The top provider of electronic payment systems in Nigeria, eTranzact International Plc, reported a profit before tax (PBT) of N536.4 million for the fiscal year 2021.
According to the company’s managing director/chief executive officer, Olaniyi Toluwalope, the performance represents a 1286.6% improvement over the N1.87 billion loss reported in the same period. He described the result as the start of a magnificent future.
The company is leading the anticipated shift to a holding structure in the electronic payment system, which is why performance has increased. A new directive from the Central Bank of Nigeria (CBN) forbade businesses from running switching, processing, and mobile money as a single organization.
A business would need to use a holding model in order to offer the services. According to eTranzact, the procedure leading to its unbundling will be finished no later than Q1 2023.
Additionally, the company that processes payments saw a boost in its earnings before taxes of 124.13%. (PAT). From a negative N1.89 billion to N455.75 million, the amount increased.
The company’s chairman, Wole Abegunde, stated during the annual general meeting held in Lagos that the 18-year-old financial institution has started on the path to sustainable profitability.
He also revealed that eTranzact has created a plan for reorganizing its business in accordance with the new legal guidelines for the payment system sector.
The firm announced at the previous AGM that it intended to adopt a holding structure in order to maintain its leadership position across crucial ecosystem areas. According to Abegunde, the conversion to a holding company was proceeding as planned.
Toluwalope, who also spoke, predicted that the transition will be finished by the end of the year or the first quarter of 2023. He continued by saying that the regulator would receive “the scheme of arrangement” in the upcoming weeks.
eTranzact will run its switching and mobile money as distinct entities under a holding company after the transaction is complete.
Toluwalope claimed that the business has launched a number of measures to strengthen its position in the market and promote the expansion of electronic payments.
“The corporation started putting its enlarged Tech Stack strategy into practice in 2021, which will undoubtedly increase the company’s processing capacity, speed, and security. The implementation process has advanced significantly, and the company will make sure that it is finished within the project’s timeframe, he assured the shareholders.
According to the chief executive, eTranzact is dedicated to promoting financial inclusion in the nation, as seen by the expansion of its agent base nationwide.