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CWG Plc is quietly becoming one of Nigeria’s most profitable technology companies. Founded in 1992 and listed on the Nigerian Exchange Limited (NGX) in 2013, the former hardware reseller has transformed into a full-stack IT company serving banks, telcos, and governments across Africa.
In 2024, CWG doubled revenue and quadrupled profit, without a cent of venture funding. The company posted its strongest financial results in 2024, with revenue hitting ₦46.4 billion ($29.3 million)—up 97% from ₦23.5 billion in 2023. Pre-tax profit rose 290% to ₦4.42 billion ($2.8 million), while after-tax profit jumped 428% to ₦3.04 billion ($1.9 million).
“This growth resulted from increased sales and our strategic focus on enhancing efficiency, optimising costs, disciplined management of operating expenses, and boosting productivity,” said Adewale Adeyipo, Group CEO, in the company’s 2024 annual report.
That momentum has continued into 2025. In Q1, CWG reported ₦1.48 billion ($921,000) in after-tax profit—a 368% increase from ₦316.1 million ($196,700) in Q1 2024. Quarterly revenue rose 83% year-on-year to ₦15.3 billion ($9.5 million).
So, how exactly does CWG make its moneyand what is powering this dramatic financial turnaround?
From hardware to software—and profitability
For most of its history, CWG was best known as a systems integrator selling Oracle hardware across sub-Saharan Africa. But as Nigeria’s digital economy matured, the company bet big on software and enterprise services. That bet is now paying off.
In 2024, software became CWG’s biggest revenue driver, contributing ₦16.4 billion ($10.3 million)—35.3% of total revenue. Much of this was driven by CWG’s long-term partnership with Indian multinational financial company Infosys, through which it distributes the Finacle core banking application to top Nigerian banks, including First Bank, GTBank, UBA, Fidelity, Stanbic IBTC, FCMB, and Wema, which did major software upgrades last year.
GTCO, which migrated to Finacle in late 2024, cited improved scalability and innovation as key drivers. A core banking expert who asked not to be named said tier-1 Nigerian banks typically spend at least $10 million annually on core banking software.
Beyond distribution, CWG’s proprietary platforms are gaining traction. SMERP, a cloud-based business tool for SMEs, grew revenue by 1,000% in 2024. KuleanPay, an escrow platform, saw a 2,000% spike in transaction volumes, while UCP, CWG’s cooperative management platform, processed 500 million transactions—up 50% year-on-year.
Finedge, its digital financial services arm, onboarded nearly 20 financial institutions in 2024.
Managed support services: A stable revenue engine
CWG’s managed support services business, which includes IT outsourcing, maintenance, and business process support, brought in ₦14.6 billion ($9.2 million) last year—about 31% of revenue. These long-term contracts offer stable income and low churn, especially with banks and telcos that outsource mission-critical systems to CWG.
Though not as high-margin as software, managed services are sticky. Once a bank outsources its IT infrastructure, switching vendors becomes difficult and expensive, making this segment a retention moat for CWG.
Hardware infrastructure: Essential but less profitable
CWG’s hardware business generated ₦12.8 billion ($8.1 million) in 2024—roughly 28% of revenue. This includes the sale of servers, network equipment, PoS terminals, and data center gear to clients like MTN and Etisalat.
Hardware remains crucial, but it’s a tough business in Nigeria, where naira depreciation drives up import costs and squeezes margins. CWG continues to service this segment to maintain relationships, but its focus is clearly shifting to higher-margin offerings.
Building in fintech infrastructure
CWG also runs a smaller but fast-growing fintech infrastructure arm. Unlike consumer-facing players like Flutterwave or OPay, CWG builds backend infrastructure for banks, utility companies, and governments.
In 2024, its platform services segment contributed ₦2.18 billion ($1.4 million)—about 4.5% of revenue. Flagship products include BillsnPay, a utility bill aggregator that processed ₦18.6 billion ($11.6 million) in transaction value across 30.5 million payments last year.
The company’s infrastructure-as-a-service tools support transaction routing, card issuance, and backend automation for traditional banks and fintechs alike.
“CWG is a long-established and reputable technology company, evidenced by its use by 60% of Nigerian banks, including major institutions,” said Kassy Olisakwe, head of blockchain development at Ubuntu Tribe and an investor in the company.
He added that while CWG’s services are premium-priced, “they offer comprehensive solutions encompassing software, infrastructure, IT support, and a highly regarded ATM service.”
Regional growth in Ghana and Uganda
CWG’s success in 2024 wasn’t confined to Nigeria, which contributed over ₦30 billion ($18.8 million) to the total revenue. Its subsidiaries in Ghana and Uganda delivered breakout performances, contributing ₦8.44 billion ($5.3 million) and ₦7.34 billion ($4.6 million) respectively. Both markets more than doubled their 2023 revenue numbers.
“The spike in technology consumption across West Africa drove improved performance at CWG Ghana, with a recorded revenue of over $6.4 million,” Adeyipo said.
He added that CWG Uganda showed positive growth in all indices, achieving a total revenue of $5.89 million.
These results affirm CWG’s regional diversification strategy, which plans to expand to new markets in East Africa and the Middle East this year. While Nigeria remains its largest market, the ability to replicate its enterprise solutions model in other African countries creates new growth avenues and reduces single-market risk.
Credit sales raise red flags
But there are warning signs. CWG’s trade receivables—sales made on credit—rose 44% to ₦16.8 billion ($10.5 million) in 2024, raising concerns about delayed payments. At the same time, payables rose 47% to ₦15.3 billion ($9.6 million), meaning CWG is also stretching payments to its suppliers.
This kind of working capital juggling is common in Nigeria, but if clients default or delay payments, CWG’s cash flow could come under pressure.
Dividend doubles, shareholder confidence grows
Despite risks, CWG ended the year on a strong note as total assets jumped 68% to ₦29.9 billion ($18.3 million), and shareholders’ equity nearly tripled to ₦6.63 billion ($4.2 million).
The company rewarded shareholders with a final dividend of 39 kobo per share—more than double the 16 kobo paid in 2023—signalling growing confidence in cash generation.
At ₦10.20 per share (as of May 23, 2025), CWG ranks as the 40th most traded stock on the NGX over the past three months, reflecting solid investor interest, according to African Stock Exchanges, a real-time market data platform.
Quiet momentum, visible challenges
CWG’s 2024 results mark more than just a strong year—they’re a signal that its decade-long pivot to software and services is beginning to pay off. But the wins come with trade-offs: growing receivables, currency pressures, and slower tech spending from banks could test the business model’s resilience.
Still, in an industry hooked on hype and moonshots, CWG is showing what quiet, cash-generating execution looks like.
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