Onafriq cites inflation, naira depreciation and the shift to instant account-to-account transfers. Baxi agents have been moved to another principal bank and have 30 days to move their funds.
Onafriq, a pan-African digital payments network, said on Friday it is winding down Baxi, the Nigerian agent banking business it entered in 2021 by acquiring Capricorn Digital. In a statement carried by TechCabal and other Nigerian outlets, the company said inflation, naira depreciation, rising operating costs, lower trading volumes, margin pressure and the rapid growth of instant account-to-account payments had made the offline agent banking model unsustainable. Baxi agents have been transitioned to another principal bank and asked to move their funds to their preferred principal bank within 30 days, Onafriq said. The company will continue in Nigeria as a Payment Solution Service Provider, focused on its payments network and card issuing. “We entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for,” founder and CEO Dare Okoudjou said, adding that “Nigeria remains central to our mission.” Onafriq said affected employees in the agent business will be consulted and supported; it did not say how many roles are affected.
Sources: TechCabal · Premium Times