CWG Plc Profit After Tax Surges 113% in H1 2025 Driven by Digital Demand and Cost Discipline

CWG Plc, a leading Nigerian information and communications technology (ICT) firm, has reported a 113% year-on-year increase in profit after tax for the first half of 2025, reaching N3.56 billion. This significant performance is attributed to a growing demand for digital solutions and a disciplined approach to cost management across its operations [1].

The company’s total revenue for H1 2025 rose to N28.4 billion, marking a 65% increase from N17.2 billion in the corresponding period of 2024. This growth was driven by strong performance in its key business segments, including IT infrastructure services, managed and support services, and its platform business. Specifically, IT infrastructure services accounted for N12.1 billion, managed and support services generated N8.3 billion, and the platform business contributed N450 million [1].

Notably, profit after tax for the first quarter of 2025 alone surged by 368% to N1.48 billion from N316.1 million in Q1 2024, highlighting the robust demand for the company's services [1]. A company spokesperson noted plans to further diversify offerings and expand into East Africa and the Middle East, aiming to leverage rising digital transformation trends in the region [1].

CWG’s financial success is closely tied to the digital transformation across Africa, as businesses and governments increasingly adopt technology to improve operations. The company provides IT infrastructure, cloud services, and software solutions to major clients, including MTN, UBA, First Bank, and government bodies such as the Independent National Electoral Commission and the Nigerian Communications Commission [1].

Cost discipline has also played a pivotal role in the company’s performance. By optimising operations and forming strategic partnerships, CWG has reduced the cost of technology acquisition, significantly improving its profit margins [1]. This approach aligns with insights from a 2024 BCG report, which highlights the importance of efficiency and flexible supply chains in driving profitability [1].

Looking ahead, CWG is focusing on strengthening its presence in existing markets while expanding into new ones. The company’s growth strategy is supported by a 2025 McKinsey report, which notes the global competition for critical technologies and the increasing investments in digital infrastructure [1]. This aligns with CWG’s vision to build platforms that support socio-economic development across Africa.

The company’s expansion efforts are complemented by its ecosystem of partners and value-based collaborations, as stated by Seun Koshoedo, CWG’s head of Brand and Marketing, in 2021 [1]. The firm’s performance also reflects a broader trend in Nigeria’s tech sector, where combined after-tax profits for firms like eTranzact and Chams Plc have nearly tripled in Q1 2025 [1].

Despite its success, CWG faces challenges in a rapidly evolving industry, including the rise of artificial intelligence and digital servitisation. While global players like Amazon Web Services are intensifying competition, particularly in cloud services, CWG’s customer-centric approach and cost efficiency remain key strengths [1].

CWG Plc’s H1 2025 results underscore the company’s position as a leader in Nigeria’s tech sector and its potential to drive Africa’s digital transformation through innovation and strategic expansion [1].

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[1] CWG Plc posts 113% profit surge to hit N3.56bn in H1 2025 (https://coinmarketcap.com/community/articles/68935673eb2f700e7db85b53/)