South African investment in Nigeria climbed to nearly $1 billion in the first quarter of 2026, highlighting the strength of economic ties between Africa’s two largest economies despite ongoing diplomatic tensions over xenophobic attacks. According to data released by the National Bureau of Statistics (NBS), investors from South Africa brought in $983.83 million during the period, making the country Nigeria’s third-largest source of foreign capital after the United Kingdom and the United States.
The latest figures represent a significant jump in investor confidence, with South African capital inflows rising by more than 90 percent from the previous quarter and almost doubling compared to the same period in 2025. The increase comes at a time when concerns continue to grow over recurring attacks on Nigerians and other African migrants in South Africa, incidents that have repeatedly sparked public outrage and strained relations between both nations.
Despite these challenges, business and investment activities between the two countries have remained remarkably resilient. Historical data show that South African investments in Nigeria have fluctuated over the past two years, but the latest quarter recorded one of the strongest performances on record. Analysts say the trend reflects the attractiveness of Nigeria’s large market and growing investment opportunities, which continue to draw foreign investors regardless of political disagreements.
The broader NBS report revealed that Nigeria attracted a total of $10.37 billion in capital importation during the first quarter of 2026, an increase of more than 83 percent compared to the same period last year. The United Kingdom led the inflow with over $5 billion, followed by the United States with $3.18 billion. Portfolio investments dominated foreign capital inflows, while foreign direct investment remained relatively low, accounting for just 1.3 percent of the total capital imported into the country.
The surge in South African investment comes amid renewed calls for stronger action against South African interests following fresh reports of xenophobic violence. While some Nigerian leaders and business figures have advocated economic retaliation, recent developments suggest that investors remain focused on long-term opportunities. With major South African institutions also exploring prospects in strategic sectors such as refining, petrochemicals, and manufacturing, economic cooperation appears to be thriving even as diplomatic tensions continue to simmer in the background.
source: punch
