Xenophobic Attacks: CPPE Cautions FG Against Sanctions on South African Firms

The Centre for the Promotion of Private Enterprise (CPPE) has cautioned the Federal Government against imposing retaliatory sanctions on South African companies operating in Nigeria following renewed xenophobic attacks on Nigerians and other African migrants in South Africa.

In a statement issued on Wednesday and signed by the Chief Executive Officer of the CPPE, Muda Yusuf, the economic policy advocacy group warned that punitive measures targeting South African investments could damage Nigeria’s economy, weaken investor confidence, and strain bilateral relations between both countries.

The CPPE condemned the attacks on Nigerians in South Africa, describing the incidents as unacceptable and criminal, while urging South African authorities to take decisive steps to prevent further violence against foreign nationals.

According to the organisation, although the attacks have generated widespread outrage in Nigeria and prompted calls for tougher action against South African businesses, retaliatory economic measures would be counterproductive and harmful to Nigeria’s economic interests.

“For Nigeria, retaliatory action is neither advisable nor strategic,” the statement said.

“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.”

The organisation further stated that proposals being canvassed in some quarters, including the revocation of operating licences of South African firms, the nationalisation of South African-owned assets, or sanctions against businesses linked to South Africa, would send negative signals to investors and disrupt economic activities.

“However, extreme responses by the Nigerian government, 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,” the CPPE stated.

“Such measures could damage longstanding bilateral relations, weaken investor confidence, and undermine the broader objective of African economic integration.”

The group argued that the xenophobic attacks should not be interpreted as official policy of the South African government, noting that the violence was largely perpetrated by criminal elements and non-state actors.

According to the CPPE, maintaining stable economic ties between Nigeria and South Africa remains critical for regional trade cooperation and investment flows across the African continent, particularly under the African Continental Free Trade Area framework.

The organisation warned that punitive measures against South African firms operating in Nigeria could have unintended consequences on Nigerian workers, consumers, and local businesses linked to those investments.

The CPPE identified several major South African-linked companies with substantial operations in Nigeria, including MTN Group, Shoprite Holdings, MultiChoice Group, and Standard Bank Group.

According to the organisation, these firms contribute significantly to employment generation, government revenue, telecommunications services, retail trade, financial services, and supply chain activities in Nigeria.

The CPPE stated that disrupting the operations of such companies could negatively affect local suppliers, contractors, and millions of consumers who depend on their products and services.

The group also warned that any attempt to impose sanctions on foreign investors based on diplomatic tensions could undermine Nigeria’s efforts to attract investment at a time when the country is seeking capital inflows to support economic reforms and growth.

It added that investor confidence remains a critical factor for economic recovery and sustainable development, stressing that policy consistency and protection of investments are essential to maintaining Nigeria’s reputation as a viable investment destination.

The organisation urged the Nigerian government to continue engaging South African authorities through diplomatic channels while ensuring adequate protection for Nigerians living and working in South Africa.

It also called for stronger cooperation between African governments in addressing migration-related tensions, unemployment, and social challenges that often fuel xenophobic violence across the continent.

The CPPE maintained that African countries should prioritise dialogue, regional cooperation, and economic integration instead of retaliatory actions capable of undermining continental trade and investment objectives.