The Centre for the Promotion of Private Enterprise (CPPE) has advised the Federal Government against taking retaliatory economic measures against South African companies operating in Nigeria following renewed attacks on Nigerians and other African migrants in South Africa.
The warning was contained in a statement issued on Wednesday by the organisation’s Chief Executive Officer, Muda Yusuf.
The economic policy advocacy group said while the attacks on Nigerians in South Africa were condemnable, retaliatory actions targeting South African businesses in Nigeria would be damaging to the economy and investor confidence.
“For Nigeria, retaliatory action is neither advisable nor strategic,” the CPPE stated, adding that such measures could weaken longstanding bilateral relations and disrupt economic cooperation.
The organisation cautioned against proposals that include revoking licences or nationalising assets of South African-owned companies, describing such steps as “inappropriate, disproportionate, and counterproductive.”
It argued that the incidents in South Africa were criminal acts by non-state actors and should not be treated as official government policy.
The CPPE noted that several major South African-linked companies operate in Nigeria, including MTN Group, Shoprite Holdings, MultiChoice Group, and Standard Bank Group.
According to the group, these companies contribute significantly to employment, government revenue, supply chains, and consumer services across Nigeria.
It warned that disrupting their operations could negatively affect local workers, suppliers, contractors, and millions of consumers who rely on their services.
The CPPE also cautioned that retaliatory actions could undermine broader African economic integration efforts under the African Continental Free Trade Area (AfCFTA), which aims to strengthen trade and investment across the continent.
It stressed that maintaining stable economic relations between Nigeria and South Africa is critical for regional cooperation and long-term economic growth.
Meanwhile, diplomatic engagement between both countries continues, as Nigeria’s Ministry of Foreign Affairs recently summoned South Africa’s Acting High Commissioner for talks over rising xenophobic violence.
The Federal Government said the meeting was intended to formally address concerns over the attacks and their implications for bilateral relations.
Nigeria has seen renewed public concern following recent xenophobic incidents in South Africa affecting several African nationals, including Nigerians.
