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🇳🇬 Nigeria /Culture & Society

Xenophobia: Leave MTN, DStv alone

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

Analysis Named sources Context piece
  • South African authorities are criticized for allowing street gangs to engage in xenophobic attacks against fellow Black Africans, including looting and violence.
  • Some Nigerians have called for retaliatory measures, such as nationalizing South African businesses like MTN and MultiChoice (DStv), to protest the attacks.
  • The article argues that nationalizing these businesses would harm Nigeria's economy, investor confidence, and foreign direct investment, advocating for more mature and strategic responses instead.

South African authorities face severe criticism for allegedly permitting street gangs to usurp immigration control and perpetrate xenophobic violence against fellow Black Africans. These attacks have involved looting, assaults, and acts described as bordering on genocide. Many analysts suggest the government's inaction is a deliberate tactic to divert attention from its failure to improve living conditions for the Black majority, decades after apartheid's end.

Punishing private businesses for the failings of another country’s government would amount to Nigeria inflicting harm on itself.

The article argues against retaliatory nationalization of South African businesses, stating it would harm Nigeria's own interests.

In response to these escalating attacks on Nigerians and other African nationals, some Nigerians have proposed retaliatory economic measures. Senator Adams Oshiomhole, notably, urged the Nigerian government to nationalize key South African businesses operating in the country, specifically naming MTN Nigeria, MultiChoice Nigeria (DStv), and Stanbic IBTC. Earlier calls included revoking operating licenses and nationalizing MTN.

It would damage investor confidence, undermine the country’s ease-of-doing-business credentials and weaken its struggling foreign direct investment drive.

The author explains the negative economic consequences for Nigeria if it were to nationalize South African companies.

However, the article contends that such actions would be a costly mistake for Nigeria. Punishing private companies for the failings of another country's government would inflict self-harm, damage investor confidence, undermine Nigeria's ease-of-doing-business reputation, and hinder its foreign direct investment drive. The piece recalls Nigeria's own history of nationalizations in the 1970s, questioning their lasting benefits. It emphasizes that these companies contribute significantly to the Nigerian economy and are often deeply integrated, with substantial Nigerian ownership through stock listings and pension funds. The article advocates for a mature and strategic approach to seeking redress, rather than measures that would ultimately harm Nigeria.

These companies have made substantial contributions to the economy. Besides, some of them are no longer exclusively South African-owned.

The article highlights the economic importance and evolving ownership structures of companies like DStv and MTN in Nigeria.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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