businesses must adapt their operating models as market conditions evolve.
Onafriq may be stepping away from Nigeria’s agent banking segment, but its continued investment in payments infrastructure signals a different strategic direction rather than a complete market exit.
iBetAfrica will continue monitoring developments shaping Africa’s fintech, payments and high-risk business ecosystem.
