Fintech company exits agent banking but stays in Nigeria
Fintech company Onafriq is shutting down its Baxi agent banking business in Nigeria, citing rising costs, naira depreciation, and growing competition. Read More:…
Agent banking has become a key channel for extending financial services to Nigerians outside the traditional banking system, with networks of local agents offering cash deposits, withdrawals, transfers and bill payments in underserved communities. The model gained prominence as part of the Central Bank of Nigeria's financial inclusion push, but operators in the space have increasingly struggled with thin margins, pressured further by naira volatility, high operating costs and intensifying competition from banks, telcos and other fintechs running similar agent networks.
Onafriq, a pan-African fintech payments company, operates Baxi as one of its agent banking brands in Nigeria. Both Punch and Premium Times report that the company is winding down this specific business line, attributing the move to rising costs, currency depreciation and competitive pressure. Premium Times adds Onafriq's clarification that the shutdown is limited to agent banking and does not signal a broader withdrawal from Nigeria, leaving open questions about what other products or services the company plans to retain or expand in the market, and the timeline for the agent banking exit.