South African investors have channelled $983.83m into Nigeria in the first quarter of 2026 despite recurring xenophobic attacks against Nigerians and other African migrants in the country, new data from the National Bureau of Statistics has shown.
The figure represents a 90.31 per cent increase from the $516.96m recorded in the fourth quarter of 2025 and a 96.26 per cent rise from the $501.29m invested in the corresponding period of 2025.
An analysis of the NBS Capital Importation Report for Q1 2026 showed that South Africa was Nigeria’s third-largest source of foreign capital during the quarter, behind the United Kingdom and the United States, accounting for 9.49 per cent of the total $10.37bn capital imported into the country.
The latest inflow came despite renewed concerns over xenophobic attacks in South Africa, where Nigerians have repeatedly been among foreign nationals targeted during periodic outbreaks of violence.
South Africa has experienced major waves of xenophobic attacks since 2008, with fresh anti-migrant tensions resurfacing in recent months. The attacks have repeatedly strained diplomatic relations between Africa’s two largest economies and prompted calls in Nigeria for stronger action against South African interests.
However, the latest investment data indicate that commercial ties between the two countries have remained resilient despite recurring diplomatic tensions.
The Q1 2026 inflow from South Africa was $466.87m higher than the $516.96m recorded in the preceding quarter and exceeded the $501.29m invested in Q1 2025 by $482.54m.
Historical data showed that South African capital inflows into Nigeria have fluctuated considerably over the past two years. Investment stood at $582.34m in the first quarter of 2024, then fell to $255.98m in the second quarter and $185.03m in the third quarter. It rebounded to $454.94m in the fourth quarter of 2024, rose to $501.29m in Q1 2025 and climbed above the $1bn mark to $1.01bn in Q2 2025.
The inflow moderated to $773.95m in the third quarter of 2025 and $516.96m in the fourth quarter before rebounding sharply to $983.83m in the first quarter of this year. The latest figure is the second-highest quarterly investment from South Africa over the nine-quarter period reviewed, behind the $1.01bn recorded in the second quarter of 2025.
The NBS report showed that Nigeria attracted total capital importation of $10.37bn in the first quarter of 2026, representing an 83.83 per cent increase from $5.64bn in the corresponding period of 2025. Compared with the preceding quarter, capital inflows rose by 60.97 per cent, from $6.44bn.
The United Kingdom remained the country’s largest source of capital with $5.08bn, representing 49.01 per cent of total inflows, while the United States followed with $3.18bn or 30.69 per cent. South Africa ranked third with $983.83m, ahead of Mauritius at $390.07m and the United Arab Emirates at $194.51m.
The report also showed that portfolio investment continued to dominate foreign capital inflows, accounting for $9.86bn or 95.09 per cent of the total. Other investment contributed $374.48m or 3.61 per cent, while foreign direct investment remained weak at $135.08m, representing just 1.30 per cent of total capital importation.
By sector, the banking industry attracted the largest inflow of $7.55bn, accounting for 72.79 per cent of total capital imported during the quarter. The financing sector followed with $2.43bn or 23.42 per cent, while production and manufacturing received $152.27m or 1.47 per cent.
The NBS also disclosed that Standard Chartered Bank Nigeria Limited received the highest capital importation during the period, with $4.41bn or 42.56 per cent. Stanbic IBTC Bank Plc followed with $2.78bn, while Rand Merchant Bank received $930.82m, representing 8.97 per cent of the total capital imported.
The data show the resilience of investment ties between Nigeria and South Africa despite recurring political tensions arising from attacks on foreign nationals.
The PUNCH recently reported that South Africa’s leading pension and investment institutions are eyeing investment opportunities in the Dangote Petroleum Refinery and Petrochemicals following a high-level visit to the facility.
According to a statement by the company, the delegation from the South African Government Employees Pension Fund, the Public Investment Corporation, and Alterra Capital Partners toured the Dangote Petroleum Refinery & Petrochemicals and Dangote Fertiliser Limited in Ibeju-Lekki, Lagos.
The PUNCH also reported that Nigeria’s importation of goods from South Africa rose by 23.83 per cent to N155.26bn in the first quarter of 2026, during a period of escalating diplomatic tensions.
The Chairman and Chief Executive Officer of Air Peace, Allen Onyema, earlier urged Nigerians to adopt a non-violent economic boycott of South Africa in response to recurring xenophobic attacks against African migrants, including Nigerians.
Speaking during an interview on Arise Television, Onyema said Nigerians should stop investing in South Africa while encouraging their businesses to invest in Nigeria under terms determined by the Nigerian government.
“The kind of retaliation I want is for Nigerians to boycott South Africa. Don’t invest in that country. If they want to invest in our country, let them bring their money and invest, and you determine how they take the money back. That is non-violent action,” he said.
The Air Peace boss accused South African authorities of failing to adequately protect foreign nationals during periods of unrest.
Also, the Federal Government declared that it is displeased with the South African government’s failure to respond firmly enough to the renewed wave of xenophobic attacks targeting Nigerian nationals, warning that retaliatory diplomatic gestures, including a review of bilateral privileges, were being actively considered and were not off the table.
Minister of Foreign Affairs, Amb Bianca Odumegwu-Ojukwu, who briefed State House correspondents after a meeting with President Bola Tinubu at the Presidential Villa, Abuja, also rejected outright claims by some South African authorities that the Nigerians under attack were illegal migrants.
She argued that Nigerian passport holders were being harassed, having their shops looted and set ablaze, and that their children were being intimidated in schools, all while South African police looked on.
The minister cited Nigeria’s historical sacrifice for South Africa’s freedom, a sacrifice she argued makes the current treatment of Nigerians especially painful and unacceptable.
When asked whether Nigeria was considering retaliatory measures, including the suspension or review of privileges currently enjoyed by South African businesses and nationals in Nigeria, the minister said, “That is a situation that we are considering. This is a decision that has to be taken at the highest level of government. But it is not off the table.”
The House of Representatives had earlier recommended a temporary suspension of business permits for South African companies operating in Nigeria, and the Senate resolved to send a high-level delegation led by Senate President Godswill Akpabio to South Africa to formally express Nigeria’s displeasure.
