For the first time in 13 years, Computer Warehouse Group (CWG) Plc and Chams Holding Company Plc have reported billion-naira profits owing largely to Nigerian banks upgrading their IT infrastructure and telecom companies acquiring more SIM cards.
Their latest unaudited financial reports for full-year 2024 showed a 395% jump in combined after-tax profit—from ₦983.7 million in 2023 to ₦4.88 billion in 2024.
Chams, a provider of technology-driven services such as identity management, security, and transactional solutions, nearly tripled its revenue from its subsidiary Card Centre to ₦6.48 billion. This significant increase contributed to the company’s overall profit surge, and a 37.7% growth in print solutions and access sales.
“The company has begun to realize the advantages of its upscaling efforts despite the initial impact on profitability,” a Chams spokesperson told TechCabal. “Its subsidiaries have successfully established technical partnerships, a prerequisite for securing substantial clients. Furthermore, the expansion into the production of SIM cards for telecommunications providers and initiatives in cross-border payments are key contributors to performance enhancement.”
Chams, a leading player in biometric identity management, boasts a diverse clientele across government and the financial sector. Its major banking clients include Keystone, First Bank, Sterling, and other financial agencies. On the government side, it works with the Independent National Electoral Commission, Nigerian Customs Service, National Health Insurance Scheme, Nigerian Communications Commission, and Pension Fund Administrators.
Ayokunmi Kunle-Salami, a Lagos-based information and technology engineer, said while Chams has multiple subsidiaries, its card centre generates the most revenue from printing cards for commercial banks.
“More banks are pushing for a cashless economy, contributing to the increase in the demand for ATM cards,” he said.
The earnings of CWG, which provides managed services, IT infrastructure support and integration to telcos and banks, soared 524% to ₦3.59 billion. This surge came as several Nigerian banks overhauled their core banking systems, increasing demand for software and IT support.
CWG did not respond to a request for comments.
But experts familiar with the company’s operations told TechCabal that its 20-year partnership with Infosys boosted its software revenue by 400% to ₦19.1 billion. CWG supplies Finacle, Infosys’ core banking application, to its clients.
“Demand for firms like CWG rose last year due to service upgrades by some tier-one banks (First Bank of Nigeria, United Bank for Africa and GTBank), which use Finacle. Beyond new contracts, software vendors also raised prices—some by over 100%—due to rising licensing and support costs,” said Kunle-Salami who also works at Cowry Asset Management Limited.
In October 2024, GTBank switched its banking software vendor from ICS Financial Systems, located in Jordan, to Finacle. Other commercial banks that use Finacle include FBNQuest Merchant Bank, Fidelity Bank, First City Monument Bank, Globus Bank, Stanbic IBTC, and Wema Bank.
CWG’s revenue surged due to banks’ acceptance of IT infrastructure, such as the Finacle platform, and their aggressive push towards digital transformation, saidKassy Olisakwe, head of Blockchain Development at Ubuntu Tribe, who is also an investor in the company
“The increased adoption of digital transformation has led to expansion,” he said.
CWG also implements and supports core banking applications, which led to a 106% rise in revenue from managed and support services.
“Many companies, including banks, outsource approximately 80% of their IT departments to third-party vendors like CWG, due to the lack of resources and capabilities to recruit and retain skilled ICT personnel,” Kunle-Salami said.
Regarding its IT Infrastructure services, CWG provides cloud colocation, network infrastructure, and disaster recovery services. Revenue for this segment rose by 15.7%. Apart from Nigeria, the company operates in three other African countries: Ghana, Uganda, and Cameroon. According to its latest investor relations report, Nigeria pulled the highest revenue of ₦15.7 billion in 2023, followed by Ghana with ₦4.12 billion, and Uganda (₦3.54 billion). Cameroon reported zero revenue.
At its 19th annual general meeting in 2024, CWG’s Group COO Afolabi Sobande said the company is expanding its product portfolio to capitalize on evolving market trends. Chams also announced plans to scale its Card Centre production facility to meet rising demand from banks.
As of Friday, March 14, 2025, CWG’s share price was changed at ₦9.00, while Chams’ share price rose by 0.46% to ₦2.15. CWG’s market capitalization is ₦22.7 billion, ranking 75th on NGX, while Chams, at ₦10.1 billion, ranks 95th.
While both companies benefited from banks’ IT spending, competition from fintech and global IT firms such as Accenture and Microsoft, offering comprehensive IT solutions, can outcompete local providers. Emerging technologies, including innovation, cloud computing, artificial intelligence, and cybersecurity, are becoming critical for banks’ digital transformation initiatives. Local providers such as CWG and Chams must constantly adapt to stay ahead of the curve and avoid obsolescence.
