Investor relations
Chairman’s Statement 2025 AGM
We build robust, secure and adaptable platforms to drive identity management, transactions and verification services for public/private businesses.
Opening
DistinguishedShareholders, Members of the Board, Ladies and Gentlemen,
It is with great honour that I welcome you to the 41st Annual General Meeting of Chams Holding Company Plc. I am pleased to present to you our Annual Report for the financial year ended 31st December 2024.
Global and Domestic Fintech Landscape
According to various global economic management agencies, particularly the IMG and the World Bank, the global economy is on the path to recovery from the COVID-19 pandemic, with a projected growth rate of 3%. However, this recovery has been challenged by the ongoing Russia-Ukraine War, which has increased energy costs, fueling inflation and interest rate hikes. The global fintech sector in 2024 contracted sharply, recording a seven-year low of $95.6 billion in total investments. This decline, driven by macroeconomic pressures, geopolitical uncertainties, and tighter regulatory environments, nonetheless masked areas of robust innovation.Notable growth was observed in embedded finance, open banking, and stablecoins, each signaling the fintech sector’s long-term potential.
An overview of the Nigerian economy in 2023
In contrast, Nigeria’s fintech ecosystem defied global trends, expanding by an impressive 70% year-on-year and attracting over $2 billion in investments. This growth was underpinned by mobile penetration, a tech-savvy youth demographic and regulatory reforms by the Central Bank of Nigeria (CBN) and Nigeria’s Security and Exchange Commission (SEC). The SEC’s 2024 Approval-in-Principle to Quidax and Busha represents a key step in advancing Nigeria’s fintech sector by boosting investor confidence, enabling innovation within a regulated framework, and expanding financial inclusion. It also opens doors for global partnerships and positions local firms for growth. Chams Holdco Plc is well-positioned to leverage this regulatory progress as a forward-thinking digital solutions provider. However, challenges such as infrastructure gaps and intensified KYC/AML enforcement created headwinds that operators, including our Group, had to navigate with agility.
Group Highlights and Strategic Developments
Despite a tough macroeconomic backdrop, Chams Group remained focused and resilient. Our subsidiaries launched and scaled innovative digital solutions aligned with our strategic goal to be a leading digital and financial service provider in Nigeria and across Africa.
Key achievements during the year include:
●ChamsAccess secured a $4.76 million contract for biometric registration with NASSIT, SierraLeone.
●ChamsMobile’sKEGOW wallet gained increasing market acceptance. Kegow is poised to play a significant role in advancing (SDGs) by promoting financial inclusion, digital empowerment, and economic growth.
●ChamsSwitch commenced a strategic transformation process, including corporate registrationin Delaware, USA.
●CardCentre maintained strong performance in SIM and payment card services, deepeningrelationships with international partners.
These developments reflect our commitment to innovation, operationalexcellence, and long-term shareholder value creation.
Overview of our financial performance
In 2024, the Group delivered a consolidatedrevenue of ₦14.93 billion, representing a 42% year-on-year growth, and a netprofit of ₦391 million. EBITDA improved significantly, 44% at the standalone level and 134% at the consolidated level. These results were achieved despite macroeconomic shocks, including severe naira depreciation and inconsistent fiscal policies.
Access to capital remained constrained, andoperational costs, especially energy, placed pressure on margins. Yet, throughdisciplined execution and strategic resilience, Chams returned to fullprofitability.
Dividend payment
The company has not declared a dividend for the 2024 financial year given the absence of distributable profits. However, we are determined to continue pursuing sustainable revenue-yielding opportunities/businesses to help build the desired value for our shareholders in the medium term. I understand that we are expectant but please know that this decision was not taken lightly. It reflects our commitment to preserving the company’s financial strength in growth initiatives. We are confident that these investments will yield sustainable shareholder returns in the near future.
Legal Matters and Contingent Liabilities
As disclosed, the Group is currently managing several legal matters, including:
●ChamsPlc vs NIMC:Arbitration awarded Chams ₦52 billion in damages. We have filed for execution and are defending against attempts to set aside the award.
●ChamsConsortium vs Mastercard & Others:An appeal is ongoing after jurisdictional dismissal.
●ChamsSwitch vs ACI Worldwide:We are contesting both a judgment registration and a related software breachsuit, with appeals filed in one and a retrial ordered in the other case.
The Board assures shareholders that these matters are being handled with legal diligence and in alignment with best corporate governance practices.
Governance and Board Update
In 2024, we welcomed Mrs. Chijioke Ugochukwu to the Board as a Non-Executive Director. Her rich expertise in finance, technology, and administration will undoubtedly strengthen our governance and strategic direction.
Milestone: 40 Years of Chams
This year marks the 40th anniversary of our great Company. From pioneering national identity solutions to leading e-payment innovations, our journey has been one of transformation, survival, and enduring relevance. As we celebrate this milestone, we remain focused on building a future defined by value, integrity ,and impact.
Chams Tower JV Development
The Chams Tower JV Development, launched in fiscal year 2025, reflects the Company’s strategic move to tap into the real estate sector for enhanced profitability. Following a successful bidding process involving JVD Partners, the Company will select the most suitable bidder. This initiative aims to deliver strong returns while upgrading the office complex to modern high-rise standards.
Sustainable Development Goals
We recognize ESG as a strategic imperative aligned with our values and resilience. I am pleased to announce that we will launch our ESG Programme in the coming year, reflecting our commitment to ethical governance, sustainability, andcommunity impact. We look forward to sharing our progress as ESG becomes central to our operations.
Closing Remarks
Chams has never taken the easy path. Our storyis one of perseverance, bold decisions, and legacy building. Mistakes have occurred, but so have breakthroughs. As we look ahead, our focus remains clear:to grow, innovate, and deliver sustainable value.
I thank our Board members, management, staff, customers, regulators, partners, and most importantly, you; our shareholders for your unwavering belief in our vision.
We are confident that with your continued support, Chams will emerge stronger, more competitive, and better positioned for the future.
God bless Chams Holding Company Plc.
God bless Nigeria.
