Fintech firm Onafriq to close Nigeria agent banking business

Fintech company Onafriq is shutting down its agent banking business in Nigeria, attributing the decision to rising operating costs, currency depreciation, and increased competition. The acquisition of Baxi, previously known as Capricorn Digital Limited, in 2021 allowed Onafriq to expand its presence in Nigeria's payments industry through a network of point-of-sale agents.

However, the company's operations became increasingly difficult to sustain with the depreciation of the naira and the growth of instant account-to-account payments. Onafriq's CEO Dare Okoudjou expressed regret for not achieving the desired outcome, stating that closing the business was a difficult decision. The company assured that all affected employees will be treated fairly and supported during the transition.

Despite the closure, Onafriq remains committed to serving the Nigerian market as a Payment Solution Service Provider through its payments network and card issuing services.