Chams Holdings Plc, a company focused on identity management and verification services, has announced that it will no longer collaborate with Nigeria’s federal government on any project. Justifying this decision, the company stated that it suffered a whopping $100 million debt which it blames the government for.
Demola Aladekomo, Chairman of the Chams Group, made this known to the public during the company’s “Facts Behind The Figures” presentation at the Nigerian Exchange Limited yesterday. Speaking to industry stakeholders, Aladekomo made a startling revelation.
“The major project that you all supported us to get done, based on the antecedents that you saw, after we pioneered the e-payment system and other technologies and we just delivered the Independent National Electoral Commission project at that time (failed),” he said.
He further stated that the company lost $100 million thanks to the government’s negligence during the National ID project.
“The government made life impossible for the company, leading to a $100m loss. We came to the exchange and told them what was happening. That created a lot of issues for us. We practically lost all the money you gave us at that point in time.” he added.
On the flip side, Aladekumo shed light on his company’s efforts to rejuvenate operations. According to him, the leadership has prioritized the business’ stability for the past six quarters.
The company has witnessed rapid growth since then. To maintain this growth rate without interruption, he said that Chams would no longer work with the government or any entity affiliated with it.
“We only deal with consumer projects; that means serving you. We deal only in digital projects and we are looking at Nigeria and Africa. In the next couple of months, we would have covered Nigeria and then we can focus on West Africa. We have avoided anything to do with the government apart from our regulators,” he explained.
For context, the National Identity Management Commission (NIMC) and Chams Plc have been at loggerheads since 2015 when the former terminated the latter’s contract over non-performance claims. The issue gained more traction when Chams Plc accused the NIMC of playing a major role in its poor performance. Aladekomo further blamed the NIMC for allegedly stealing intellectual property and technical partners belonging to Chams. It is worth mentioning that the NIMC debunked the claim in a press statement.
Read also: FG Moves NIMC to Ministry of Interior over Passport delays
Chams is betting on finishing strong this year
Mayowa Olaniyan, the Group Managing Director of Chams HoldCo, said the company’s half-year results are mainly positive. As such, she stated that the company hopes to maintain the impressive run recorded in the first half of 2023 until the year ends. She added that more focus will be on cost-optimization efforts to reduce expenses while increasing the business value.
“We are poised for innovation that will revolutionize the payment and technology industry with fast, secure and reliable platforms. We have plans to expand product lines through collaborations and partnerships,” she further said.
Technext Newsletter
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!
