Onafriq Is Shutting Down Baxi. POS Agents Have 30 Days to Move Their Money
Pan-African payments firm Onafriq is winding down Baxi, its Nigerian agent banking business. Agents have 30 days to move their funds. Here is what changed and why.
A closed roadside POS agent kiosk on a Lagos street at dusk with the headline POS Agents Lose a Bank
If you have ever withdrawn cash from a roadside POS stand, there is a chance the machine ran on Baxi. Now that network is going away.
On Friday, October 16, pan-African payments company Onafriq announced it is winding down Baxi, its agent banking business in Nigeria. Agents on the platform have 30 days to move their money. Onafriq says it is not leaving Nigeria, just this part of the market.
What happened
Onafriq bought Baxi, also known as Capricorn Digital Limited, in 2021. It then spent heavily through 2023 to grow its network of agents, the small business owners who offer cash withdrawals, deposits and transfers through POS terminals.
After a review of its long-term strategy, the group decided the business was no longer sustainable. Founder and CEO Dare Okoudjou put it plainly: "We entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for."
The key numbers and reasons
2021: the year Onafriq entered Nigerian agent banking by acquiring Baxi.
2024: when, the company says, naira depreciation and wider economic pressure changed the economics of the business.
30 days: the window agents have to transfer their funds to their preferred principal bank.
Onafriq pointed to three pressures. Inflation and a weaker naira hurt transaction volumes and pushed up costs. Fast growth in instant account-to-account transfers changed what people use agents for. And tougher competition squeezed margins. The company has not said how many agents or staff are affected.
Why it matters to Nigerians
POS agents are how millions of Nigerians get cash, especially outside big cities and away from bank branches. When a whole agent network shuts down, its agents face disruption and some customers may need a new go-to stand.
The bigger signal is about the model itself. As more Nigerians pay each other directly from their banking apps, the classic cash-in, cash-out POS business earns less per customer. Onafriq is the latest foreign-backed firm to pull back from part of the Nigerian market this year, after mobility company Moove announced it was wrapping up its Nigerian operations.
What to do if you are a Baxi agent
Move your funds early. You have 30 days to transfer your money to your preferred principal bank. Do not wait for the last week.
Confirm your new principal bank. Onafriq says agents have already been moved to another principal bank. Check which one and what it means for your terminal and fees.
Only use official channels. Shutdowns attract scammers. Do not share your PIN or login details with anyone who calls offering to help you move your money.
Keep records. Screenshot your balance and transaction history before the window closes.
What to watch next
Onafriq will keep running in Nigeria as a Payment Solution Service Provider, focused on cross-border payments and card issuing. Watch for how many agents and jobs are affected, whether rival agent networks absorb Baxi agents, and whether other POS operators rethink their models as instant transfers keep growing.
Sources: Nairametrics, BusinessDay, Techeconomy, TechCabal
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Belma
I'm Mujeeb Bello, better known as Belma, and I started TechInNaija to tell the stories behind Nigeria's growing tech scene in a simple, relatable way. I'm Head of Marketing at Scale Through Automation, where I work on AI and business automation, and I spent over five years as a Virtual Assistant helping businesses run their operations and digital tools. I studied Agricultural Education, but curiosity about technology shaped my career. I write for everyday Nigerians, founders, students and anyone curious about tech, so you leave every story knowing why it matters and how it affects you.
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