Onafriq shuts Baxi Agent Banking in Nigeria after economics turn unfavourable
Onafriq, the pan-African payments company, is winding down its Baxi agent banking business in Nigeria after currency depreciation, inflation and
Agent banking has become a cornerstone of Nigeria's financial inclusion drive, with networks of POS operators and super-agents extending cash deposit, withdrawal and transfer services to underserved communities where traditional bank branches are scarce. Baxi was one of several agent banking platforms operating in this space, competing with the likes of OPay, Moniepoint and PalmPay in a market that has grown crowded even as it remains central to the Central Bank of Nigeria's cashless and inclusion targets. Onafriq, formerly known as MFS Africa, is a pan-African fintech that processes cross-border payments across the continent and had acquired Baxi to strengthen its last-mile agent network in Nigeria.
The shutdown reflects the broader strain Nigeria's macroeconomic turbulence has placed on agent banking economics: naira depreciation and high inflation have squeezed commission margins while operating costs for agents and platforms have risen sharply, prompting consolidation across the sector. All three outlets agree on the core drivers cited by Onafriq, but none report what becomes of Baxi's existing agents, staff or customers, or whether the company plans to redeploy the technology elsewhere, leaving open questions about the human and competitive fallout of the exit.