CWG, Chams Report Record Profits Amid Nigeria’s IT Infrastructure Boom
TLDR
- For the first time in 13 years, Computer Warehouse Group (CWG) Plc and Chams Holding Company Plc have posted billion-naira profits
- This was driven by Nigerian banks upgrading their IT systems and telecom companies expanding SIM card production
- Their combined after-tax profit surged 395% from ₦983.7 million in 2023 to ₦4.88 billion in 2024
For the first time in 13 years, Computer Warehouse Group (CWG) and Chams Holding Company have posted billion-naira profits, driven by Nigerian banks upgrading their IT systems and telecom companies expanding SIM card production. Their combined after-tax profit surged 395% from ₦983.7 million in 2023 to ₦4.88 billion in 2024, as seen in their latest unaudited financial reports.
Chams, known for identity management and transactional solutions, saw its revenue nearly triple from its Card Centre subsidiary to ₦6.48 billion. The growth came from partnerships, SIM card production for telecom companies, and a 37.7% rise in print solutions sales. "Our upscaling efforts are beginning to pay off," said a Chams spokesperson, highlighting the company's expansion into cross-border payments.
CWG, which provides IT services to telcos and banks, experienced a 524% jump in profits to ₦3.59 billion, driven by increased demand for core banking systems as banks upgraded their IT infrastructure. Experts linked CWG’s 20-year partnership with Infosys, supplying Finacle software, to a 400% increase in software revenue, reaching ₦19.1 billion.
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Key Takeaways
The impressive profit growth of CWG and Chams highlights the increasing demand for IT infrastructure and services in Nigeria's financial sector. As banks push towards digital transformation, local providers like CWG and Chams are seeing substantial growth from providing core banking applications, identity management solutions, and network infrastructure. With the continued upgrade of IT systems, these companies are well-positioned to tap into Nigeria's expanding digital economy. However, competition from global IT giants offering comprehensive solutions presents an ongoing challenge. To stay competitive, local players must evolve, leveraging emerging technologies such as cloud computing, artificial intelligence, and cybersecurity, which are becoming critical for banks' digital strategies. The success of CWG and Chams may depend on their ability to stay ahead of these global players and continue meeting the evolving needs of their clients.
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