By: Tijani Salako.
The Centre for the Promotion of Private Enterprise (CPPE) has cautioned the Federal Government against taking retaliatory economic measures against South African businesses operating in Nigeria following the recent xenophobic attacks on Nigerians and other African migrants in South Africa.
In a statement issued on Thursday, the Director of CPPE, Muda Yusuf, described proposals to revoke the operating licences of South African companies or nationalise their assets as inappropriate, disproportionate and potentially damaging to Nigeria’s economy and investor confidence.
The economic policy think tank noted that while the attacks on Nigerians are condemnable and require urgent intervention by South African authorities, punitive actions against legitimate South African investments in Nigeria would undermine bilateral economic relations and the broader goal of African economic integration.
According to CPPE, major South African firms, including MTN Group, Shoprite Holdings, MultiChoice Group and Standard Bank Group, have made significant contributions to Nigeria’s economy by creating jobs, expanding access to essential services, improving financial inclusion, generating tax revenues and supporting thousands of local suppliers and service providers.
The organisation warned that disrupting these investments would not only affect the companies involved but also negatively impact Nigerian workers, businesses and consumers who rely on their operations.
CPPE attributed the recurring xenophobic attacks in South Africa largely to economic and social pressures, including rising unemployment, poverty, inequality and weak public service delivery. It noted that Nigerian entrepreneurs have become frequent targets because of their strong presence in retail trade, informal businesses and service sectors.
The organisation stressed that the attacks were not official policy of the South African government but criminal acts carried out by non-state actors driven by socio-economic frustrations. It therefore urged South African authorities to strengthen policing, intelligence gathering and prosecution of offenders while taking decisive steps to protect the lives and property of migrants.
CPPE also called on the Nigerian government to intensify diplomatic engagement with South Africa to ensure the safety of Nigerians living in the country while preserving mutually beneficial trade and investment ties.
The organisation maintained that sustained dialogue, stronger law enforcement and efforts to address South Africa’s structural economic challenges remain the most effective path to safeguarding lives, protecting investments and advancing Africa’s economic integration.
