Out of Africa: Electra completes sale of Nigerian contracting operations for $15 million
The Israeli company sold the subsidiary that concentrated its contracting, operation, service and maintenance activities in Nigeria for NIS 45 million.
Israeli company Electra has completed the sale of its contracting operations in Nigeria for approximately $15 million, a move marking the end of its business activity on the African continent. The sale is expected to generate cash flow of roughly NIS 40 million, but will result in a capital loss of NIS 35–40 million in the third quarter, primarily due to the depreciation of the Nigerian currency against the shekel.
The company's decision to exit the Nigerian market came against a backdrop of a sharp decline in activity volumes over the past decade, security difficulties in the country, and a challenging business environment that hampers long-term financial planning. According to Electra, the loss stems mainly from exchange-rate differentials between the Nigerian currency, the naira, and the shekel, after the former fell sharply starting in 2023 while the latter strengthened over the same period.
As part of the move, the company completed today, Tuesday, the sale of its granddaughter company OTS Omni Trading Services Marshall Limited, which consolidated its operations in the African country. Ahead of the publication of its second-quarter results, Electra reported completion of the deal, for total consideration of $15 million - about NIS 45 million at the current exchange rate. The sale is expected to generate pre-tax cash flow of approximately NIS 40 million (about $13.5 million) for the company, along with a third-quarter capital loss of NIS 35–40 million.
In 2010, revenue turnover from African operations, mainly in Nigeria, reached NIS 283 million, and in 2015 it stood at NIS 215 million. Since 2022, annual revenue turnover from this activity has been below NIS 100 million. The Nigerian operation was Electra's third-largest and smallest target market in terms of contracting activity volume abroad, compared with revenue of NIS 1.8 billion generated by its U.S. operations in 2025 and NIS 589 million from its European operations.
The limited scale of the operation was a key factor in the decision to end activity in Nigeria, in addition to the difficulties of operating in the country given its problematic security situation and what Electra described in its latest annual report as "a challenging business environment with difficulty in long-term financial planning."
With the end of its African operations, Electra joins Shikun & Binui, which concluded its own longstanding activity in Africa in the first quarter of this year after selling the granddaughter company that had consolidated its Nigerian operations, retaining only a single project - nearing completion - to build an airport in Uganda.
