Onafriq, the pan-African payments company that operates Baxi in Nigeria, has announced plans to wind down its agent banking business, marking a major change for merchants and POS agents using the platform.
The company disclosed the decision on Friday, October 16, 2026, citing rising operating costs, naira depreciation, inflation and growing competition in Nigeria’s payment services market.
The shutdown affects Baxi’s agent banking operations, operated by Onafriq Nigeria Payments Limited. However, Onafriq is not leaving Nigeria completely. The company says it will continue providing services through its cross-border payments network and card-issuing business.
The announcement also has immediate implications for Baxi agents, as the company says agents using its platform have been transitioned to another principal bank and have been asked to move their funds to a principal bank of their choice within 30 days.
Why Is Onafriq Closing Baxi’s Agent Banking Business?
Onafriq said changes in Nigeria’s business environment since 2024 have made its offline agent banking operation increasingly difficult to sustain.
The company identified several factors behind the decision, including the depreciation of the naira, inflation, higher operating expenses and pressure on transaction margins.
The rapid growth of instant account-to-account transfers has also changed the types of transactions customers carry out through POS agents.
As customers increasingly use instant transfers to send money directly between bank accounts, the mix of transactions processed through physical agents has changed. At the same time, competition among payment service providers has put additional pressure on the margins operators earn from transactions.
Onafriq said it reviewed the long-term strategy and sustainability of the business before deciding to wind it down.
Dare Okoudjou, the company’s founder and chief executive officer, said the decision was difficult because it affects employees, agents and business partners who helped build the Baxi network.
What Happens to Baxi POS Agents?
Baxi agents are among the stakeholders directly affected by the announcement.
Onafriq said agents onboarded through the Baxi payments platform have been transitioned to another principal bank. It has also asked these agents to transfer their funds to their preferred principal bank within 30 days.
The company said its teams would provide support and guidance during the transition.
Agents should pay attention to the instructions communicated to them and confirm the details of their individual arrangements before making changes to their accounts.
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The key points are summarised below.
| Issue | What Onafriq has announced |
|---|---|
| Baxi agent banking | The business is being wound down |
| Agent transition | Agents have been transitioned to another principal bank |
| Funds held by agents | Agents have been asked to transfer their funds to their preferred principal bank within 30 days |
| Transition support | Onafriq says its teams are available to provide assistance |
| Onafriq’s other Nigerian services | Cross-border payments and card-issuing services will continue |
The announcement does not provide a complete, individual transition timetable for every agent. Baxi merchants should therefore rely on direct communication from the company and the relevant principal bank for account-specific instructions.
Is Baxi Shutting Down Completely?
The announcement concerns Baxi’s agent banking business in Nigeria. It should not be interpreted as confirmation that every service associated with the wider Onafriq business is closing.
Onafriq has stated that it will continue operating in Nigeria through its payments network and card-issuing services.
This distinction is important because the company operates across multiple payment services. Ending its offline agent banking operation does not automatically mean that its wider payment infrastructure will stop working.
However, Baxi agents should not assume that their existing agent banking arrangements will continue unchanged. The company has announced a transition to another principal bank, and agents should follow the instructions applicable to their accounts and services.
When Did Onafriq Acquire Baxi?
Onafriq entered Nigeria’s agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited.
The acquisition gave the company access to an established network of agents offering services such as cash withdrawals, money transfers, bill payments and other financial transactions.
Onafriq continued investing in the business through 2023 to strengthen and expand the agent network. The company said the investment reflected its belief that agent banking could help extend access to financial services and support the shift from cash-based transactions to digital payments.
However, operating conditions changed significantly from 2024. Currency depreciation, inflation, changing payment habits and increasing competition altered the economics of running the business.
Following a review of its strategy, the company concluded that winding down the agent banking operation was the appropriate course of action.
What Does the Baxi Decision Mean for Nigeria’s POS Industry?
The decision highlights the challenges facing companies that operate physical agent banking networks in Nigeria.
POS agents provide access to cash withdrawals, transfers, bill payments and other services, particularly in locations where customers may find traditional bank branches less convenient.
However, running such networks involves costs related to technology, agent support, operations and the broader payments infrastructure. When transaction margins fall while operating expenses rise, maintaining a large network can become more difficult.
The growth of instant bank transfers also means that payment providers must adapt as customers change how they send and receive money.
Onafriq’s decision shows that a company can continue investing in a country’s payments market while withdrawing from a particular business segment that no longer meets its commercial objectives.
For agents, the immediate concern is the transition to their new or preferred principal bank and the continuity of their business arrangements.
Is Onafriq Leaving Nigeria?
No. Onafriq has explicitly stated that the decision does not represent an exit from Nigeria.
The company intends to continue serving the Nigerian market through its cross-border payments network and card-issuing services.
Its strategy is therefore shifting away from directly operating the Baxi agent banking business towards its wider payments infrastructure and related services.
The company has also said it will consult employees whose roles are connected to the closing business and provide support during the transition.
Onafriq did not disclose the total number of employees or agents affected by the wind-down in its announcement.
What Baxi Agents Should Do Next
Baxi agents should take the transition instructions seriously and avoid making assumptions about their accounts or POS arrangements.
Agents should:
- Check official communications: Read the instructions sent by Onafriq or Baxi concerning the transition.
- Confirm their principal bank: Establish which bank now handles their agent banking arrangement and what steps are required to activate or continue using the service.
- Review their funds: Confirm their balances and follow the company’s instructions for transferring funds within the stated 30-day period.
- Ask for assistance when necessary: Contact the company’s support team if any part of the transition, account status or fund transfer process is unclear.
- Keep transaction records: Retain relevant transaction receipts, account statements and communications until the transition is complete.
Agents should use verified support channels and avoid sharing passwords, PINs or one-time passwords with anyone claiming to assist with the transition.
What Happens Next?
Onafriq’s decision marks the end of its current Baxi agent banking model in Nigeria, but the company plans to retain its wider presence in the country’s payments industry.
For agents, the priority is to understand their new banking arrangements, follow the fund-transfer instructions and obtain clarification on any outstanding transactions or account issues.
The development also raises broader questions about the sustainability of physical agent banking as digital transfers become more common and operating costs continue to put pressure on payment providers.
For now, the confirmed position is that Onafriq is winding down Baxi’s agent banking business, transitioning agents to another principal bank and continuing its other payment services in Nigeria.