Popular PoS Firm Shuts Down Operations in Nigeria, Gives Agents Deadline to Withdraw Funds

Onafriq, the financial technology company behind Baxi, has announced plans to shut down its agent banking operations in Nigeria, giving agents 30 days to transfer their funds to their preferred principal bank.

The decision was announced on Friday, October 16, 2026, amid rising operating costs, inflation, naira depreciation and growing competition in Nigeria’s agent banking sector.

According to a report by Premium Times, the company said the economic situation had changed significantly since 2024, affecting transaction volumes and increasing the cost of operating its offline agent banking business.

Baxi provides financial services through agents using Point-of-Sale (PoS) terminals, including cash withdrawals, money transfers and other payment services.

Onafriq attributed the decision partly to the rapid growth of instant account-to-account transfers, which has changed transaction patterns in the PoS sector, alongside increasing competition and pressure on profit margins.

The company said it had reviewed its long-term strategy and concluded that closing the agent banking business was the appropriate decision.

Agents Given 30 Days to Transfer Funds

As part of the transition, Onafriq said agents registered through the Baxi platform had been moved to another principal bank.

The company directed the agents to transfer their funds to their preferred principal bank within 30 days, adding that its support teams would guide them through the process.

The planned shutdown will also affect employees whose roles are connected to the agent banking business. Onafriq said affected workers would be consulted and supported during the transition.

Company to Remain in Nigeria

Despite the closure of its agent banking operations, Onafriq clarified that it was not leaving Nigeria.

The company's Chief Executive Officer, Dare Okoudjou, described the decision as difficult, noting that it would affect employees, agents and business partners.

“We entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for,” Okoudjou said.

He added that the company remained committed to ensuring a fair and orderly transition for those affected.

Onafriq entered Nigeria's agent banking market in 2021 through the acquisition of Baxi, formerly known as Capricorn Digital Limited.

The company said it would continue its broader payments network and card-issuing services in Nigeria, while maintaining its operations in other markets.