MFS Africa, a pan-African digital payments hub, and Baxi, one of Nigeria’s super-agent networks, signed an agreement for the acquisition of Baxi.
The transaction would be consummated upon getting approval from the Central Bank of Nigeria (CBN), according to statement on Friday.
Apart from its impact across Africa, the deal would be the second highest fintech acquisition in Nigeria to date.
“Nigeria is home to one of the most dynamic markets on the continent; it is Africa’s largest economy and home to the largest number of SMEs,” part of the statement read, adding that “It is also the largest remittance market in Africa and home to one-third of intra-Africa remittance flows. MFS Africa’s presence in Nigeria to date has been limited given the country’s small number of mobile wallets.
“With the acquisition, MFS Africa will expand its pan-African network into Nigeria, connecting Nigerian businesses to the continent and the rest of the world.”
MFS Africa Founder and Chief Executive Officer, Dare Okoudjou, said, “This deal is a pivotal step in our journey. By combining Baxi’s network of SMEs operating as agents with our pan-African network, we aim to take Nigeria’s SMEs to the rest of Africa and the world.
The Chief Executive Officer, Baxi, Degbola Abudu, said, “We’re thrilled to partner with the MFS Africa team to expand our service offering for individuals and SMEs.
“We believe that we’ve barely scratched the market’s potential. Only three per cent of Nigerian SMEs have access to credit products.”
