Onafriq has officially shut down Baxi, a leading point-of-sale (PoS) operator in Nigeria, following a series of financial setbacks, including a failed sale and a dramatic decline in revenue. The closure was announced on October 16, 2026, marking a significant downturn for the agency banking sector in the country.

The decision to close Baxi comes amid mounting financial pressures, with Onafriq revealing that its Nigerian subsidiary faced outstanding bank overdrafts totaling ₦19.9 billion as of July 2026. This figure includes ₦13.8 billion owed to Zenith Bank and ₦6.1 billion to Stanbic IBTC Bank. The financial strain has been exacerbated by a staggering 56% drop in agency-service revenue, which plummeted from $30.4 million in 2023 to $13.4 million in 2024.

In the months leading up to the shutdown, Onafriq had been in negotiations to sell Baxi to an undisclosed buyer, hoping to alleviate its financial woes. However, these negotiations remained unresolved as of late July, and the company ultimately opted to cease operations rather than pursue a sale that could not be finalized. The shutdown raises significant concerns about the sustainability of smaller agency banking operators in Nigeria, particularly as competition intensifies and consumer payment habits shift.

Despite Baxi's exit from the market, Nigeria's overall PoS industry continues to grow. Recent data from the Nigeria Inter-Bank Settlement System (NIBSS) indicates that PoS transaction values surged by 79%, reaching ₦18.78 trillion in the first quarter of 2026. However, the number of deployed terminals increased significantly, from 2.45 million in 2023 to 5.56 million in 2024, suggesting that while the market is expanding, individual operators face fierce competition.

Baxi's closure also affects its agents, who have been given a 30-day deadline to transfer their funds to a preferred principal bank. This situation underscores the challenges faced by agency banking businesses, as agents must now navigate the uncertainty of finding alternative service providers. The fintech landscape in Nigeria is becoming increasingly complex, with major players like Moniepoint solidifying their positions in the market.

Onafriq's acquisition of Baxi in 2021 was initially seen as a promising move, with the company operating over 90,000 agents and processing transactions exceeding $1.6 billion annually. By 2025, Baxi had expanded its network to over 460,000 agents. However, the recent shutdown highlights that growth in transaction volumes and terminal deployments does not guarantee profitability, especially in an environment marked by rising costs and inflation.

As the agency banking sector grapples with these challenges, the exit of Baxi serves as a stark reminder of the pressures that even established operators face in Nigeria's rapidly evolving digital payments landscape.