A recent analysis of financial statements reveals a significant upswing in the fortunes of three prominent Nigerian technology firms listed on the Nigerian Exchange: eTranzact, Computer Warehouse Group (CWG), and Chams. The combined after-tax profit of these companies nearly tripled in the first quarter of 2025, climbing to a robust N2.46 billion from N990 million recorded during the same period in 2024. This impressive growth is largely attributed to the escalating demand for information technology solutions across the West African continent.
Soaring Revenue Reflects Regional Tech Consumption
The financial reports from Chams Plc, CWG, and eTranzact International Plc indicate a substantial 36 percent increase in their collective revenue. This figure rose from N18.9 billion in the first quarter of 2024 to N25.72 billion in the corresponding period of 2025. Industry reports suggest a notable surge in technology adoption and usage throughout West Africa over the past year, directly fueling the revenue growth of these key players in the Nigerian tech landscape.
Mixed Fortunes for Individual Firms
While the overall picture for the three companies is positive, individual performances present nuanced details.
CWG Demonstrates Explosive Growth: Computer Warehouse Group (CWG) reported a remarkable surge in both revenue and profit. The company's revenue soared by an impressive 83.5 percent to N15.32 billion, up from N8.38 billion in the first quarter of 2024. Profit after tax witnessed an even more dramatic increase of 368 percent, reaching N1.48 billion compared to N316.1 million in the same period last year. Pre-tax profit also experienced substantial growth, exceeding five times the Q1 2024 figure to reach N2.18 billion. These results underscore the strong demand for CWG's diverse range of IT solutions and infrastructure services across Nigeria and the broader West African region.
Established in 1992, CWG has grown into a comprehensive IT solutions provider, offering a wide array of services including hardware, software, communications, cloud and managed services, infrastructure deployment, and training. Following its public listing on the Nigerian Exchange in 2013, the company expanded its operations beyond its Lagos headquarters, establishing regional offices across Africa. Initially a Dell reseller, CWG has cultivated a prestigious client base that includes major corporations such as MTN Group, ExxonMobil, Unilever, Cadbury, Nestlé, and Shell.
Looking ahead, a CWG spokesperson expressed optimism, stating, "We are poised for even more significant revenue and profit growth in 2025. As we move into 2025, we are diversifying our offerings to more sectors, strengthening our presence in our existing markets, and expanding operations into other East African countries and the Middle East." Industry experts suggest that CWG's continued success will hinge on its ability to scale operations effectively, adapt its solutions to local market needs, and maintain a consistent pace of innovation across its proprietary platforms.
eTranzact Exceeds Forecasts Despite Slight Revenue Dip: eTranzact International Plc delivered a strong profit after tax of N830.2 million, surpassing its N365 million forecast and representing a 57 percent increase from the N528.1 million recorded in the first quarter of the previous year. While the company's revenue of N6.5 billion slightly trailed the N7.04 billion earned in Q1 2024, it comfortably exceeded its projected revenue of N2.2 billion. Pre-tax profit reached N1.18 billion, significantly above the budgeted N521.09 million. Notably, a 33 percent reduction in the cost of sales, which fell to N3.4 billion from N5.05 billion, contributed significantly to a robust gross profit of N3.1 billion, exceeding the N1.91 billion target by an impressive 63 percent. Tax expenses for the period amounted to N355.8 million, representing a 127 percent increase above the company's plan.
Established in September 2003, eTranzact operates as an electronic payments solution provider with a presence in Ghana, Kenya, Zimbabwe, Côte d’Ivoire, and the United Kingdom. Its comprehensive suite of solutions covers all aspects of payment processing, including ATM, Internet, POS, and mobile transactions. The company has successfully deployed its mobile payment solutions to a wide range of clients, including banks and non-bank financial institutions, as well as organizations in the government, education, travel, and transportation sectors.
Chams Navigates Profit Dip Despite Revenue Gains: Chams Holding Company Plc experienced a 54 percent decline in its pre-tax profit, falling to N181.5 million. Consequently, the company's earnings per share also contracted from 8.1 kobo to 3 kobo year-on-year. Despite this profit downturn, Chams demonstrated resilience in its revenue generation, achieving an 11.5 percent increase to N3.87 billion. This growth was primarily driven by strong performances in its "New Solutions" segment, which generated N958.3 million (24.8 percent of total revenue), and its Card Production unit, contributing N948.8 million (24.6 percent). Other significant contributors included biometric devices and printers, as well as consumables, each accounting for approximately 19 percent of sales.
Founded in 1985 as a computer hardware and maintenance firm, Chams has evolved into a provider of integrated identity management and payment solutions. Its strategic partnerships with federal and state bodies, including the Nigeria Communications Commission (NCC), the Independent National Electoral Commission (INEC), and various state governments, have been instrumental in the rollout of its identity platforms. Chams also played a crucial role in the Central Bank of Nigeria's Bank Verification Number (BVN) initiative.
Continental IT Demand Fuels Growth
The impressive financial performance of these three Nigerian tech firms underscores the burgeoning demand for IT solutions and services across West Africa. As businesses and individuals increasingly adopt digital technologies, companies like eTranzact, CWG, and Chams are well-positioned to capitalize on this growing market. Their diverse service offerings and strategic partnerships have enabled them to tap into various sectors, contributing to their significant revenue and profit growth in the first quarter of 2025. The trend suggests a promising outlook for the technology sector in the region, with Nigerian companies playing a pivotal role in driving digital transformation.