Cybersecurity boom lifts Chams’ profit by 188%

… as firms quietly reroute budgets from hardware to digital defence

Chams Holding Company Plc has reported a sharp 188.44 percent rise in profit for the first quarter of 2026, driven largely by a surge in demand for cybersecurity services, signalling a deeper shift in how Nigerian organisations are spending on technology.

The company posted a profit of N429.40 million, up from the same period last year, even as revenue growth remained moderate at 8.52 percent to N4.20 billion. A 7.18 percent drop in cost of sales also helped boost margins, showing improved operational efficiency.

However, the real story behind the numbers lies in a quiet but significant transition: Nigerian firms are increasingly moving funds away from traditional IT hardware and channelling more resources into protecting their digital systems.

This shift is clearly reflected in Chams’ cybersecurity and infrastructure segment, which recorded a massive 240.11 percent jump in revenue to N730.31 million in just one quarter. The figure already represents over 88 percent of what the company earned from the segment in the whole of 2025.

Industry observers say this trend is being driven by a combination of rising cyber threats and growing regulatory pressure. In recent months, financial institutions and government agencies have faced increasing cyberattacks, forcing organisations to strengthen their digital defences.

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

At the same time, National Information Technology Development Agency (NITDA) has been pushing for stricter cybersecurity compliance, including requirements for breach disclosure and information sharing. This has made cybersecurity spending less optional and more of a necessity.

Chams is benefiting directly from this shift through its subsidiary, Chams Access, which provides security solutions to corporate and public sector clients. The unit is emerging as one of the group’s fastest-growing businesses, positioning the company to capture more value in Nigeria’s expanding digital economy.

Despite the strong rise in cybersecurity revenue, the company’s traditional business lines remain its biggest contributors.

Card-related services, particularly SIM card production, generated N1.80 billion in revenue during the quarter. Through its subsidiary CardCentre, the group continues to supply telecom operators, producing millions of SIM cards monthly and thousands of bank cards daily.

Biometric services also remained a key pillar, contributing N1.61 billion in revenue. The company has built a strong presence in identity management, serving clients across banking and government sectors, including institutions like First Bank of Nigeria and Sterling Bank.

Together, these legacy segments continue to provide scale and stability, even as newer digital services drive growth.

Read also: Chams Holding creates new subsidiary called ChamsCorp

Chams’ recent strategic moves suggest it is preparing for a broader transformation beyond its traditional offerings. In 2025, the company outlined plans to raise N7.65 billion to expand its card personalisation capacity and explore cross-border payment opportunities.

More recently, it launched a new subsidiary, ChamsCorp Plc, aimed at tapping into emerging opportunities in artificial intelligence and data centre infrastructure.

These investments indicate that the company is positioning itself for the next phase of digital evolution, where data, security, and infrastructure will play a more central role than physical identity products.

For now, cybersecurity appears to be the most immediate opportunity. As cyber risks continue to rise and regulations tighten, companies are expected to keep increasing their spending on digital protection.

Chams’ Q1 performance suggests that this demand is no longer just emerging, it is already reshaping the company’s growth path and, potentially, the wider technology landscape in Nigeria.