Computer Warehouse Group (CWG) Plc and Chams Holding Company Plc have achieved a significant financial milestone, reporting billion-naira profits for the first time in over a decade. This remarkable turnaround is attributed to Nigerian banks investing heavily in IT infrastructure upgrades and telecom companies expanding their SIM card acquisitions.
According to their latest unaudited financial reports for the full year of 2024, the combined after-tax profit of the two companies soared by 395%, jumping from ₦983.7 million in 2023 to an impressive ₦4.88 billion in 2024.
Chams’ Performance Highlights
Chams, a leading provider of technology-driven services such as identity management, security, and transactional solutions, saw a significant boost in revenue from its subsidiary, Card Centre, which nearly tripled to ₦6.48 billion. The company also recorded a 37.7% growth in print solutions and access sales.
A Chams spokesperson attributed the performance to the company’s strategic upscaling efforts, including technical partnerships with key clients, expansion into SIM card production for telecom providers, and initiatives in cross-border payments.
Chams serves a diverse clientele, including major banks like Keystone Bank, First Bank, and Sterling Bank, as well as government agencies such as the Independent National Electoral Commission (INEC), Nigerian Customs Service, and National Health Insurance Scheme (NHIS).
According to Ayokunmi Kunle-Salami, a Lagos-based IT engineer, the demand for ATM cards has risen as banks push for a cashless economy, driving revenue for Chams’ Card Centre.
CWG’s Remarkable Growth
CWG, which provides managed services, IT infrastructure support, and integration to telecoms and banks, reported a 524% increase in earnings, reaching ₦3.59 billion. This growth was fueled by Nigerian banks overhauling their core banking systems, leading to increased demand for software and IT support.
CWG’s long-standing partnership with Infosys played a pivotal role, boosting its software revenue by 400% to ₦19.1 billion. The company supplies Finacle, Infosys’ core banking application, to clients such as First Bank of Nigeria, United Bank for Africa (UBA), and GTBank, which switched to Finacle in October 2024.
Experts noted that software vendors, including CWG, raised prices by over 100% due to rising licensing and support costs. Additionally, many banks outsource about 80% of their IT departments to third-party vendors like CWG due to a lack of in-house resources and skilled personnel.
CWG’s revenue from managed and support services rose by 106%, while its IT infrastructure services, including cloud colocation, network infrastructure, and disaster recovery, grew by 15.7%. The company operates in Nigeria, Ghana, Uganda, and Cameroon, with Nigeria contributing the highest revenue of ₦15.7 billion in 2023.
Strategic Expansions and Market Trends
At its 19th annual general meeting in 2024, CWG’s Group COO, Afolabi Sobande, announced plans to expand the company’s product portfolio to capitalize on evolving market trends. Similarly, Chams revealed plans to scale its Card Centre production facility to meet rising demand from banks.
As of March 14, 2025, CWG’s share price closed at ₦9.00, with a market capitalization of ₦22.7 billion, ranking 75th on the Nigerian Exchange (NGX). Chams’ share price rose by 0.46% to ₦2.15, with a market capitalization of ₦10.1 billion, ranking 95th.
Challenges and Competition
While both companies benefited from increased IT spending by banks, they face stiff competition from fintech firms and global IT giants like Accenture and Microsoft, which offer comprehensive IT solutions. Emerging technologies such as cloud computing, artificial intelligence, and cybersecurity are becoming critical for banks’ digital transformation initiatives, requiring local providers like CWG and Chams to constantly innovate to remain competitive.
In conclusion the billion-naira profits reported by CWG and Chams mark a significant milestone, reflecting their successful adaptation to market demands and strategic expansions. However, the rapidly evolving tech landscape presents both opportunities and challenges, underscoring the need for continuous innovation and investment in cutting-edge technologies to sustain growth and competitiveness.