Pan-African technology company, Onafriq, has announced plans to wind down its agent banking business in Nigeria, operated under the Baxi brand by Onafriq Nigeria Payments Limited, citing inflation, naira depreciation and intensifying competition. The company said the economic pressures had increased operating costs and affected transaction volumes, while the rapid growth of instant account-to-account payments had altered the mix of transactions handled by point-of-sale (PoS) agents. It added that tighter margins and increased competition had further undermined the sustainability of its agent banking operations. Onafriq said it entered Nigeria's agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited, and invested in the business through 2023 to strengthen and expand its agent network.
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