Iris to supply e-passports for Nigeria in RM170mil deal

A towel with a print of the Nigerian naira is displayed for sale at a street market in the central business district in Nigeria's commercial capital Lagos February 4, 2016. Picture taken February 4, 2016. REUTERS/Akintunde Akinleye/File

KUALA LUMPUR: Iris Corp Bhd will supply 2.5 million 32-page Nigerian electronic passports under a US$42.49mil (RM170mil) supply agreement with Abuja, Nigeria-based Iris Smart Technologies Ltd (ISTL).

In a filing with Bursa Malaysia on Thursday, the provider of digital identification solutions said the agreement signed on Wednesday was for a term of three years.

“Iris Corp shall from time to time supply and deliver such quantities of the e-passport in accordance with the letters of credit issued by the ISTL as specified in the agreement,” it said.

ISTL is a system integrator and solution provider for the establishment and management of citizen database and identity management.

On the project risk, Iris said the implementation of the agreement might be subject to unavoidable delays arising from non-compliance of specifications and capabilities pursuant to the performance.

“However, delays may then affect the profit margins of Iris Corp as time shall be spent to resolve arising issues and will delay the recognition of revenue. Notwithstanding the above, the Iris Corp group will seek to limit the risks involved through prudent financial management and efficient operating procedures,” it said.

Iris Corp shares inched up half a sen to close at 14.5 sen on Thursday, with 964,000 shares changing hands.