May 07, (THEWILL) — The Centre for the Promotion of Private Enterprise (CPPE) has advised the Federal Government not to impose 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 by its Chief Executive Officer, Dr Muda Yusuf, the economic policy advocacy group condemned the attacks. Still, it warned that punitive measures against South African investments could hurt Nigeria’s economy and weaken investor confidence.
The CPPE’s position comes amid mounting public anger and growing calls for tougher action against South African firms operating in Nigeria.
According to the organisation, while the attacks on Nigerians are unacceptable and must be decisively addressed by South African authorities, targeting businesses linked to South Africa would be “counterproductive and disproportionate”.
“Extreme responses such as revoking operating licences, nationalising assets, or targeting South African investments in Nigeria are not advisable”, the statement said. “Such actions could damage bilateral relations, weaken investor confidence, and undermine African economic integration.”
The group argued that the attacks were largely criminal acts carried out by non-state actors and should not be seen as the official policy of the South African government.
CPPE also highlighted the economic contributions of major South African-linked firms operating in Nigeria, including MTN, Shoprite, MultiChoice, and Stanbic IBTC, noting that they provide jobs, generate tax revenue, and support millions of consumers and local businesses.
It warned that disrupting their operations could affect Nigerian workers, suppliers, contractors, and investors negatively, while also hurting regional trade cooperation under the African Continental Free Trade Area (AfCFTA).
Meanwhile, the Ministry of Foreign Affairs recently summoned South Africa’s Acting High Commissioner over the renewed xenophobic violence, expressing concerns about its implications for diplomatic relations between both countries.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
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