The Centre for the Promotion of Private Enterprise has warned that proposals by some members of the National Assembly to target South African investments in Nigeria over renewed xenophobic attacks in South Africa would be “inappropriate, disproportionate, and counterproductive”.
The economic policy advocacy group said retaliatory measures such as revoking the operating licences of South African firms or nationalising South African-owned assets could damage bilateral relations, weaken investor confidence, and undermine African economic integration.
In a statement by its Chief Executive Officer, Dr Muda Yusuf, on Wednesday, the CPPE condemned the recent xenophobic attacks in South Africa, noting that Nigerians had reportedly been among the victims.
The think-tank, however, cautioned against extreme responses to the attacks, following calls by some lawmakers, including Senator Adams Oshiomhole, for Nigeria to revoke the licences of South African companies such as MTN and DSTV.
He said, “The incidents in South Africa are not reflective of official South African government policy; rather, they are acts of criminality perpetrated by non-state actors driven largely by socio-economic frustrations.
“However, extreme responses by the Nigerian government, as proposed by some members of the National Assembly, such as targeting South African investments in Nigeria, revoking operating licences of South African firms, or nationalising South African-owned assets, would be inappropriate, disproportionate, and counterproductive.
“Such measures could damage longstanding bilateral relations, weaken investors’ confidence, and undermine the broader objective of African economic integration. The Centre for the Promotion of Private Enterprise strongly advises against any such course of action.”
The CPPE said the attacks were fuelled by economic and social problems in South Africa, including unemployment, poverty, inequality, weak public service delivery, and governance challenges, affirming that many frustrated citizens in South Africa wrongly channel their anger towards African migrants perceived to be economically successful in retail trade and informal businesses.
“Nigerians appear particularly vulnerable because of their strong entrepreneurial presence in South Africa’s informal economy. Nigerian traders, professionals, and service providers are generally resilient, competitive, and economically active.
Unfortunately, this has created resentment among some locals who wrongly believe that migrants are taking over economic opportunities and jobs,” Yusuf said.
The CPPE also faulted weaknesses in policing and law enforcement in South Africa, urging the South African government to strengthen security measures and prosecute offenders: “The South African government has an obligation to protect the lives and property of all persons residing within its territory, including Nigerians and other African migrants. Stronger policing, improved intelligence, prompt prosecution of offenders, and firm political messaging against anti-migrant rhetoric are critical to preventing a recurrence of these violent incidents.”
The organisation stressed that South African investments had contributed significantly to the Nigerian economy through job creation, financial inclusion, improved service delivery, and government revenues, saying, “Major South African companies such as MTN Group, Shoprite Holdings, MultiChoice Group, and Standard Bank Group have created thousands of quality jobs, deepened service delivery across critical sectors, enhanced financial inclusion, contributed significantly to government revenues, and improved consumer welfare in Nigeria.
“Disrupting these investments would not only hurt the affected companies but would also adversely impact Nigerian workers, suppliers, service providers, and consumers who depend on these businesses.”
The CPPE urged the Federal Government to intensify diplomatic engagement with South African authorities to ensure the protection of Nigerians living in the country while preserving mutually beneficial economic relations.
“The Nigerian government should strengthen bilateral engagements with South African authorities to ensure the safety and protection of Nigerians in that country. At the same time, South Africa must address the deeper structural issues driving these tensions, particularly unemployment, inequality, weak service delivery, and institutional weaknesses,” Yusuf said.
The PUNCH had reported that Oshiomhole called for the revocation of the licences of South African companies operating in Nigeria, including MTN and DSTV, following renewed xenophobic attacks against Nigerians in South Africa.
Speaking during the Senate plenary, the former Edo State governor said Nigeria should respond firmly to protect its citizens.
“This Senate should adopt a position that MTN, a South African company that is cutting away millions of dollars from Nigeria every day, should have Nigeria nationalise it and withdraw its licence,” Oshiomhole had said.
The latest attacks in South Africa reportedly claimed the lives of two Nigerians, Amaramiro Emmanuel and Ekpenyong Andrew, in separate incidents linked to rising anti-foreigner tensions.
