Onafriq shuts down its Nigerian agent banking business after five years
- Onafriq is closing its Baxi agent banking business in Nigeria after five years.
- The decision is attributed to inflation, naira depreciation, and rising operating costs.
- Baxi had over 90,000 agents and processed more than $1.6 billion in transactions in 2021.
The closure of Baxi highlights the significant challenges faced by fintechs in Nigeria, particularly in adapting to rapid changes in consumer behavior and economic conditions. This situation raises questions about the sustainability of agent banking models in emerging markets and the need for fintechs to innovate continuously to remain relevant.
