Fresh calls for the shutdown of South African-owned businesses in Nigeria following renewed xenophobic attacks in South Africa have triggered a heated national debate, with industry experts, business leaders and media professionals warning that such actions could ultimately hurt Nigeria more than its intended target.
The latest wave of attacks against Nigerians and other African nationals in South Africa has reignited public anger, prompting demands for economic retaliation against South African companies operating in Nigeria. However, stakeholders argue that emotional responses could have far-reaching consequences for jobs, investments and the country’s economic stability.
Their concerns come amid threats by the National Association of Nigerian Students (NANS) to disrupt the operations of major South African-linked firms, including MTN Nigeria and MultiChoice, if attacks on Nigerians continue.
NANS President, Comrade Babatunde Akinteye, had also urged Nigerians to withdraw patronage from businesses with South African roots, including Stanbic IBTC Bank, as pressure mounts on authorities to protect Nigerian citizens abroad.
But several stakeholders insist that targeting companies legally operating in Nigeria may inflict collateral damage on the country's economy.
A Lagos-based banker, Mrs. Seyi Adeshiyan, stressed that diplomatic tensions should not be confused with economic policy, noting that businesses operating within Nigeria’s legal framework contribute significantly to national development.
According to her, companies that employ Nigerians, pay taxes and comply with regulatory requirements have become integral parts of the local economy regardless of the nationality of their investors.
She cautioned that expelling such firms could trigger investor uncertainty, discourage foreign direct investment and lead to job losses, cancelled business contracts and reduced market competition.
Rather than punitive economic measures, Adeshiyan urged the government to seek justice through diplomatic channels, regional institutions and legal mechanisms while maintaining Nigeria’s reputation as an investment-friendly destination.
Echoing similar sentiments, General Contractor and Project Manager, Mr. Ayooluwa Olushoga, described calls to force South African businesses out of Nigeria as counterproductive.
He argued that while the government must firmly defend Nigerians abroad, it should not do so at the expense of local employment opportunities, tax revenues and investments generated by companies operating legally within the country.
Olushoga also noted that Nigerians living overseas should respect the laws of their host countries to avoid situations that may aggravate tensions.
For Mr. Yemi Adepetun, ICT Editor at The Guardian, an indiscriminate crackdown on South African investments could worsen Nigeria’s already fragile economic conditions and provoke retaliatory actions.
He advocated stronger diplomatic engagement, visa reciprocity measures and enhanced protection mechanisms for Nigerians abroad, including emergency support services and legal assistance.
Adepetun further called for greater collaboration through African Union structures to address recurring xenophobic attacks and improve the safety of African migrants across the continent.
Adding another dimension to the debate, caterer Ms. Tosin Monijesu argued that the controversy should serve as a wake-up call for Nigerians to increase their ownership of key sectors of the economy.
Rather than focusing solely on removing foreign investors, she said attention should be directed toward empowering Nigerian entrepreneurs and investors to compete effectively in industries where foreign firms currently dominate.
Monijesu recommended policies that encourage public listings, joint ventures and greater participation by local investors, pension funds and institutional stakeholders.
She maintained that increased local ownership would help retain profits within the country, strengthen economic independence and create sustainable wealth without undermining investor confidence.
Also weighing in, Nairametrics Editor Mr. Samson Akintaro warned that policies perceived as hostile to foreign investment could discourage future investors and weaken confidence in Nigeria’s business environment.
He suggested stronger diplomatic actions, including the recall of Nigeria’s ambassador to South Africa, as a more strategic response than measures capable of damaging the domestic economy.
Businesswoman Mrs. Bunmi Farotimi acknowledged the widespread frustration over repeated attacks on Nigerians but cautioned against allowing public anger to dictate national policy.
She argued that policymakers must carefully assess whether economic retaliation would improve the safety of Nigerians abroad or merely create new economic challenges at home.
Farotimi called for targeted diplomatic and regulatory interventions alongside efforts to strengthen local businesses, improve infrastructure and diversify Nigeria’s economy.
Similarly, Mrs. Royal Ibeh, Technology Editor at BusinessDay Newspapers, highlighted the significant contributions of South African-owned companies such as MTN, MultiChoice and Stanbic IBTC to Nigeria’s economy.
According to her, these firms have generated thousands of jobs, attracted investments and contributed substantial tax revenues over the years.
She urged the Nigerian government to intensify diplomatic engagement with South African authorities and seek broader support from the African Union to address xenophobic violence.
Ibeh also recommended attracting more investments from diverse countries while strengthening indigenous enterprises to reduce overreliance on any single foreign investment source.
Despite their differing perspectives, the stakeholders shared a common view: Nigeria must respond decisively to xenophobic attacks against its citizens, but such action should be guided by strategy rather than sentiment.
They maintained that diplomacy, economic reforms and stronger regional cooperation offer a more sustainable path than measures that could inadvertently weaken Nigeria’s own economy while seeking justice for its citizens abroad.
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