The Nigerian government has announced plans to seize properties abandoned by South African nationals in what senior officials describe as a retaliatory measure against Pretoria’s failure to protect Nigerian investments. The move, confirmed by the Nigerian Ministry of Foreign Affairs, is likely to deepen the rift between Africa’s two largest economies.
According to a statement issued in Abuja, the government has placed a freeze on all vacant South African-owned commercial and residential assets within Nigerian territory. These assets are expected to be auctioned to recover losses incurred by Nigerian businesses that were vandalised during recent xenophobic attacks in South Africa. The statement emphasised that the decision was taken after diplomatic channels failed to secure compensation.
British investment funds have already expressed interest in the expropriated real estate. Sources close to the London-based financial institutions indicate that several portfolios of office blocks and logistics centres in Lagos and Abuja are under consideration. The Nigerian government is said to be facilitating the process in order to send a signal that the country remains open for business, even amid the dispute.
The underlying conflict stems from a wave of violence against foreign-owned shops in Johannesburg and Durban in late 2023. At least 20 Nigerian-owned businesses were destroyed, prompting calls for reprisals. South Africa’s President, Cyril Ramaphosa, condemned the attacks but failed to offer compensation or prevent further incidents. Nigeria, which has historically acted as a stabilising force in the region, now appears to be adopting a more assertive posture.
Economists warn that the asset seizure could undermine the broader West African economic bloc. The Economic Community of West African States (ECOWAS) relies on Nigerian-South African cooperation for trade facilitation. A protracted dispute may slow cross-border investment and harm growth projections for both nations.
South Africa’s High Commission in Abuja has formally protested the seizures, calling them a violation of international law. In a press briefing, the acting High Commissioner said that the actions were taken without due process and that South Africa reserved the right to take countermeasures. Legal experts, however, note that international law permits states to reprimand foreign entities under the doctrine of reciprocity, provided that steps are taken in good faith.
Nigeria’s Ministry of Finance has stated that proceeds from the sales will be held in an escrow account to compensate victims of the xenophobic attacks. The British investors have been invited to participate in a closed bidding process scheduled for next month.
This is not the first time that Nigeria has used economic coercion against South Africa. In 2012, Nigeria expelled South African telecom giant MTN over tax disputes. The pattern suggests that Nigeria is increasingly willing to leverage its market size to achieve diplomatic ends.
The development has raised concerns among other foreign investors. The American Chamber of Commerce in Nigeria released a statement urging both governments to resolve the matter through arbitration rather than unilateral action. The Chamber noted that the uncertainty could deter future capital inflows into the continent’s most populous nation.
As the situation unfolds, the international community is watching closely. The United Nations Economic Commission for Africa has offered to mediate. Neither government has yet accepted the offer.
