Chams proves Nigeria’s digital economy still runs on SIM cards, bank plastic

Nigeria’s digital economy may be dominated by apps, QR codes and online payments, but Chams Holding Company Plc’s latest results show that the country’s fastest-growing digital activity still depends on something far more tangible, which are SIM cards and bank plastic.

In its unaudited full-year 2025 results, Chams, a Nigerian identity management and transactional technology provider, grew revenue by 17.89 percent to N17.48 billion, driven largely by a sharp rise in demand from telecom operators and banks. Profit after tax climbed 54.86 percent to N605.58 million, underscoring how the company is benefiting from Nigeria’s expanding SIM distribution and payments infrastructure.

The clearest signal came from card sales. Revenue from what Chams classifies as “data card products supply of cards” surged by 573.16 percent to N5.90 billion in 2025, reflecting increased SIM card purchases by telecom operators as subscriber growth and SIM replacements accelerated across the market. Banks also continued issuing payment cards at scale, keeping demand for physical cards strong despite the rise of mobile banking and digital wallets.

Those two channels, telecommunications and banking, have become some of the busiest lanes in Nigeria’s digital economy.

As operators register new subscribers and financial institutions onboard customers, Chams earns its keep by supplying the physical layer that sits beneath digital services: SIM cards, payment cards and identity-linked hardware.

“The expansion into the production of SIM cards for telecommunications providers and initiatives in cross-border payments are key contributors to performance enhancement,” the company said in March 2025.

Beyond cards, Chams remains a major player in biometric identity solutions, which continue to form the backbone of its business. In 2025, biometrics-related products, including counting, phone, computer and sorting machines, generated N10.65 billion, making them the company’s largest revenue line. That dominance highlights how deeply identity verification remains embedded in government services and financial transactions.

Chams’ client list reflects that positioning. Its banking customers include Keystone Bank, First Bank and Sterling Bank, while public-sector partners span key institutions such as the Independent National Electoral Commission, the Nigerian Customs Service, the National Health Insurance Scheme and the Nigerian Communications Commission, alongside several pension fund administrators.

However, the same hardware-heavy model that is driving growth is also squeezing margins. The company’s product mix pushed cost of sales up by 30.77 percent in 2025, contributing to a 13.06 percent decline in gross profit, even as overall revenue expanded. It is a reminder that while Nigeria’s digital economy still runs on physical infrastructure, scaling that infrastructure comes at a cost.

Still, the long-term trajectory remains strong. Since 2020, Chams’ turnover has jumped by 728.75 percent, positioning it as a quiet beneficiary of Nigeria’s digital expansion. After posting 42 percent year-on-year revenue growth in 2024, Chams chairman Demola Aladekomo signalled that fundraising would be part of the company’s next growth phase.

That strategy took shape in August 2025, when Chams announced plans to raise N7.65 billion through a rights issue and private placement. By December 23, the Nigerian Exchange Group said an additional 2.35 billion ordinary shares had been listed following the rights issue.

As of January 30, 2026, the company’s market capitalisation stood at N45 billion, with its shares trading at N5.

For all the talk of cloud banking and paperless finance, Chams’ numbers tell a simpler story about Nigeria’s digital economy. Growth still starts with identity, connectivity and physical access and for now, that means SIM cards in phones and plastic cards in wallets.