Integrated identity management firm, Chams Plc, has said it incurred $100 million in debt through its involvement in the National Identity project, blaming it on the negligence of the Federal Government.
Based on this, the company said it would no longer work with the government and any government-owned entities.
The Chairman of the Chams Group, Ademola Aladekomo, disclosed this at the company’s ‘Facts Behind The Figures’ presentation at the Nigerian Exchange Limited on Thursday.
Addressing capital market stakeholders during the meeting at the NGX, Aladekomo said:
- “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).
- Unfortunately, we got into the National ID debacle where we lost about 100 million dollars due to the government’s irresponsibility. The government made life impossible for the company, leading to a $100 million 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.
- “What the management has done in the past few years is to stabilize the company and for the past six quarters, we started growing rapidly. Then the vision changed. We no longer deal with the government. 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.”
What you should know
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. NIMC, however, debunked the claim via a press statement.
Before the contract was terminated, Chams, in partnership with MasterCard and NIMC was to provide identification cards that would enable customers to receive and send payments.
Finishing 2023 on a strong note
Meanwhile, the Group Managing Director of Chams HoldCo, Mrs Mayowa Olaniyan, during the NGX presentation described the firm’s half-year results as impressive and improved.
According to her, the company plans to finish the financial year on a strong note with three-digit year-on-year growth from expanded business activities and emerging opportunities within the group.
On the company’s outlook, Olaniyan revealed that Chams HoldCo aims to consolidate cost-optimization measures within the group and cross-selling synergies to sustain its bottom-line performance.