The Centre for the Promotion of Private Enterprise (CPPE) has cautioned the Federal Government against taking retaliatory measures against South African companies operating in Nigeria following renewed attacks on Nigerians and other African migrants in South Africa.
This was made known in a statement signed by the organisation’s Chief Executive Officer Dr. Muda Yusuf on Wednesday.
The economic policy advocacy group warned that sanctions targeting South African investments could hurt Nigeria’s economy and weaken investor confidence.
The statement comes amid growing public outrage and calls in some quarters for tougher measures against South African businesses operating in the country.
What the CPPE is saying
The CPPE condemned the attacks on Nigerians in South Africa but stressed that retaliatory economic actions against South African firms would be counterproductive.
- “For Nigeria, retaliatory action is neither advisable nor strategic.”
- “These criminal acts should not be tolerated, and the South African authorities must demonstrate unequivocally that such conduct will not be condoned under any circumstance.”
- “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 licenses 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 organisation noted that the attacks were largely criminal acts carried out by non-state actors and should not be interpreted as the official policy of the South African government.
More Insights
The CPPE warned that punitive actions against South African firms could negatively affect Nigerian workers, businesses, and consumers who depend on their operations.
- The group cited major South African-linked companies operating in Nigeria, including MTN Group, Shoprite Holdings, MultiChoice Group, and Standard Bank Group
- CPPE said the firms contribute significantly to employment, government revenue, and consumer services
- The organisation warned that disrupting these investments could affect local suppliers, contractors, and millions of Nigerian consumers
- It also noted that such actions could undermine regional economic integration efforts under the African Continental Free Trade Area (AfCFTA)
According to the group, maintaining stable economic relations between Nigeria and South Africa remains important for broader African trade and investment cooperation.
What you should know
On May 3, Nairametrics reported that the Ministry of Foreign Affairs summoned South Africa’s Acting High Commissioner for a diplomatic meeting amid rising concerns over xenophobic violence targeting Nigerians.
The Federal Government said the meeting is aimed at formally addressing concerns over recent developments and their implications for bilateral relations.
There has been a resurgence of xenophobic attacks in South Africa in recent weeks, affecting several African nationals, including Nigerians.
- The Nigerian government has raised concerns and called for stronger security measures in affected areas.
