Nigeria And South Africa: A Study Of Unequal Investment Relations

Abstract: With advancement in Nigeria-South Africa relations, unequal investment became more apparent. South African businesses abound in Nigeria with Shoprite, MTN, Stambic IBTC Bank, Multichoice (DSTV), etcetera featuring prominently. Nigerian companies in South Africa are not dominant in any sector or have any noticeable spread in the economy. This study investigated the nature of Nigeria-South Africa unequal investment relations and factors that hinder Nigeria’s efforts to balance them. The paper is a descriptive as well as qualitative study. Source and method of data collection were based on published online and hardcopy data, and realist theory of power served for explanation. Findings revealed that South Africa’s investments in Nigeria enjoy favorable economic policies and conducive environment and receive enough patronage and profits from large Nigerian population. This situation is reverse for Nigerian companies in South Africa where restrictive laws and unfriendly government polices constitute major challenges. The unequal investment relations between the two countries are the outcome of the struggle to achieve national economic interests with multi-national corporations serving as the suitable tools. Unfortunately, Nigeria runs business deficit in the struggle. The paper recommended the need for good governance and review of Nigeria’s foreign investment policies to make them more mutually reciprocal. In addition, government’s efforts should focus more on self-investment, infrastructural development and diversification of areas of investment than on campaign for Foreign Direct Investment.
Keywords: Bilateral Relations, Nigeria-South Africa Relations, Unequal Relations, Investment, Unequal Investment