Chams loses N9.2bn to cancelation of ID card project
CIS to partner AfDB to deepen capital market
Chams Plc has said it lost about N9.2 billion to cancelation of concession agreement it had with the National Identity Management Commission (NIMC).
Chams in information made available to the Nigerian Stock Exchange in Lagos said the company’s decision to shut down the operation of its Chams City The Chartered Institute of Stockbrokers has expressed its readiness to partner African Development Bank (AfDB) in pursuit of its on-going activities aimed at deepening the Nigeria’s capital market.
Under the new plan, the two institutions are to work together in ensuring the viability of the commodities market and listing of Agro Allied companies to boost activities in agriculture in line with the Federal Government’s plan to diversify income base by shifting attention from oil.
Addressing the Capital Market Correspondents at the weekend, the Institute’s Acting President, Mr. Oluwaseyi Abe who congratulated Digital Mall, Ikeja, is base d on called off of the concession agreement.
According to the company, the facility was built for the National ID Project but the National Identity Management Commission (NIMC) called off the concession agreement which the parties signed in 2010, 5 years into the deal leading to a loss of about N9.2 billion of shareholders’ fund.
Chams has made provisions the newly appointed President of AfDB, Dr. Akinwumi Adesina explained that the CIS had been working closely with Dr. Adesina during his tenure as the Minister of Agriculture.
Abe explained that both the CIS and AfDB had many things in common, especially in the areas of creating awareness on the benefits of promoting active commodities exchange and the listing of companies in the agro allied industry.
“We need active and transparent commodities exchange in order to develop our agricultural sector as a huge source of income rather than depend on crude oil. This is in tandem with the for this huge loss over the past few years between 2009, 2010, and 2011 with the company returning to profitability from 2012 to date.
Meanwhile, the company is in arbitration over the dispute on the issue.
The company stated that Chams City will now focus more on its ancillary services of Business Process Outsourcing (BPO) such as contact centre services, computer-based testing, pre-qualification employee tests Federal Government policy of diversification of the economy. The agro allied companies require standardization of products and effective pricing mechanism to thrive. The CIS trains manpower in this regard,” Abe said.
According to him, other areas of partnership with AfDB include listing of power related institutions to access capital through the various relevant market platforms, and partnership with CIS for empowerment on its Diploma Programme to create employment and support financial inclusion programme of the government, especially into the rural communities.
“The CIS is willing to engage and staff training at its new location in Victoria Island, Lagos.
As part of the effort to improve shareholder value Chams Plc. is fully involved in the implementation of the ongoing Bank Verification Number project (BVN) and is also working on a number of other identity management-related projects. The company recently launched the ConfirmMe verification service platform which has been well received by the market. ConfirmMe AfDB on how we can harmonise our Diploma Programme. The ultimate is to empower the holders of our Diploma to create employment and enhance the government’s financial inclusion programme especially into the rural communities”, Abe said.
Collaborating with him, the Institute’s Second Vice President, Mr. Dapo Adekoje reiterated the plan to deepen the market through effective operation of the Commodities Exchange.
The Institute’s Registrar and Chief Executive, Mr. Adedeji Ajadi explained that the professional Diploma was already generating interest in the public as many youths are now writing the examination. is a robust Credit, Credential and Identity verification platform that offers verification services to both individuals and corporate organizations in Nigeria and beyond.
Chams Plc. is positive that with the innovative products mentioned above (developed in-house by its team of software developers) the financial horizon of the company for 2015 would be rewarding to its shareholders and other stakeholders.