Chams Plc., a Nigerian technology company specializing in identity management services, says it has recovered from losses totalling over N9.2 billion allegedly caused by a breach of its concession agreement with the Federal Government on the Nigeria National ID Card project.
Chams Plc. recently said its incurred financial losses totaling N9.2 billion and also decided to shut down the operation of its Chamscities, “caused as a huge loss to Nigeria’s technological development.”
The Nigerian company said its losses caused by an alleged breach of terms of its concession agreement on the National ID Card project by the National Identity Management Commission (NIMC), the government ID management agency.
[blockquote right=”pull-right” cite=”Mr. Olufemi Williams, Managing Director designate of Chams Plc.”]“Yes, we built ChamsCity to facilitate the National ID Project and lost a whooping N9.2 billion of shareholders’ fund in the process as the NIMC decided to call off the concession agreement signed in 2010, 5 years into the deal. Consequently, we took the business decision to close down ChamsCity, but we are currently in arbitration over the disputes on the issue.”[/blockquote]
NIMC has denied the allegations by Chams Plc. by claiming that they are “campaign of calumny” by the Nigerian company following the cancellation of its National ID Card project.
Meanwhile, Chams has again said that the National ID Card Project would have benefited from the facilities available at ChamsCity digital malls “if everything had gone according to the implementation plan.”
In a press statement by the company, Mr. Olufemi Williams, Managing Director designate, said that, “Yes, we built ChamsCity to facilitate the National ID Project and lost a whooping N9.2 billion of shareholders’ fund in the process as the NIMC decided to call off the concession agreement signed in 2010, 5 years into the deal. Consequently, we took the business decision to close down ChamsCity, but we are currently in arbitration over the disputes on the issue.”
According to the company’s incoming MD, “We declared huge losses in 2009 and 2010 as a result of the protracted delays on the project but the bad days are gone and company has returned to profitability since 2012. The difficult situation experienced helped us to restrategise and we were able to declare profit in 2012 and 2013 and also paid dividend to shareholders in 2014. We are certainly back on our feet.”
Speaking on the company’s financial position, Williams declared “for a company to be able to withstand a loss of N9.2bn is not an easy feat and certainly not commonplace. It is a pointer to the company’s financial strength and the proof of this is evident in our financial results. In spite of the burden of the loss, the Group has since 2012 returned to profitability, and this growth pattern had been sustained. We continue to record improved performances and posts impressive financial results as shown in our last audited result.”
Mr. Williams added that, “for 2014 financial year, our audited result showed 20% increase in gross revenue from N3.44 billion in 2013 to N4.12 billion in the 2014 financial year. Profit after tax rose by over 48.7 per cent and Shareholders’ fund rose by 26.5 per cent from N4.7 billion in 2013 to N5.9 billion in the 2014 financial year. In addition we also paid a dividend of 2 kobo per ordinary share of 50 kobo held totaling N93.921 million.”