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Xenophobia is what is trending in Nigeria now, and am sure you all what it is. In effect of this commotion, Adams Oshiomole, the National Chairman of Nigeria’s ruling party All Progressive Congress (APC) has called for the Nationalisation of South African Companies in Nigeria.
In the remark, the targeted South African companies, MTN, Multichoice, Stanbic IBTC asking Nigerians to boycott them. He also claimed Nigerian ownership in these companies are small compared to South African ownership and as such the government should threaten to nationalize the foreign ownership.
Although calling for a Nationalisation of South African companies or indeed any foreign company is currently not legally possible in the country and will require legislation. The last time nationalization happened was in the late seventies when former military leader Olusegun Obasanjo implemented the indigenization policy. Foreign investors are allowed to own 100% interest in any business in Nigeria.
However, the closeness between Adams Oshiomole and the President tells remarks like this could be viewed as representing the opinion of the government. Which put foreign investors wary and fear about investing in Nigeria under the Buhari dispensation due to its hawkish policies against foreign imports.
Statistical data gather from the National Bureau of Statistics reveals Nigeria received $5.82 billion capital inflows in the second quarter (Q2) of 2019, compared to $8.48 billion in the first quarter (Q1). This represents a whopping 31.4% quarter on quarter drop in inflows. Foreign Direct Investment, the most sought after of foreign investment was a paltry $222.89 million
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