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Despite xenophobia, South African investors pour nearly $1bn into Nigeria

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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.

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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.

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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.

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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.

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NAFDAC destroys N8bn products, targets sachet alcohol in N’Central

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The National Agency for Food and Drug Administration and Control (NAFDAC) has confiscated and destroyed unwholesome, banned, fake and adulterated products worth more than N8 billion in the North-Central states.

Speaking during the destruction ceremony on Thursday in Lafia, the Nasarawa State capital, the Director-General of NAFDAC, Prof. Mojisola Adeyeye, said the products were seized from manufacturing outfits, sales outlets, markets and motor parks across the zone.

The DG, who was represented by a Deputy Director of NAFDAC in the zone, Joseph Edor, said most of the confiscated products were banned alcoholic beverages in small volumes of less than 200 ml (20 cl).

According to her, NAFDAC was established by Decree No. 19 of 1993, as amended, with the mandate to protect and promote public health by ensuring that only quality, efficacious and regulated products are manufactured, imported, distributed and sold in Nigeria.

She explained that the agency banned alcoholic beverages in sachets and glass bottles of less than 200ml due to their availability, affordability and portability, which have made them easily abused by youths and underage schoolchildren.

“Research has shown that early exposure to alcohol affects the brain and other vital organs such as the liver and kidneys.

“It stymies the brain, resulting in mental retardation, brain damage, poor performance of pupils in school, low productivity and several types of illnesses,” she said.

The DG said the ban and subsequent raids were based on these abuses, addiction and adverse health effects, while other seized items included expired, fake and unwholesome food, drugs and cosmetics.

“It is in the course of carrying out these activities that this heap of unwholesome, banned, fake and adulterated products worth about eight billion naira was confiscated from manufacturing outfits, sales outlets, markets and motor parks.

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“The bulk of the products in that pile are predominantly banned alcoholic beverages in low volumes of less than 200ml (20cl),” she emphasised.

The Director-General further commended other law enforcement agencies, sister agencies and stakeholders for their continuous collaboration, especially in intelligence sharing and security cover during operations.

Also speaking at the event, the Nasarawa State Coordinator of NAFDAC, Dr Gyani Stephen, explained that the exercise was not targeted at hurting people but was intended to save lives.

He advised those in the habit of selling fake and banned products to desist or be ready to face the full wrath of the law, warning that the agency would come after them if they did not change their ways.

In his goodwill message, the Nasarawa State Commander of the National Drug Law Enforcement Agency, Daniel Saidu, represented by Yakubu Awoh, commended NAFDAC for saving lives through the regular seizure and destruction of expired and fake drugs.

He explained that if these dangerous products were allowed into the markets, they could have destroyed millions of lives and affected the mental health of many others.

Source: punchng.com

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Seven modular refineries to begin operations in 2027, read details

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Nigeria’s modular refining sector is expected to expand next year, with seven new refineries projected to commence operations with a combined capacity of 83,000 barrels per day, according to Argus Media’s George Maher-Bonnett.

Maher-Bonnett disclosed this in Lagos on Wednesday during a presentation at the OTL Africa Downstream conference, where he highlighted the changing dynamics of Nigeria’s petroleum products market amid rising local refining capacity and declining fuel demand.

In his presentation, titled ‘African Energy Outlook’, Maher-Bonnett said four modular refineries operated in Nigeria in September, with a combined capacity of 32,000 barrels per day.

“Four modular refineries operating in September, total 32,000 b/d capacity,” he said.

He added, “Seven new modular refineries to start next year“ with a total of 83,000 barrels per capacity.

The projected additions would represent more than two and a half times the combined capacity of the four modular refineries operating in September, potentially increasing the contribution of smaller refining facilities to Nigeria’s domestic petroleum products supply.

However, the presentation did not identify the seven proposed refineries, their owners or locations, or provide individual capacity figures and commissioning schedules.

Maher-Bonnett also highlighted the growing role of the Dangote Petroleum Refinery in improving Nigeria’s self-sufficiency in petroleum products, despite a decline in fuel demand during the year.

“Nigerian fuels demand is down this year,” the presentation stated, attributing the development to “higher flat prices.”

He added self-sufficiency is improving with Dangote ramp-up, projecting that modular refineries would play a growing role.

The presentation linked the decline in demand to higher prices and noted that the only government intervention during the period covered was an NNPC price reduction.

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“No government interventions, besides NNPC price cut this month,” it stated.

The expected expansion of modular refining capacity comes as Nigeria’s petroleum products market adjusts to increased domestic production and changing international trade flows.

Maher-Bonnett said the Dangote refinery is operating at a high rate, with steady petrol output, reducing the attractiveness of importing some petroleum products from Europe into West Africa.

“Dangote’s 700,000 bpd Lekki refinery is running hard, gasoline output is steady,” the presentation stated.

It also highlighted Ghana’s growing refining capacity, noting that the 45,000-barrel-per-day Tema refinery is ramping up production and improving the country’s self-sufficiency.

According to the presentation, the economics of shipping petroleum products from Europe to West Africa and from Europe to the United States has weakened, with freight costs further affecting the competitiveness of the routes.

Source: punchng.com

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Falana tasks Senate on recovery of $123bn, N66bn oil funds, read details

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Human rights lawyer, Femi Falana, has asked the National Assembly to compel the recovery of $123.17bn in alleged outstanding oil royalties, taxes and dividends, alongside N66.4bn, from the Nigerian National Petroleum Company Limited and other oil and gas companies.

In a letter dated 28 October, 2026, and titled ‘Request to Recover Dividends, Taxes and Royalties Worth $123.17bn and N66.4bn from NNPC and Other Companies and Remit Same to the Federation Account’, Falana urged the National Assembly to ensure that the alleged outstanding revenues were recovered and remitted to the federation account.

He warned that he would institute legal proceedings at the Federal High Court if the authorities failed to initiate measures to recover the funds within 14 days of receiving the letter.

In an acknowledged copy of the letter made available to The PUNCH on Thursday, the senior advocate said the outstanding revenues covered several categories, including $62bn in unpaid oil royalties, $23.1bn in alleged unremitted dividends from Nigeria LNG Limited, $6.071bn in outstanding industry revenues, and claims relating to stolen crude oil and refinery rehabilitation contracts.

The letter also cited a Supreme Court consent judgment delivered on 20 October, 2018, which it said directed the Federal Government to collect outstanding royalties accrued over 18 years under the Deep Offshore and Inland Basin Production Sharing Contracts Act.

According to Falana, the governments of Akwa Ibom, Bayelsa and Rivers states had approached the Supreme Court to compel the Federal Government to enforce the law, which provided for an upward review of royalties when international crude oil prices exceeded $20 per barrel.

He said a committee constituted by the Office of the Attorney-General of the Federation subsequently determined that $62bn in royalties had not been collected from international oil companies.

Falana added that Akwa Ibom and Rivers states later obtained a Federal High Court judgment for a combined $3.3bn, while Bayelsa State secured a separate judgment for $951m over their alleged entitlements from the outstanding royalties.

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He said the Federal Government had yet to comply with the judgments.

The lawyer also called for the recovery of $29bn linked to alleged crude oil theft and undeclared exports, citing investigations by the Nigerian Maritime Administration and Safety Agency and the House of Representatives.

He said lawyers engaged by NIMASA discovered that about 60.2 million barrels of crude oil, valued at $12.7bn, allegedly stolen from Nigeria, were discharged at the Port of Philadelphia in the United States between 2011 and 2014.

According to the letter, the lawyers submitted their findings to the Office of the Attorney-General after which they filed nine civil cases at the Federal High Court in Abuja and Lagos to recover the value of the alleged stolen crude oil and liquefied gas.

Falana further cited a 2016 House of Representatives ad hoc committee investigation, which he said found that $17bn worth of crude oil and liquefied natural gas had been exported from Nigeria without proper records.

He said the committee found that the crude oil was discharged at the ports of Houston and Lake Charles in the United States.

He urged the National Assembly to direct the Economic and Financial Crimes Commission to pursue the recovery of the funds from the companies allegedly involved.

On the NLNG dividends, Falana alleged that NNPC had failed to remit $23.1bn due to the Federal Government from its 49 per cent shareholding in NLNG.

He explained that NLNG, established in 1989, had paid more than $47bn in dividends to its shareholders over 26 years, with the Federal Government’s share paid through NNPC.

The other shareholders listed in the letter are Shell, with 25.6 per cent; TotalEnergies, 15 per cent; and Eni International, 10.4 per cent.

Falana argued that the dividends received by NNPC on behalf of the Federal Government should have been transferred to the Federation Account in accordance with Section 162 of the 1999 Constitution, as amended.

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He added that resolutions of the Senate and the House of Representatives calling for the remittance of the funds had allegedly been ignored.

The senior advocate also called for the recovery of $6.071bn and N66.4bn in outstanding revenues owed by oil and gas companies, citing the Nigerian Extractive Industries Transparency Initiative’s 2022/2023 Independent Oil and Gas Industry Report.

According to him, NEITI disclosed on 27 September, 2024, that the outstanding collectible revenues due to the Federal Government as of June 2024 stood at the stated amounts.

He said copies of the report were forwarded to both chambers of the National Assembly in November 2024 in line with the provisions of the NEITI Act.

Falana urged lawmakers to support NEITI in recovering the outstanding revenues without further delay.

The letter also questioned the outcome of the rehabilitation of the Port Harcourt, Warri and Kaduna refineries, for which the Federal Executive Council approved contracts totalling about $2.98bn in 2021.

It said the government approved $1.5bn for the rehabilitation of the Port Harcourt refineries in April 2021 and another $1.48bn for the Warri and Kaduna refineries in August of the same year.

Falana argued that NNPC announced in December 2024 that the Port Harcourt and Warri refineries had been substantially completed, while work on the Kaduna refinery was almost finished.

However, he cited NNPC’s subsequent announcement that the Warri refinery ceased operations on 25 January, 2025, following safety issues involving its crude distillation unit main heater. He also referred to the shutdown of the Port Harcourt refineries for planned maintenance in May 2025.

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He argued that the contractors had breached the terms of the rehabilitation agreements and called for the recovery of the contract sums.

“In view of the foregoing, we are compelled to request the Office of the Attorney-General to recover the total sum of $123.17bn and N66.4bn owed the Government of the Federation by the Nigerian National Petroleum Corporation Limited, and some oil and gas companies operating in Nigeria,” the letter stated.

Falana said recovering the funds would reduce the Federal Government’s dependence on external borrowing and provide additional revenue for the federation and the states.

He warned that failure to begin recovery measures within 14 days would prompt legal action.

“If you fail to initiate legal measures for the recovery of the aforesaid huge funds belonging to the Government of the Federation within 14 days of the receipt of this letter, we shall not hesitate to file the necessary processes in the Federal High Court with a view to compelling you to discharge the duty of your office,” he wrote.

Falana also defended his firm’s standing to pursue the matter, citing its involvement in drafting and submitting a bill to amend the Deep Offshore and Inland Basin Production Sharing Contracts Act in 2017.

He noted that the bill was adopted and sponsored by a senator, subsequently passing first reading in the Senate before the dissolution of the Eighth National Assembly. According to him, the Ninth National Assembly subsequently adopted and passed the amendment.

He recalled that the then President of the Senate, Ahmad Lawan, had said the amendment would increase the country’s revenue by at least $1.5bn annually.

Source: punchng.com

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