Eu a utilizo de forma um pouco diferente. Veja como a uso:

service/api.js

import axios from "axios";

const api = axios.create({
  baseURL: "http://localhost:3001/api",
  headers: {
    "Content-Type": "application/json"
  },
});

export default api

queries/users.js

import { useQuery } from "react-query";
import api from "../../service/api";

async function getUsers(ctx) {
  const [, page ] = ctx.queryKey
  const { data } = await api.get('/user', { params: { page } })
  return data
}

export default function useFetchGetUsers(page) {
    return useQuery(['user', page], getUsers, { refetchOnWindowFocus: false})
}

pages/user.js

import useFetchGetUsers from "queries/users";

export const User = () => {
    const { isError, isLoading, data } = useFetchGetUsers(1)
  
    return (
    <div>

    </div>
  );
}