Key points
- Business professionals say expelling South African firms would hurt Nigeria’s economy more than South Africa’s.
- They urge the government to address xenophobic attacks through diplomacy and legal channels.
- Experts warn that shutting businesses could lead to job losses, lower tax revenue and reduced investor confidence.
- They also call for stronger support for Nigerians abroad and greater local participation in strategic sectors.
Main story
Business professionals and media practitioners have cautioned against calls to shut down South African companies operating in Nigeria in response to renewed xenophobic attacks on Nigerians in South Africa.
The stakeholders, who spoke separately with the News Agency of Nigeria (NAN) in Lagos on Monday, said such measures could inflict greater economic damage on Nigeria than on South Africa.
Their comments followed renewed calls for economic retaliation after fresh xenophobic attacks in South Africa, including threats by the National Association of Nigerian Students (NANS) to shut the operations of MTN Nigeria and MultiChoice.
NANS National President, Comrade Babatunde Akinteye, also urged Nigerians to close their Stanbic IBTC Bank accounts and boycott other South African-owned businesses if the attacks continued.
Mrs Seyi Adeshiyan, a banker, said diplomatic disagreements should not be confused with investment decisions.
She noted that companies operating legally in Nigeria, employing Nigerians and paying taxes had become part of the country’s economy.
“If we chase away investors because of political disagreements, we risk creating uncertainty that affects every foreign investor,” she said.
Adeshiyan warned that Nigerian workers, suppliers and consumers would bear the brunt through job losses, cancelled contracts and reduced competition.
She urged the government to pursue justice through diplomatic, legal and regional channels while strengthening Nigeria’s investment climate.
Mr Ayooluwa Olushoga, a general contractor and project manager, also described calls to expel South African companies as counterproductive.
He said Nigeria could protect its citizens abroad without sacrificing jobs, tax revenue and investments generated by businesses operating legally within the country.
Olushoga added that while the government must protect Nigerians overseas, citizens living abroad should also respect the laws of their host countries to avoid worsening tensions.
ICT Editor at The Guardian, Mr Yemi Adepetun, warned that a blanket expulsion of South African firms could trigger retaliatory measures and further weaken Nigeria’s fragile economy.
“A blanket expulsion harms Nigerian workers and tax revenue more than it punishes South Africa,” he said.
Adepetun recommended stronger diplomatic engagement, visa reciprocity, emergency assistance and legal support for Nigerians abroad.
Also speaking, Ms Tosin Monijesu, a caterer, said the situation should encourage greater Nigerian ownership of strategic sectors rather than forcing foreign companies to exit.
She called for policies that promote public listings, joint ventures and increased equity participation by Nigerian investors, pension funds and institutional investors.
“Ownership matters because profits, decision making and long-term investments become more rooted in the local economy,” she said.
Editor at Nairametrics, Mr Samson Akintaro, said government actions should prioritise Nigeria’s economic interests, warning that hostile investment policies could discourage prospective investors.
He suggested stronger diplomatic measures, including recalling Nigeria’s ambassador to South Africa, instead of actions capable of damaging Nigeria’s business environment.
Businesswoman Mrs Bunmi Farotimi said public anger over repeated attacks was understandable but should not dictate national policy.
“We have to ask whether such a decision would improve the safety of Nigerians abroad or simply create new economic problems at home,” she said.
Farotimi advocated targeted diplomatic and regulatory measures alongside efforts to strengthen local businesses, improve infrastructure and diversify the economy.
Similarly, BusinessDay Tech Editor, Mrs Royal Ibeh, said South African companies such as MTN, MultiChoice and Stanbic IBTC had become significant contributors to Nigeria’s economy through jobs, taxes and investments.
She urged the government to combine firm diplomatic engagement with policies that attract more investors and strengthen domestic industries.
NAN reports that although the respondents approached the issue from different perspectives, they agreed that Nigeria should respond firmly to xenophobic attacks through diplomacy and strategic economic policies rather than measures that could weaken its own economy.
The issues
South African companies are among Nigeria’s largest foreign investors, particularly in telecommunications, financial services and media. While xenophobic attacks continue to strain relations between the two countries, analysts say policymakers face the challenge of protecting Nigerian citizens abroad without undermining investor confidence or domestic economic activity.
What’s being said
“A blanket expulsion harms Nigerian workers and tax revenue more than it punishes South Africa.” — Yemi Adepetun, ICT Editor, The Guardian
What’s next
The Federal Government is expected to continue engaging South African authorities over the attacks, while pressure from civil society groups may intensify if incidents persist.
Bottom line
Analysts say Nigeria should respond firmly to xenophobic attacks through diplomatic engagement and strategic policy measures, while avoiding actions that could undermine jobs, investment and economic stability at home.
